Cookie Use Notification

This site uses cookies to provide you with a more responsive and personalised service.

By using this site you agree to our use of cookies as set out in our cookie notice. Please read our cookie notice for more information on the cookies we use and how to delete or block the use of cookies.

GROWTH OF THE SZCZECIN OFFICE MARKET IS SET TO GATHER PACE IN 2019

Krzysztof Misiak

International Partner

Phone +48 601334629

Contact me

Global real estate services firm Cushman & Wakefield summarises the Szczecin office market at year-end 2018.

The Szczecin office market reported the second consecutive year of strong absorption – net office absorption was nearly four times the new supply, say Cushman & Wakefield’s analysts. Tenants therefore need to wait until new projects deliver a total of 48,000 sq m.

Szczecin is one of Poland’s smallest office markets. Its office stock amounts to nearly 160,000 sq m of Class A office space, most of which is located in the city centre. 2018 witnessed only one office completion: Black Pearl, which provided 2,350 sq m. In 2019, 46,000 sq m of office space is expected to be delivered at such projects as Posejdon, Cukrowa Office, Stettiner Business Center and Dohrn’s House while 2020 will see completion of the Hanza Tower.

Building

Tenant

Area (sq m)

Lease type

Piastów Office Centre A

IAI

2,000

Expansion + Renegotiation

Piastów Office Centre A

Arvato Polska

1,850

Renegotiation

Oxygen

Macrobond Financial

1,700

New deal

Brama Portowa II

Confidential

1,200

New deal

Oxygen

DGS

1,000

Expansion

At the end of 2018, Szczecin’s net absorption hit nearly 10,000 sq m, almost four times the annual supply for the second consecutive year. This pushed the city’s vacancy rate down to 5.1% at the end of December 2018, which represented a 4.9 pp decrease year-on-year. Szczecin currently has the lowest vacancy rate of all regional city office markets.

“Szczecin’s growing popularity stems from improvements to the region’s road infrastructure (construction of the S6 expressway to link Szczecin, Tricity, Koszalin and SÅ‚upsk), and sea and air connections. The city attracts largely German and Scandinavian IT firms. The development pipeline comprises 48,000 sq m, nearly half of which will be delivered at Posejdon, an office, retail and service scheme. This year will also witness completion of the Dohrn’s House revitalisation project, located close to the Main Railway Station and offering nearly 3,500 sq m of Class A office space,” says Adam Schroeder, Associate, Office Agency, Cushman & Wakefield.

In 2018, prime office rents stood at EUR 13.30/sq m/month.