Big deals and strong pipeline on Katowice office market

Katowice, together with Kraków, took a clear lead in Q3 recording the highest take-up levels on the regional office markets in Poland. At the same time, the City has lost its fourth position taken by Poznań, which surpassed Katowice in terms of the total office space stock.

According to the Jones Lang LaSalle’s latest quarterly report, the total volume of office space in Katowice reached the level of 304 200 sq. meters (Poznań: 310 150 sq. meters). The vacancy rate was stable at the end of Q3 2013 when compared to Q2 and stood at 8,5%.

The largest pre-lets concluded this quarter in Katowice were by IBM (8 700 sq. meters in A4 Business Park I) and ING Services Polska (5 600 sq. meters in GPP Business Park – the Stern building, phase II). The lease agreement signed by IBM was the largest deal of all transactions recorded in regional cities last quarter.

In Q3, 78 300 sq. meters of modern office space was under active construction in the City, what accounts for the third place amongst regional cities after Kraków and Wrocław. The list includes, among others, the construction work on the phase I and II of A4 Business Park (17 800 sq. m), two buildings of GPP Business Park (15 600 sq. m), first building of LC Corp’s project (12 700 sq. m) as well as preparatory works on two facilities of Silesia Business Park (21 300 sq. m).

According to JLL, 27% of all office developments that have been started in regional cities in Q3 are located in Katowice (Kraków: 38%, Wrocław: 19%). However, only 3 500 sq. meters of new office space were delivered to the City’s market during the last quarter. The stock was brought by two office projects: Brynowska 72 (1 040 sq. m) and Dąbrówki 16 (2 445 sq. m).

© Jones Lang LaSalle; major office markets in Poland
© Jones Lang LaSalle; major office markets in Poland