Vacancy rate drops below 10 percent

The Katowice office market sees slow but continuing growth of tenants demand and dropping of vacancy rate. Jones Lang LaSalle estimates, that the ratio fell below the level of 10 percent in H1 2012, reaching a single digit for the first time since the second half of 2009.

As no completions were delivered to the market during the last six months, the total office stock remains unchanged and stands at 259 500 sq. meters. At the same time, several new deals were signed for office spaces in existing buildings. The large number of transactions were mostly concluded by GTC for its Francuska Office Center exceeding 8 000 sq. meters – it includes lease agreements with, among others, a telecommunication sector’s company (3 200 sq. m), Trac Tec (1 200 sq. m), Oracle and American Heart of Poland (both 1 000 sq. m).

Consequently, the new deals caused an increase in the vacancy level, with the rate now standing at 9,9 percent (12,8% at the end of 2011). Prime headline rents currently range in Katowice from EUR 12 to 13/sq. meter/month. According to Jones Lang LaSalle’s analysts, about 45 500 sq. meters of new office space were under construction in the City at the end of Q2 this year.