Katowice office market in H1 2012

Cushman & Wakefield, the world’s largest privately held commercial real estate services firm, presents a summary analysis of the office market in Katowice for the first half of 2012.

Over the first half of 2012, total transaction volume by area in the Katowice market stood at around 18 000 sq. meters, with new leases accounting for 80%. At the end of 2012, provided that demand remains positive, the transaction volume is likely to reach 2011’s level of 37 200 sq. meters. The first six months of 2012 were record-breaking for GTC that has signed lease agreements for approximately 10 000 sq. meters of office space in its Francuska Office Center.

The largest deals were Tele-Fonika’s and Rockwell Automation’s lease of 3 200 sq. meters and 2 089 sq. meters, respectively, in fore-mentioned GTC’s Francuska Office Center and Steria’s 2 837 sq. meters expansion in the Altus building.

With unchanged demand and no completions, the vacancy rate declined from 11,4% at the end of 2011 to 9,9% over the first half of the year. The City’s development pipeline comprises a handful of new projects including the 13 000 sq. meters Nowe Katowickie Centrum Biznesu and the 6 335 sq. meters Euro-Centrum’s passive office building. Total stock in Katowice stood at 269 600 sq. meters at the end of H1 2012.

According to Cushman & Wakefield, Katowice will be the only one location in Poland where the general value of the three indicators – supply, demand and rents – will go up in the nearest future. The vacancy rate is expected to decline at the same time.

Headline rents do not exceed EUR 14 per sq. meter per month, with effective rents ranging between EUR 11-12 per sq. meter per month similar to the end of 2011.

Katowice is the fourth regional office market in Poland in terms of total office stock after Kraków, Wrocław and TriCity.

source: Cushman & Wakefield