Eight new office markets emerge in Poland: JLL

Eight new city office markets have emerged in Poland, with growth driven by a variety of demand and supply criteria, according Jones Lang LaSalle.

The property adviser’s report 'New Office Locations in Poland' says the cities of Rzeszów, Kielce, Bia³ystok, Opole, Bydgoszcz, Olsztyn, Toruñ and Radom have emerged as start-up and alternative office destinations in Poland.

The demand in these markets is generated by local companies seeking more functional and prestigious locations. The major growth factor, however, is the interest shown by external investors. Numerous companies, especially from the business services sector, tend to locate their new units outside the largest agglomerations, to ensure access to qualified workforce and cost effectiveness. The analysed locations currently feature more than 30 such investments.

The modern supply of office space in the eight cities analysed amounts to over 260,750 m2, which accounts for 5% of the entire office stock in Poland. The standard of newly developed projects continues to improve. Currently, 57,600 m² of A, B, and B+ class office space is being developed. The leading markets in this respect are Olsztyn (15,400 m2) and Radom (13,000 m2).

Monthly office rents in these markets are between EUR 8-11 m2/month and remain competitive in comparison to the largest Polish agglomerations, where office rents are between EUR 11-15.5 (excluding Warsaw). Another factor driving cost effectiveness for companies are labour costs, which remain 10-15% lower. On average, the monthly gross salary in the analysed cities is PLN 3,338 (EUR 809), while for instance in Krakow and Wroc³aw it is PLN 3,806, and PLN 3,670 respectively.