The DTZ company – worldwide property adviser, launched a report concerning the office market in regional cities of Poland. Here is the study of Katowice office market in 2010 and a forecast for the year 2011.
2010 was a record breaking year in terms of new office deliveries in Katowice. Annual office supply reached almost 48 000 sq. meters, which is the highest volume recorded on the market to date. Total modern office stock amounts to more than 263 500 sq. meters.
The pipeline supply scheduled for delivery in coming years will be much lower. According to forecasts 14 000 sq. meters is going to be completed in 2011 and 23 000 sq. m. in 2012 (Figure 13).
Over 2010, the demand for office space in Katowice improved in comparison to the year before, which resulted in a drop in the vacancy rate by 3 pp in the second half of the year, from 18.2% at the end of H1 2010 to 15.2% at the end of the year. However it is still quite high due to the large amount of new office space delivered to the market in this period. To compare, the vacancy rate in 2009 amounted to approximately 6% (Figure 14).
Main leasing transactions in 2010 in Katowice include: PKP Cargo (5 850 sq m in Reinhold Center I), PWC (2 100 sq. m. in Katowice Business Point), PZU (1 700 sq. m. in Atrium) and a renewal of ING (2 300 sq. m. in Green Park).
Given the positive forecasts for the Polish economy and a growing interest from companies to relocate to new office premises, demand in Katowice is likely to increase, which together with a low level of pipeline supply should result in a drop in the vacancy rate.
Prime asking rents in Katowice remained stable (€14-15.5 per sq. m. per month) and average rates range from €11-13 per sq. m. per month. Rental levels are likely to remain stable over 2011.
source: DTZ Research, April 2011