"From the employers' point of view, Kraków, Katowice and Wrocław are very attractive job markets among others from the BSS sector. Krakow tempts with multiculturalism and an attractive lifestyle of a European city, Wrocław focuses on information technology and creates a start-up friendly environment. On the other hand, short distance between those locations, agglomeration potential of Silesia and a well-developed infrastructure make Katowice a dynamically developing and modern business center. All what distinguishes the three cities is a solid academic culture, strong emphasis on infrastructure development and an increasing number of green zones in central points. "- Kamil Tyszkiewicz, Director at the Tenant Representation Department of CBRE

Looking at the number of investments carried out in the region, it can be clearly seen that it remains extremely interesting for developers all the time. According to the latest report of the CBRE "Poland Office Destinations 2019", Krakow currently has 1.26 million sq meters of already existing office space in its offer. In the case of Wrocław, it is over 1 million sqm. On the other hand, the Katowice office market has 519,000 sqm. In addition, there is over 200,000 sqm currently under construction in Krakow alone that is to be completed in 2019 - CBRE experts say.

In 2018, the largest demand for office space was noted in Kraków, where 211,000 sqm were leased  (in comparison to Wrocław - 163,000 sq m and Katowice - 38,000 sq m). What's more, the office space in Krakow, Wroclaw and Katowice has a low level of vacancies (between 8.5 and 9.7%), similar to the national average. However, each of these markets faces the challenge of growing demand for premium locations. Tenants are looking for offices in the city center with the appropriate infrastructure and service offer, because in this way they can attract or retain the greatest talents of a given industry.

Kraków without a defined business center

Krakow does not have one specific business center, so that rental offices are located in different parts of the city. Due to the great conditions (attractive rents, access to qualified staff, good access) offered by the capital of the Lesser Poland the largest number of companies from the BPO and SSC sector have been located in Krakow from among all Polish cities. Importantly, Kraków has increased its employment in the hi-tech sector by 66% in the last 10 years. This probably affected the high position in the CBRE ranking "EMEA Tech Cities", which identifies the largest technological clusters in Europe, the Middle East and Africa, and those with the greatest opportunities for dynamic development. In the list of cities with the largest growth potential in the technology sector, apart from Krakow, Katowice and Poznań were also included.

"Krakow, as the most mature market, still leads as the most interesting for tenants looking for attractive locations for their shared services centers. More Western companies develop their business in the capital of the Lesser Poland, mainly due to the high supply of qualified staff and the ubiquitous knowledge of realities prevailing in the BPO / SSC sector. " - Kamil Tyszkiewicz, Director in the Tenant Representation Department of CBRE

Wrocław increases its role

A wide range of office spaces is one of the many advantages of Wroclaw. The most convenient locations for business are the limits of the city center, where the latest buildings are located, including Sagittarius Business House and Retro Office House. In the entire Wrocław, tenants have more than 1 million sq m. office space, and another 150,000 are under construction. What's more, Wrocław offers access to well-trained employees, graduates and specialists with experience primarily in the field of information technology, finance, and the sector of shared services

Katowice with BPO and SSC potential

Katowice office rental and the office market is becoming more and more popular with international companies and tenants, including the BPO and SSC sector. 66,000 sqm modern area is currently under construction, including 30,000 sqm to be commissioned by the end of year 2020. An attractive incentive is rental offices with relatively low rent rates compared to other cities in Poland. The region is made up of large urban agglomerations, including Katowice, which, apart from favorable lease terms, can offer a large number of students, graduates and experienced employees.

The full version of the "Poland Office Destinations 2019" report is available on the CBRE website.


Source: CBRE