Record-high inflation is sending office rents ever higher on regional markets, weighing heavy on tenants. The overall vacancy rate edged up by 0.6 pp in Q1 2023, with a supply gap becoming imminent. Despite these headwinds, gross office take-up surpassed pre-pandemic levels and leases are gradually becoming longer.
TAKE-UP, SUPPLY AND RENTAL GROWTH
AGAINST THE BACKDROP OF RISING COSTS
A supply gap is fast approaching in the regional markets. Tenants have noticed this and are increasingly opting for leases for six to seven years. Not only do longer leases help secure the right workspace, but they also bring financial savings. It is even more significant as tenants are making decisions against the backdrop of rising occupancy and fit-out costs.
says Dorota Fabisiak, Associate Director, Office Agency, BNP Paribas Real Estate Poland.
The past three years saw many changes take place on the office market. Office spaces are being reinvented as both employers and employees are adapting them to new working models such as remote or hybrid working. Offices are competing with employees’ homes and are increasingly successful at this by offering tools and solutions that are not normally found at home while providing a comfortable work environment.
says Agnieszka Witkowska, Consultant, Landlord Representation, Office Sector, BNP Paribas Real Estate Poland.