Global real estate services firm Cushman & Wakefield summarises the Tricity office market at year-end of 2018.
With 775,000 sq m of office stock, Tricity is the fourth largest regional city office market in Poland. Office absorption outstripped new supply in the last two years by 19% and 13%, respectively, and in 2018 alone amounted to more than 87,500 sq m. Healthy occupier activity and stable supply levels pushed Tricity’s vacancy rate down to 6.1% at the end of 2018, one of the lowest of all regional markets.
77,200 sq m of office space was added to Tricity’s stock across three projects last year. The growth in new supply was largely driven by the two buildings of the Olivia Business Centre (Tricity’s biggest office complex): Olivia Prime A (28,000 sq m) and Olivia Star (45,700 sq m), the latter being the region’s tallest building.
KEY LEASE TRANSACTIONS IN TRICITY IN 2018
|
Building |
Tenant |
Sq m |
Type of lease |
|
Olivia Prime A |
SII |
10,100 |
Pre-let + New deal |
|
Olivia Point and Tower |
Bayer |
5,800 |
Expansion + Renegotiation |
|
Waterside |
LPP |
5,200 |
Expansion + Renegotiation |
|
Garnizon - Hiro |
Nest Bank |
5,000 |
Pre-let + New deal |
|
Olivia Prime A |
Epam Systems Poland |
4,200 |
Pre-let + New deal |
|
Olivia Star |
Nordea |
4,100 |
Expansion |
|
Olivia Prime A |
Arrow |
4,000 |
New deal |
|
Olivia Prime B |
Epam Systems Poland |
3,700 |
Pre-let + New deal |
|
BCB Business Park II |
ADT Group |
3,000 |
New deal |
|
Olivia Star |
Ricoh Polska |
2,700 |
Expansion |
“The Tricity office market reported an 11% growth in its total office stock last year with Gdańsk Oliwa remaining the key focus. In the coming years, however, another business hub is likely to emerge in the former dockyard area, the so-called Young City in Gdańsk, after building permits are secured for new projects by developers such as Echo Investment, Cavatina and RWS. However, some projects may be pushed back to later because construction details will have to be agreed with the regional heritage conservation office. On the demand side, the Tricity office market is dominated by IT companies. Against the backdrop of infrastructure improvements and the ease of travel, Tricity is seeing a considerable growth of interest from Scandinavian firms operating in IT, freight forwarding and international transport sectors,” says Adam Schroeder, Associate, Office Agency, Cushman & Wakefield.
In 2018, total leasing activity hit 84,400 sq m, down by 25% on the previous year’s level and close to the 2013-2017 average (+2%). The weaker occupier activity was due to a limited number of new office projects. This is expected to change in the coming years with a gradual increase in office developments in Gdańsk Oliwa and the former dockyard areas in Young City Gdańsk.
Tricity’s office rents averaged EUR 14.00/sq m/month in 2018.
