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News Release

Warsaw

Record-breaking investor activity on office markets outside Warsaw

Investors spent nearly €800 million on office buildings in major agglomerations outside Warsaw. For the first time in the market's history, the office investment volume recorded on regional markets exceeded the volume registered in Warsaw.


According to international advisory firm JLL, the volume of investment transactions concluded on the Polish office market in 2015 amounted to over €1.27 billion. Regional markets accounted for nearly €800 million of this total.

Sławomir Jędrzejewski, National Director, Office and Industrial Investment at JLL, comments: "The volume of investment transactions concluded on major office markets outside Warsaw was nearly €800 million. This means that for the first time in Poland's investment market, the volume of office sales and acquisitions outside the capital city exceeded the office volume registered in Warsaw. Kraków accounted for the largest volume – almost €260 million".

This excellent result is a combination of numerous factors such as a limited supply of office buildings available for sale in Warsaw, the availability of attractive investment products on regional markets including high-quality office buildings secured with long-term lease agreements, along with higher yields compared to Poland's capital city.

"According to our analyses, prime office yields are at 6.25% in Kraków and Wrocław, 7% in Tri-City and Poznań; 7.5% in Katowice and Łódź, with the possibility of compression in 2016", adds Sławomir Jędrzejewski.

Selected 2015 office investment transactions outside Warsaw

SchemeCityPrice (in € million)VendorBuyer
DominikańskiWrocławApprox. 117SkanskaUnion Investment
Bonarka for BusinessKrakówconfidentialTriGranitTPG
Skanska portfolioKatowice, KrakówApprox. 100SkanskaNIAM
Enterprise ParkKrakówApprox. 66AvestusTristan Capital Partners
Green HorizonŁódź65SkanskaGriffin Group

The largest transaction of a single office asset outside Warsaw was Dominikański in Wrocław (€117 million), while the largest portfolio deals included the acquisitions concluded by NIAM and Griffin Group (ca 100 million each).

Tomasz Puch, Regional Director, Head of Office and Industrial Investment at JLL Poland, concludes: "The interest among investors in major office markets outside Warsaw remains high. Nevertheless, it is worth remembering that a significant number of modern office projects changed hands in 2015, and as a result, the supply of investment products available for sale have decreased. However, according to our analyses, the volume of investment deals on major office markets outside Warsaw can achieve a strong €500 million in 2016. We can expect transactions to take place in all major cities".

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In 2015, experts from JLL were involved in numerous office investment transactions on regional markets such as: Dominikański in Wrocław (on behalf of the purchaser - Union Investment), Baltic Business Center in Gdynia (on behalf of the vendor – BPT Optima), Millenium Plaza in Katowice (on behalf of the vendor - Aviva), Kazimierz Office Center in Kraków (on behalf of the vendor – GTC), West House 1B in Wrocław (on behalf of the vendor– Archicom) and Andersia Business Centre (on behalf of the purchaser – PHN).