Polish regional office market doing fine despite coronavirus - report
Office markets in Poland's biggest regional cities are coping well despite the coronavirus epidemic, real estate advisor CBRE said in a Thursday report.
In the first three quarters of 2020, Poland added 305,000 square metres of new office space, nearly the same as in the first nine months of 2019. Close to 700,000 square metres of office space is under construction, the report reads.
The eight biggest regional markets, including Kraków, Wrocław, Katowice, Łódź, Poznań, Szczecin, Lublin and the Tri-City metropolitain area of Gdańsk, Sopot and Gdynia, saw a 10 percent quarter-on-quarter increase in rented office space, to 126,500 square metres. However, the figure is still 36 percent less compared to the third quarter of 2019.
In the third quarter of 2020, the biggest regional cities overtook Warsaw in terms of rented office space, said Kamil Tyszkiewicz, head of CBRE's regional markets section.
The IT sector dominated the eight regional markets in the third quarter of 2020 and was responsible for one-third of total demand and 41,400 square metres of rented office space. IT was followed by the consumer services sector with 34,000 square metres and 27 percent of total demand, Tyszkiewicz also said.
Polish regional cities offer a total of 5.7 million square metres of office space. The southern city of Kraków is in the lead with 1.5 million square metres and is followed by south-western Wrocław with 1.2 million square metres and the Tri-City area on the Baltic coast with 900,000 square metres.