According to OnOffice, a report published by Predibisa and which analyzes the performance of the Greater Porto office market
No first half of 2020 is Greater Porto office market registered a 38% increase in occupancy volume, compared to the same period. According OnOffice data, report published by Predibisa, despite a smaller number of transactions in the sector (drop of 4%), the average value contracted per operation increased, which translated into a increase in the total value of contracted office area, settling in 28.381 m². As in the first quarter of the year, the Predibisa was leader in number of operations and in the volume of area placed. The consultant placed 14.403 m², about 51% of the total area absorbed in Greater Porto, having secured half of the transactions recorded in the semester.
Despite the second half of the semester being guided by the pandemic context, the office market in Greater Porto remained dynamic, giving positive signs, such as the increase in large-scale operations and the increase in demand from international companies. Two thirds of the transactions carried out involved multinationals and 38% of them were motivated by the arrival of new companies in the region, which confirms the attractiveness status that Porto has at the international level in attracting new ones. players.
Allied to these good dynamics that the sector has been registering since 2015, is associated with a high demand for spaces that exceeds the current offer available in the region. Currently, Greater Porto has pipeline about 86.000 m², whose entry into stock it is expected to occur by the end of 2021 and which will, in a way, bring the relationship between supply and demand closer, however insufficient to close the existing gap.
Graça Ribeiro da Cunha, Head of Predibisa for the Office area, underlines: “The good performance of this first semester, following what has been happening in recent years in the Greater Porto office market, is due to the conclusion of business that had already started in the previous year. As a rule, large companies plan to set up in new countries or even to expand, well in advance. The worldwide pandemic has taken care of this whole process, thus putting some businesses in stand-by, still with no indication of a date for its development. It is our opinion that this slowdown may be reflected in the coming months. “
Area expansion motivated 50% of the take-up of offices
Activity in the Greater Porto office market recorded a total of 24 transactions in the first half of the year and 28.381 m² of total area occupation in the region. Compared to the same period last year, despite the lower number of transactions (minus one transaction), there was a 38% increase in the volume of contracted area (a total of 7.881 m² were added), which translates into an increase in the area average contracted per operation, which went from 820 m² (2019) to 1.183 m² (2020). This variation is related to the fact that four operations registered contracted areas above 3.000 m², three of them mediated by Predibisa.
The city of Porto absorbs around 65% of the area placed, with Boavista's Central Business District (CBD) leading the way. As in the same period in 2019, CBD is the so-called “hot zone” of the office market, registering the largest number of operations (eight in total) and the largest volume of absorbed area, with around 33% (9.347 m²) . Next are the Matosinhos area, with 20% of the area placed, and in reverse, the cities of Vila Nova de Gaia and Maia, areas with less area absorption in the semester, 10% and 6%, respectively.
In terms of absorption by contracted area interval, ten of the registered transactions are operations with gross leasable areas greater than 500 m², which corresponds to approximately 91% of the area placed, and of these ten operations, four are large transactions with areas more than 3.000 m². Six operations comprise areas between 200 m² and 400 m², about 6% of the placed area and eight with areas below 200 m², which corresponds to 3% of the total.
Companies linked to the TMT's & Utilities were the most active in the first half of the year, concentrating a quarter of demand and celebrating a total of six transactions. This was followed by “Seviços Empresas” and “Other Services”, both with a share of 21% each.
In turn, the “Business Services” sector was responsible for the highest percentage of occupation, 31% of the contracted office area, followed by “Other Services”, with 27%, and the TMT's & Utilities with a 23% share.
Throughout the first half of the year, the main motivating factor for companies in the search for new office spaces in Greater Porto was mainly focused on the reason for expanding the area, corresponding to 50% of take-up. In the first quarter, this trend had already occurred, which contrasted with the data for the same period, where the expansion of area had been responsible for only 17% of the take-up of offices.
The remaining 50% are related to the reason for changing facilities (32%) and the installation of new companies in the region with 18%.