Sound office demand registered in Katowice in Q1 2015

International advisory company JLL presents its Q1 2015 summary for Poland’s office market. Leasing deals signed in Katowice were one of the largest in regional cities.

In Q1 2015 lease agreements totalling 300 000 sq. meters were signed on the Polish office market. „We have witnessed a very good beginning to the year. Total new office supply across the country delivered in Q1 totalled 149 500 sq. meters. Developers are very active as 1,4 million sq. meters are under construction with various delivery times” – said Anna Młyniec, Head of Office Agency and Tenant Representation at JLL.

After the record-breaking 2014, regional markets went from strength to strength in Q1 2015. The impressive take-up volume totalled over 132 000 sq. meters, of which 27 800 sq. meters were leased in Katowice what makes the City second in terms of leasing activity of tenants (Kraków – 32 400 sq. meters leased, Wrocław – 23 400 sq. meters). Two of the three biggest transactions in Q1 2015 were signed in Katowice. These were the agreements secured by PKP Cargo (a new deal for 7 600 sq. meters, A4 Business Park II) and Capgemini (pre-let for 5 600 sq. meters in Silesia Business Park B).

The second building of Echo Investment’s A4 Business Park (9 100 sq. meters) was the largest project delivered to the Katowice market last quarter and the third largest across major regional cities after Poznań and Kraków.

Prime headline rents in regional cities currently range between EUR 12,5 to EUR 13,75 /sq.m/month, according to JLL. The vacancy rate stood at the level of 13,3% at the end of the last quarter and was the highest after Szczecin and Poznań.

© JLL; stock and vacancy rate after Q1 2015
© JLL; stock and vacancy rate after Q1 2015 in Polish major regional cities