The overall supply of office space remained at 6.46 million sq. m by the end of 2020. However, supply will need to be reclassified in line with changing building requirements with regards to health and safety. Take-up reached approx. 89,514 sq m in the fourth quarter taking the total to 329,000 sq m in 2020. Take-up volume in the fourth quarter recorded a similar level compared to the previous quarter and decreased by 12% compared to the year before. 55% of leasing transactions in 2020 were recorded in the second half of the year. Meanwhile, 40% and 31% of all deals by size and number, respectively were lease renewals in the final quarter indicating a decrease by number for new leases compared to previous quarter and year.
New curfews and restrictions starting from November weighed on retailer activity in the fourth quarter, where occupier demand was already relatively low in the third quarter. Considering the ongoing lower retailer expansion in 2020, demand may pick up in the recovery period as of next year. Furthermore, expansion plans of both local and international retailers may accelerate starting form the first half of next year.
According to available data, leasing activity for warehouse space recorded a distinct increase by more than twofold comparing to the year before and recorded approx. 48,329 sq m in the fourth quarter taking the total to 338,000 sq m for 2020. Leasing activity was at similar levels in the last two quarters. The significant acceleration recorded in the first half of 2020 with approx 70% of the deals by size as an outcome of urgent demand for short-term warehouse requirements due to the pandemic and in line with the supply chain management. Despite the slightly slower increase of transaction volume in the second half of the year a significant hike in leasing activities was recorded in 2020. Ongoing demand for warehouse is likely to remain in the short to medium term.