Colliers International summed up the first half of 2014 in the retail, industrial and office markets as well as land prices in Katowice and the agglomeration.
According to the latest report of the global real estate advisors, the total stock of modern retail space is 1,1 million sq. meters (41 shopping centers), which makes the Katowice agglomeration the second largest in terms of size within the eight largest agglomerations. The retail space density ratio is at the same time the lowest and amounts to 493 sq.m/1000 inhabitants. Six schemes with a total area of 75 000 sq. meters GLA are under construction. Among them, the largest ones are Galeria Galena in Jaworzno (30 000 sq. meters GLA) and Supersam in Katowice (21 000 sq. meters GLA).
The Katowice agglomeration is also the second largest industrial market in Poland. The total supply in this market surpassed 1,5 million sq. meters at the end of June 2014. In the period January-June 2014, two phases of MLP Bieruń were completed, totalling 23 000 sq. meters. Another 56 000 sq. meters of industrial space remains under construction. Demand in H1 2014 reached 183 000 sq. meters, leased within 22 agreements. 35% of tenant activity was represented by new deals, compared with 65% for renegotiations. At the end of June 2014, the vacancy rate was 8,3%.
In the period from January and June, developers delivered to the market 16 200 sq. meters of office space. Two office schemes were delivered to the market – A4 Business Park I (8 700 sq. meters) and GPP Business Park II (7 500 sq. meters). 58 200 sq. meters are under construction. Tenant activity reached the level of 25 100 sq. meters, which was similar to results recorded in the same period of 2013. At the end of Q2 2014, the vacancy rate stood at 6,7%, which translated into 16 200 sq. meters of vacant space. Base rates remained stable and ranged between EUR 12 and 14/sq.m/month. Colliers International expects that 46 700 sq. meters of new office space will be delivered to the Katowice market this year.
Land prices for retail developments are stabilizing. Statistically, the price of 1 sq. meter of residential usable space in Katowice fell by 1%. The biggest decline in land prices for office space in Poland was observed in Katowice (5%).