Knight Frank has released a new report on office market summing up the recent activity of tenants and developers in Poland. According to the analysts, occupiers demand dropped in the last quarter in Katowice when compared to the Q1 results. The lower transaction volume was registered only in TriCity. Despite the weaker tenants interest, Katowice experienced decreasing vacancy rates.
Following a strong opening quarter of 2013, Q2 saw subdued transactional activity. Between April and the end of June approximately 8 200 sq. meters of office space was leased in Katowice, over 55% down on the previous three months. In the analyzed period, activity was characterized by the prevalence of new deals which accounted for over 50% of the total quarterly take-up.
A negligible amount of new supply introduced to the market this year has led to the gradual absorption of existing vacancies which was reflected in a drop in vacancy from 10% in Q1 2013 to some 7,8% in Q2 2013.
Over the second quarter the average weighted asking rent in Katowice noted a marginal increase, by some 2%, and at the end of June amounted to EUR 13,1/sq. m/month. Asking rents for office space in class A buildings ranged between EUR 13 and 15,5/sq. m/month, while the level of rents quoted in class B buildings was between PLN 40 and 58/sq. m/month.