At the end of June 2024, the total supply of modern office space in Wroclaw reached 1.37 million sqm. About 36% of the space is located in the city center, making this zone the key office area in the capital of Lower Silesia. In the first half of the year, 32,400 sqm of new office space was put on the market, a slight 1 percent decrease compared to the same period last year. Two completed office projects – Quorum Office Park A (18,200 sqm) and B10 Office (14,100 sqm) – were responsible for the new supply.

At the end of the analyzed six months, there was about 41,600 sqm of modern office space under construction across four projects. This is a significant decrease of 72% compared to the same period last year. Most of the stock under construction, or 68% (28,600 sqm), is located in the southern zone of the city, while the remaining 13,000 sqm is being developed in the western zone.

– Currently, the largest new office development under construction in the capital of Lower Silesia is Swobodna Spot. Ultimately, Echo Investment will erect two office buildings on the Powstańców Śląskich estate, and construction of the first one started a year ago in October. In the most optimistic scenario, there will be about 90,000 sqm of modern offices in Wroclaw by the end of 2026. This is important information for the city, which for years has been attracting investors not only with its business potential, but also with its educational, entertainment and cultural offer. The strength of Wroclaw can be seen in its unquestionable best place in this year’s ranking prepared by “fDi Intelligence”, in the category of medium-sized cities of the future –

says Jaroslaw Pilch, Head of Tenant Representation, Office Agency, Office Agency, Savills.

One of the significant challenges faced by the regional market was a decline in demand, with total occupancy at 49,900 sqm, down 43% year-on-year. At mid-year, 251,500 sqm of vacant offices were available in Wroclaw, which translated into a vacancy rate of 18.2%. That’s up 210 basis points year-on-year. The vacancy rate varied by zone of the city: the highest percentage of vacant offices was recorded in the center, where vacancy reached 25.8%. In the western zone, the rate was 17.7%, while the lowest vacancy rate, 8.7%, was registered in the southern zone.

It is noteworthy that despite the challenging market situation, Wrocław recorded the highest net absorption rate among regional cities in the first half of 2024, which amounted to 27,500 sqm. The dominant sector represented by tenants remains IT, which accounted for 46% of leased space. The manufacturing sector also played an important role with 19%.

– Renegotiations dominated the first half of the year in Wroclaw, accounting for as much as 54% of all signed contracts. New contracts, including those signed by space owners, accounted for 42% of demand. It is also worth noting that no pre-leases were recorded during this period, which still indicates a cautious approach by tenants –

Dorota Koscielniak, head of the Tenant Representation Department at Savills Poland, said.

The expert stresses that an important factor shaping the dynamics of the Wroclaw market is the hybrid working model. Companies are increasingly looking for smaller offices, averaging 300 to 500 sq. m., while leases for offices from 800 to 1,000 sq. m. are becoming rare in today’s reality and are considered among the larger ones.

In the face of dynamic market changes, an increase in rents for the best office projects in Wroclaw has also been observed. The level of monthly rates at the end of the first half of the year oscillated between EUR 14.00 and EUR 16.50 per sqm.

As Dorota Koscielniak comments – Wroclaw remains a key office center, and despite many market challenges, we see interest from tenants. The largest among companies from the IT sector, but also from the manufacturing sector. We expect the market to stabilize in the coming quarters, and newly emerging strategic projects by 2026 will significantly strengthen the office offer.