Currently more than1 million sq. m of modern office space is at the construction stage. A growing number of office completions to be registered in 2012.
According to the “Office Market Profile Poland” by Jones Lang LaSalle and Hays Poland.
Warsaw, 20 December 2011 – Jones Lang LaSalle summarised the office market trends in Warsaw and the other main Polish cities in the light of current economic outlook for Poland, infrastructural investments and the market situation in the shared services sector, which is considered strategic for the development of the Polish economy. The dedicated section on the labour market and the quality of life in major business locations in the country presented by Hays Poland, the co-author of the report, allows for detailed comparisons across the key office markets.
“Poland is recognized worldwide as a market offering well educated people and the highest class specialists; therefore, more developed processes, such as KPO and R&D, are being set up and transferred to major Polish cities”, said Jadwiga Naduk, Head of Research & Consultancy at Hays Poland. “The large number of students with good and diversified language knowledge, including niche languages, makes Poland an important BPO/SSC (outsourcing and shared service centres) destination in Europe,” added Naduk.
Set out below are the key report findings:
- Currently more than 1 million sq. m of modern office space is at the construction stage in the major cities of Poland, of which 600,000 sq. m in Warsaw.
- Wrocław and Szczecin remain the most active markets outside Warsaw in this respect, with respectively 103,000 sq. m and 88,000 sq. m of modern office space under construction.
- The supply gap, which characterizes predominantly Warsaw and Wrocław, results from a limited development pipeline in 2009 and 2010.
- Warsaw (440,000 sq. m leased), Kraków (69,000 sq. m leased) and Wrocław (36,000 sq. m leased) are clearly taking a lead in respect of occupier activity in 2011 (Q1 to Q3).
- We expect upward pressures on prime rents in Warsaw, Krakow and Wrocław driven by the strong demand.
- By the end of 2012, the widest choice of office lease options for tenants looking for bigger modules (of approximately 1,000 sq. m) will be offered in Warsaw, Tri-City and Krakow. Average availability of the modern office space will be on offer in Wrocław, Poznań, Łodź and Katowice. The group of cities with the immediate leasing opportunities of large office modules also includes Szczecin and Lublin.
- The road improvement and infrastructure projects that are currently underway in each of the Polish regional cities will positively influence the office market and create new locations for business.
Julita Spychalska, Associate Director in Office Department in Jones Lang LaSalle comments on the above research findings “2011 saw significant developer activity across Poland with more than 1 million sq. m of modern office space at construction stage. In Q1 to Q3 2011 a total of 154,000 sq. m was delivered to the market in 21 office developments (of the average office space of 7,350 sq. m). We expect the market to recover in 2012 with 540,500 sq. m planned for completion in 52 office buildings (with an average office space of 10,400 sq. m).”