Although the demand remained at a similar level as in the previous year, we can see clear changes in the structure of lease contracts. In 2020, new contracts and relocations accounted for 45 percent, in 2021 already 59 percent. With transactions for nearly 22.5 thousand sq m, in which we advised our clients, the two largest are new contracts. I mean the lease of 8.6 thousand. sq m in Podium Park A by Heineken Global Shared Services and 5.3 thousand. sq m in Brain Park by Pepsico Global Business Services - enumerates Anna Galicka-Bieda, partner and regional director of Colliers Krakow.
The largest transactions concluded in 2021 also include the renewal of the contract of a client from the financial sector in the Kapelanka 42a facility (15.6 thousand sq m) and a customer from the service sector in the Kazimierz Office Center (12.8 thousand sq m).
In 2021, over 60,000 new jobs were added to Kraków. sq m offices, which is the second result after the Tri-City among regional cities. The largest completed investments include, among others Tertium Business Park B (13,400 sq m), Ocean Office Park A (13,000 sq m) and Equal Business Park D (11,400 sq m). Despite the reduced new supply ratio, the capital of Małopolska remains, after Warsaw, the most powerful office market in Poland with nearly 1.62 million sq m. surface.
The decrease in new supply, which we recorded in 2021, is due to lower demand compared to previous years. In the next two years, the situation should improve with the commissioning of new investments with a total area of approx. 190,000 sq m. sq m This is a sign that Krakow is still an attractive choice for investors, despite the increased vacancy rate and reduced demand. However, the war on our eastern border makes it difficult to predict how the situation on the real estate market will develop in the coming months, notes Anna Galicka-Bieda.
In Krakow, the vacancy rate reached 16.1%, which means that we are currently dealing with a tenant market.
The market favors companies willing to sign traditional five-year or even longer leases. In such a case, tenants can count on very favorable commercial conditions, so this is a good time to verify the market - says Adam Florczyk, senior associate in the office space department at Colliers in Krakow.
The growing interest in flexible lease terms is also reflected in the demand for serviced offices and spaces available for sublet.
Companies now readily use this option for short-term surface protection. Apart from traditional sublet agreements, there are situations in which sublet becomes an opportunity to rent space for new tenants who sign a long-term lease agreement directly with the landlord - says Adam Florczyk.
