A growing group of business owners positively assesses Krakow's business potential - according to the report 'Krakow's investment potential'. Their scientific potential and the attractiveness of their living places attract the most to the capital of Lesser Poland (8.6 points and 7.7 points on a 10-point scale, respectively).
The report describing the Krakow market is part of the broader research project "Business Environment Assessment Study" carried out by Antal in cooperation with Cushman & Wakefield and Vastint. The respondents - persons managing Polish enterprises - were asked about places in Poland where they would be willing to locate their investments. Each of the regional cities has been listed at least once. Krakow was in fifth place among the most frequently considered places in terms of new investments.
Krakow is one of the leading research centers in Poland
Entrepreneurs are not afraid of the lack of appropriate human resources in the future. Educational potential understood as the availability of future employees took first place among the assessed aspects at 8.6 points. on a 10-point scale. This was due to two indicators - higher education facilities (8.8 points) and vocational education / secondary schools facilities (8.3 points). Almost 150,000 study in Małopolska students. At the same time, about 50,000 graduate from studies in Kraków each year. graduates - these are huge resources in the current labor market, which is struggling with a deficit of employees. The most specialists are educated in the field of engineering, finance and IT.
Krakow is the best place to live for future staff?
Krakow is primarily a culture of culture. The respondents considered the city's most important asset to be a rich cultural offer (8.9 points), which organizes the largest Krakow festivals and events in the fields of music, theater, film, fine arts and literature. The commercial offer (8.4 points) and security (8.3 points) as well as the educational offer (8.2 points) were also positively assessed. As part of the cultural offer, the largest Krakow festivals and events in the fields of music, theater, film, fine arts and literature are organized. Festivals that are worth mentioning are the Jewish Culture Festival, the International Music Festival in Old Krakow, the Street Theater Festival, the Divine Comedy International Theater Festival, the Polish Music Festival and Krakow Theater Miniatures.
Big competition is an advantage for the future investor
A company that thinks about the location of its business in a selected city always checks how much competition there is. In the case of Krakow, respondents rated this aspect at 7.3 points. The indicator was market saturation with competing companies, where 0 means no competition, and 10 - virtually all competing companies are present in the location.
Krakow is perceived as a favorable place to conduct business and investment activities thanks to numerous scientific and research units, a qualified workforce and successively implemented investments. There has been talk of market saturation for a long time, especially in the SSC / BPO sector, but subsequent successful business projects testify to the still existing development potential. This situation is also favored by significant relocation potential in the context of employees from across the western border, for whom Krakow is the first choice because of their high tourist position.
- Entrepreneurs are increasingly choosing Krakow as a place for future investments. The city's advantage is its well-qualified staff and many students who provide permanent access to educated employees. The dynamic business development and a large number of companies already present on the market translate into the growing staffing demand and intensive exploitation of the candidate's market. In addition to the supply of local graduates, interest in Krakow from candidates from other parts of the country is increasing. An important relocation argument is not only the cultural offer of the city, but the dynamically developing labor market - says Artur Skiba, President of Antal.
Over 1 million sq m modern office space
For several years, Krakow has been a leader on the office space market among regional cities in Poland. According to the Antal report - the availability of office space in Krakow was rated at 7.2 points. The study participants also distinguished high quality of available space (7.8 points) and easy access to the office by public transport (7.6 points).
- Over the past ten years, the Krakow office market has grown nearly five times. Companies planning development in the capital of Lesser Poland appreciate above all the availability of talent and the city's recognition as a top business destination. By the end of 2019, Krakow will offer over 1.4 million square meters, which confirms its dominant position on the regional office space market. New and planned office investments are being filled by new tenants. With their growing
Source: Cushman & Wakefield
Another excellent year for the investment market, record office lease transactions in Warsaw and the burgeoning growth of alternative asset classes - these are some of the Polish commercial property market highlights of 2019. Real estate advisory firm Savills forecasts that next year the market’s performance will depend on the health of the global economy, and key developments will include the completion of spectacular office towers and mixed-use projects.
Global real estate services firm Cushman & Wakefield has been appointed as sole letting agent for Riverside Park and Grójecka 5 in Warsaw, and Arkońska Business Park in Gdansk. Cromwell Property Group acts as the property manager for the buildings.
“Riverside Park, Grójecka 5 and Arkońska Business Park are well-established schemes on their respective local office markets. Each offers high-quality office space in well-connected locations and at competitive rents,” said Anna Górska-Kwiatkowska, Partner, Landlord Representation, Office Agency, Cushman & Wakefield.
Riverside Park, designed by AukettFitzroyRobinson, is an office complex located near the intersection of Łazienkowska Thoroughfare and Wisłostrada in Warsaw. Its two twin buildings offer 12,700 sq m of class A office space spread over six aboveground floors.
Grójecka 5, located close to the very centre of Warsaw, offers 11,000 sq m of class A office space and enjoys easy access to many bus and tramp stops, a station of the Warsaw Commuter Railway (WKD) and a regional rail operator Masovian Railways. Rondo Daszyńskiego metro station is one stop away from Grójecka 5. In addition to office space, the building also houses ground-floor services.
Arkońska Business Park is a modern complex of five class A office buildings with an area of 11,000 sq m, located in Gdansk, close to Lech Wałęsa Airport, the University of Gdansk, Hala Olivia and a line of the Pomeranian Metropolitan Railway. In addition to a 135-space car park, it offers 20 surface parking spaces. It was designed by APA Wojciechowski.
“We appointed Cushman & Wakefield as letting agent for our three office buildings as we share similar values and look forward to achieving the best possible outcomes. We also value the experience and full professionalism of Cushman & Wakefield’s experts who will make sure that each building maintains a high occupancy rate,” said, Anna Szymańska, Director of Office Leasing at Cromwell Property Group.
Cromwell Property Group is a real estate investor and manager operating on three continents, with a global investor base. As at 30 June 2019, Cromwell had total assets under management of €7.5 billion of across Australia, New Zealand and Europe.
In Europe, Cromwell manages €3.9 billion of real estate assets across a variety of funds and mandates, encompassing approximately 205 assets and 3,000 tenants. Cromwell’s strength lies in its real estate expertise drawn from 200+ people in 20 local offices across 12 European countries.
Source: Cushman & Wakefield
European office take up is forecast to reach 9.2 million sq m by the end of 2019, down marginally by 4% from 2018’s end year volume, according to Savills latest research. A shortage of good quality, available space across Europe’s CBDs is limiting occupiers’ choices as average vacancy rates dropped from 6.1% to 5.4% over the past 12 months.
Savills has been appointed a co-exclusive agent for leasing office space in Harmony Office Center II. The owner of the property has therefore begun the recommercialisation of the scheme.
Unity Group, IT services provider, signed an agreement for the lease of over 800 sqm of office space at Principio office building in Kraków. The company will be relocated to its new office in Q1 2020. Eko-Park, owner of the premises, was represented by Knight Frank, international real estate consultancy.
Polish cities – office destination
The office market in Poland is constantly growing, the total stock of modern office space in the H₁ 2019 exceeded 10 million sq m. Although the capital is still leading in terms of demand for office space, which in the first half of this year amounted to just over 400,000 sq m in this city, regional markets are also gaining in importance.
Cracow and Wroclaw are office locations that can boast over 1 mln sq m of modern office space. Demand for offices in six main locations except Warsaw was 292,500 sq m. The demand for offices from investors site means that developers are very active throughout the country, which is reflected in the constantly growing supply not only in Warsaw but also on regional markets.
In the H₁ 2019, more office space was delivered in Cracow, Wrocław and the Tri-City than on the capital market, in each of these cities the new supply amounted to over 90,000 sq m. Currently, the most space under construction is in Katowice (250,000 sq m), Wroclaw (210,000 sq m) and Cracow (190,000 sq m). In Warsaw under construction is over 730,000 sq m of modern space.
Warsaw
Warsaw is the country’s largest business centre and the largest office market in Poland. The stock of modern office space is 5.5 mln sq m.
The financial and insurance sectors, as well as companies from the IT sector, have had the largest share in demand for several years. In addition, the city has recently attracted large numbers of coworking companies that lease a significant part of space in newly emerging projects.
The vacancy is at its lowest level since 2012 currently at 8.5%, with only 5.6% in the city centre.
In 2020 can see over 400,000 sq m scheduled to be delivered. Many of these are office towers: The Warsaw Hub, The Unit, Skyliner and Varso (the tallest building in CEE).
Cracow
Cracow is the second largest office market in Poland. Over the past ten years, the city’s office space resources have increased almost four times, which has made this city the most dynamically developing regional market.
Currently, Cracow is a leader among regions, where is the most office space under construction.
Take up in 2017 and 2018 was at 150,000 sq m p.a. This year can be better because in H₁ 2019 demand exceeded 135,000 sq m.
60% of modern office space in this city
Almost 60% of modern office space in this city is occupied by the modern business services sector, employing 70,000 employees.
Wroclaw
Currently, Wroclaw is the third largest office market in Poland and offers over 10% of the office space available nationwide.
The total stock of office space in this city exceeded 1,07 mln sq m.
Wrocław is in the third position in terms of the number of shared services centres, right after Warsaw and Cracow.
Tri-City
The Tri-city is the fourth largest office market in Poland, right after Warsaw, Cracow and Wroclaw.
Tri-city will break 1 mln sq m of modern office space within this year. Almost 100,000 sq m were added to the market in the last 18 months.
Tri-city for office location is very often chosen by companies from the SSC / BPO and IT industries. The market largely owes its position to Scandinavian companies, which invest intensively here, including due to convenient air connections with the Tri-City.
The city is the 2nd most attractive destination for relocation in Poland.
Katowice
Katowice is in the fifth position on the office market in Poland. The total stock of nearly 530,000 sq m.
In 2017 and 2018, demand amounted to over 30,000 sq m. The year 2019 promises to be record-breaking because the same number of sq m has already been rented in the first half of the year.
The vacancy rate has been decreasing since 2016, currently at 7.5%.
Poznan
Poznan ranks sixth among office markets in Poland, after Warsaw, CraCow, Wroclaw, the Tri-City and Katowice.
Unfortunately, tenants in the last two years have been struggling with the low availability of modern office space due to the limited supply of new projects. This year situation will change, as more than 90,000 sq m are expected to hit the market.
Thanks to investors’ activities, Poznan has become a modern centre of services and advanced production.
Lodz
Lodz is becoming one of the most dynamically developing major regional markets in Poland.
By the end of 2022, modern office space in the city may increase by almost 50%.
Lodz stands out from other Polish cities with many factories and tenements, which are increasingly adapted to modern and unconventional office space in the city. In such facilities in the first half of 2019, as much as 20% of the space delivered to the market was created in this way.
Source: AXIIMMO
The value of investment transactions concluded on office markets outside Warsaw has already exceeded 1 billion EUR, a record for Poland's regional markets.
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