Office and retail outlook in Q3 2010

Prime office rents in Katowice remained stable in Q3 2010 instead of three new office projects (47 000 sq. meters in total) delivered to the City’s office stock and which increased the vacancy rate greatly. The rents in prime locations are estimated at level of EUR 15 sq.m/month and are expected to hold stable. However demand is still quite low as most of lease transactions are based on removals to new locations and on expansions than on new investments entering the market.

Launch of new office projects is still putting off by developers. Though Katowice is expected to attract interest of investors especially of BPO sector and the construction is predicted to pick up but rather in the long term.

The retail market in Katowice seems to do well as new projects start this year (extension of Silesia City Center and Galeria Katowicka) and following is planned (Supersam). According to analysts the growing interest of developers is connected with an optimistic economic situation in Poland and great purchasing power in the Agglomeration of Upper Silesia.

Although, in Q3 2010 prime retail rents in the City decreased by 9,2 percent in comparison to the same period last year and fell to level of EUR 59 sq.m/month. Whilst the new shopping centers are under construction, the retail rents in prime locations should remain generally stable.

based on reports of Cushman&Wakefield