Katowice waits for new deals

2013 may be a record-breaking year for Katowice and the office market in the City, especially when we think about two important lease agreements that can be signed this year.

On the other hand, even more than 50 000 sq. meters of modern office space can be expected to be under construction in Katowice in 2013. Is the City prepared to deal with the such volume of new offices? Will the demand be able to match the supply?

“Katowice newly developed office spaces have been almost fully absorbed by tenants during the last years and the City has been facing a low level of large office deliveries since last months. Additionally, several new lease agreements are still expected to be concluded in the nearest future. Owing to the fact that two big companies are going to expand its engagement in Katowice, such developers as Skanska, Echo Investment and GPP try to take an opportunity of this situation and started to build office facilities in the City. It is possible that only these two fore-mentioned tenants may occupy two buildings, what would make the agreements very significant for the Katowice office market” – head of office department at one of international real estate advisors told to katowicethecity.com.

According to the director, the City attracts more attention of investors these days. For example, Katowice currently competes against another Polish city for an investment project of technology company that wants to create 200 workplaces. “Both cities have a 50/50 chance of being chosen by the investor. Katowice are also considered as the potential location by other companies, however the City needs to be shortlisted. The new office space is now underway and there will be no excuses – Katowice has now to fight for new tenants” – the director adds.

The two major office projects being under construction include A4 Business Park (I phase: 9 000 sq. meters) and GPP Business Park (II and III phase: 2 x 7 800 sq. meters). Also Skanska has commenced preparatory works on its Silesia Business Park (I and II phase: 2 x 11 500 sq. meters), however the developer still does not officially confirm the start of construction work.