JLL is the next real estate advisory company which recognizes that the Katowice office market is beginning to mature. The firm presented its latest review in this topic.
A couple of years ago the Katowice office market gained momentum when it became an important destination for the modern business services sector, which remains a major driving force behind the commissioning of new office projects and a strong factor in growth of demand. Among the most notable recent entries were: IBM (A4 Business Park) and PwC (Silesia Business Park). In the whole of 2013 this sector accounted for almost 48% of leased space in the City. Currently, it has a 32% share in total occupied stock.
Demand in Katowice is continuously growing, according to JLL. In 2011, take-up volumes almost doubled those seen in 2010 (which then amounted to only 18 400 sq. meters) and this trend of growth is further confirmed by annual increases of over 30% in 2012 and 25% in 2013. As for Q1–Q3 2014, gross take-up stood at 40 400 sq. meters, with net take-up at 27 200 sq. meters.
Developers have been quick to notice growing tenant interest in the City and this year responded to that with a robust volume of new supply. In Q1–Q3 approximately 27 000 sq. meters of modern office space was delivered in Katowice. However, JLL expects an additional 42 000 sq. meters to come to the market by the end of 2014. Moreover, 40% of the space under construction and due for delivery in Q4 is already secured by pre-let agreements.
Supply and demand in balance have generated a vacancy rate of 9,8% in Q3 2014. However, as several large agreements signed in 2010 will expire at the turn of this year and the advisory firm expects an acceleration of vacancy rates in older buildings.