Colliers summarized commercial markets after Q1

Colliers International released a report on the real estate market in Poland after the first quarter of 2016. The publication „Market Insights” summarizes the office, warehouse and retail space markets, including Katowice and the area.

© Colliers International; key office figures (Q1 2016)
© Colliers International; key office figures (Q1 2016)

According to Colliers International, there were 394 400 sq. meters of modern office space in the city after the first quarter of 2016. It makes Katowice the fifth largest office market in Poland. New supply amounted to only 2 900 sq. meters, while 41 600 sq. meters were under construction. Most of new office space was constructed in such regional cities as Kraków (280 800 sq. meters), Wrocław (173 600 sq. meters) and Tricity (115 600 sq. meters).

In the last quarter, tenants leased 10 700 sq. meters of office space in Katowice. The largest agreement was signed by Rockwell Automation, which will occupy 7 400 sq. meters in the third building of A4 Business Park. It was the third largest deal secured among all Polish regional markets in the Q1. Only Credit Suisse (10 800 m² in Grunwaldzki Center, Wrocław) and Aon (10 700 m² in Enterprise Park E, Kraków) leased more space.

Vacancy rate below 10% were recorded in four cities, the rate was between 10 and 20 percent on four regional markets. The highest level of available space was registered in Szczecin (18,3%) and Katowice (17,4%). Average rents in Katowice varied between EUR 12 and 14 per one square meter per month.

In case of the warehouse market, the Upper Silesia was the second most desirable destination among tenants after Warsaw. 152 000 sq. meters of warehouse space were leased in the region last quarter. New supply amounted to 86 000 sq. meters in the same period, which was the second best volume after Warsaw (zone II). The largest new project delivered to the market was three warehouses of Panattoni Park Sosnowiec II (41 000 sq. meters). About 5% of space remained vacant on the market in the Q1.

The largest deals were signed by the owner of Prologis Park Chorzów, including DHL (17 800 sq. meters, expansion) and Archidoc (16 700 sq. meters, renegotiation). The Upper Silesia remained the second largest market in terms of transaction volume and maintained its high position since the last year. According to Colliers International, 152 000 sq. meters within 18 agreements were leased in the region. Effective rental rates were between EUR 2 and 2,7 per one square meter per month.

In case of the retail market, the analysts indicated the first leasing deal in Echo Investment’s Galeria Libero signed by the Alma Delicatessen (1 900 sq. meters) and the modernization of retail units in Silesia City Center. The vacancy rate in the shopping centers in Upper Silesia reached the level of 3,8%.