2020 was a difficult year that brought with it numerous challenges for Poland’s office sector. As expected since the onset of the COVID-19 pandemic, the slowdown on the office market is evident, however it seems that it won’t be permanent. As far as any decision-making in the regions is concerned, developers and tenants alike exercised a greater degree of caution, which was reflected in the volume of leases signed. The 580 000 sqm in respect of which agreements were concluded is a result lower than that achieved in 2019 by more than 100 000 sqm.
The increasing popularity of the flexible work model provided us with the confidence that offices are going to remain a necessary element of business operations. Following the many months of remote work, maintaining maximum efficiency is becoming a challenge. We have the need to exchange information with other people on a permanent basis and we long for everyday human interaction, and all this in a professional space dedicated to our work needs. This is why an office will always be the focal point for any organization. Naturally, it can be expected that tenants will look for more flexibility in terms of the length of the term of the lease, the size of the space to be occupied, and the option to sublease their office space
Mikołaj Laskowski, Head of Office Agency at BNP Paribas Real Estate Poland
The previous 3 years on the regional office markets brought with them record-breaking tenant activity levels, and thus we all grew accustomed to positive results. In turn, a slowdown was experienced in 2020, however it seems that the aftermath will not be permanent. The market situation might change depending on how the health situation unfolds, the pace of vaccinations, the measures and restrictions introduced by the government, as well as the changing tenant preferences. The coming months will bring an answer to the most pressing question of all: what’s the market going to be like in 2021?
Klaudia Okoń, Consultant, Research and Consultancy Department, BNP Paribas Real Estate Poland