Poznań is constantly evolving. This is mirrored by the excellent results recorded on the city’s office market. New thriving companies are establishing operations in Poznań while firms already present in the city are expanding their business. All of these factors are boosting demand in Poznań for modern office space.
The city of Poznań is a renowned academic centre, and is a place with a high standard of living, a developed labor market, excellent transport infrastructure and increasing office stock. These factors have made the city one of the most important business locations in Poland.
“Poznań is an ideal city for business - we are one of the top three mid-sized, European cities for Business Friendliness according to FDI Magazine. However, the best recommendation for the excellent conditions in our city are the companies that have opted for Poznań. Global brands such as Franklin Templeton Investments, GSK Services, MAN Accounting Center, the Roche Global IT Solutions Center and Sii are just a few of the many investors who conduct their business in the city and offer favorable opportunities for professional development. Furthermore, we continue to work on the development of the city's infrastructure and investment incentives. As a result we are on the short list of global companies looking to establish operations in new locations”, says Jacek Jaśkowiak, the Mayor of Poznań.
Poznań's office market on the up
Poznań is the sixth largest office market in Poland with modern office stock totaling almost 455,000 sq m. The market is rapidly developing with forecasts for the market continuing to be optimistic. The under construction pipeline means that Poznań will cross the 500,000 sq m stock mark next year.
A record-breaking 78,000 sq m of space was leased last year. Furthermore, the largest lease transaction in 2017 - a deal for 25,500 sq m in Nowy Rynek complex - was concluded in Poznań. The excellent results of the office market stem from the attractiveness of the city, which is one of the most important locations for companies from the business services sector. Prospects for future development are also looking very good with business activity in the city constantly increasing, both from firms present in Poznań and newcomers. This, in turn, will further boost construction activity.
Increased interest in Poznań from corporates have resulted in a steady decrease in vacancy rates across the city. It currently stands at below 9%, which is one of the lowest rates in Poland. Such market conditions, coupled with limited availability of under construction product means that prime headline rents have increased to 13.6-14.5 EUR sq m / month.
In recent years, Poznań has earned a reputation for being a center for entrepreneurship and innovation. The high quality of life, its location and the very positive assessment of investment conditions have been key in the city's success.
“Poznań is one of the major locations for the business services sector in Poland, which in practice means that the city offers a wide range of prospects for professional development. This, combined with the improvement in salaries over the last few years have allowed the city to attract more and more workers not only from Poland, but from all over the world. According to the latest Randstad Employer Brand Research report, employees pay the most attention to attractive earnings, stable employment and a friendly atmosphere when choosing an employer”, comments Edyta Janas, Business Development Director at Randstad Sourceright EMEA.