Jllkatowice2014
2
Total modern office stock in Katowice is estimated at 317,800 m 2 . Further 59,000 m 2 will come to the market in 2014, one third of which has already been pre-let. This ranks Katowice fifth in respect to the existing office supply (behind Warsaw, Kraków, Wrocław, and the Tri-City), and fourth in terms of pipeline office provision in 2014 (after Warsaw, Kraków and Wrocław). Q1 2014 saw a completion of one office building in the city i.e. the first phase of the A4 Business Park by Echo Investment, with 8,700 m 2 of office space fully let. In Q2, another 15,300 m 2 of new supply is set to be delivered to the market, half of which is already pre-leased. However, a majority of office provision under construction will be delivered in H2 2014 (43,600 m 2 ), including 12,700 m 2 in Silesia Star I (LC Corp), and 10,700 m 2 in Silesia Business Park I (Skanska), both 50% let. Katowice and its wider area has become home to numerous corporations from the modern business services sector. The rationale behind this situation is a well-developed infrastructure, strong academic potential making a significant talent pool, as well as stable and competitive rents, slightly below what makes a headline rent in other major office locations in Poland such as Warsaw, Kraków, Wrocław and Poznań for example. The above resulted in a record-breaking level of demand in 2013, making 2013 a peak year in this respect since 2010. The gross take-up totalling 60,700 m 2 represented a 25% increase y-o-y (the net take-up of 53,900 m 2 was up 36% y-o-y). 51% of all signed leases were pre-lets. Q1 2014 saw office lease transactions for 13,100 m 2 , with 49% being new agreements and 42% - renewals. The vacancy rate in Katowice has been steadily declining since Q2 2010 when a peak of 18.3% was recorded. Currently it stands at only 5.6% of modern office stock, which corresponds to 17,700 m 2 of modern office stock being vacant. Only the city of Kraków has currently a vacancy rate lower than this. This not only proves that from 2010 onwards Katowice has continued to attract new tenants, but also that the companies already operating in the city are developing, and therefore continuously need more office space for the purposes of further business expansion. Prime headline rents in Katowice range between €12.50 and 14.00 / m 2 / month. Summary Statistics* 2013 Q1 2014 12 months outlook Gross Take-up (m 2 ) 60,700 13,100 Net Take-up (m 2 ) 53,900 7,600 Vacancy (m 2 ) 27,900 17,700 Vacancy Rate (%) 9.0% 5.6% Completions (m 2 ). 16,100 8,700 Under construction (m 2 ) 78,200 69,600 Prime Rent (€ / m 2 / month) 12.50-13.50 12.50-14.00 Net take-up = letting transactions excluding renewals Completions (m²), Pipeline (m²) and Vacancy Rate (%) Source: JLL, Q1 2014 Katowice Office Market Q1 2014 0% 5% 10% 15% 20% 0 10 000 20 000 30 000 40 000 50 000 60 000 70 000 80 000 2010 2011 2012 2013 F2014 Pipeline - Available (m²) Pipeline - Pre-let (m²) Completions (m²) Vacancy Rate
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Transcript of Jllkatowice2014
Total modern office stock in Katowice is estimated at 317,800 m2.
Further 59,000 m2 will come to the market in 2014, one third of
which has already been pre-let. This ranks Katowice fifth in respect
to the existing office supply (behind Warsaw, Kraków, Wrocław, and
the Tri-City), and fourth in terms of pipeline office provision in 2014
(after Warsaw, Kraków and Wrocław).
Q1 2014 saw a completion of one office building in the city i.e. the
first phase of the A4 Business Park by Echo Investment, with
8,700 m2 of office space fully let. In Q2, another 15,300 m2 of new
supply is set to be delivered to the market, half of which is already
pre-leased. However, a majority of office provision under
construction will be delivered in H2 2014 (43,600 m2), including
12,700 m2 in Silesia Star I (LC Corp), and 10,700 m2 in Silesia
Business Park I (Skanska), both 50% let. Katowice and its wider area has become home to numerous
corporations from the modern business services sector. The
rationale behind this situation is a well-developed infrastructure,
strong academic potential making a significant talent pool, as well as
stable and competitive rents, slightly below what makes a headline
rent in other major office locations in Poland such as Warsaw,
Kraków, Wrocław and Poznań for example.
The above resulted in a record-breaking level of demand in 2013,
making 2013 a peak year in this respect since 2010. The gross
take-up totalling 60,700 m2 represented a 25% increase y-o-y
(the net take-up of 53,900 m2 was up 36% y-o-y). 51% of all signed
leases were pre-lets. Q1 2014 saw office lease transactions for
13,100 m2, with 49% being new agreements and 42% - renewals.
The vacancy rate in Katowice has been steadily declining since
Q2 2010 when a peak of 18.3% was recorded. Currently it stands at
only 5.6% of modern office stock, which corresponds to 17,700 m2 of
modern office stock being vacant. Only the city of Kraków has
currently a vacancy rate lower than this.
This not only proves that from 2010 onwards Katowice has
continued to attract new tenants, but also that the companies
already operating in the city are developing, and therefore
continuously need more office space for the purposes of further
business expansion.
Prime headline rents in Katowice range between €12.50 and
14.00 / m2 / month.
Summary Statistics* 2013 Q1 2014 12
months outlook
Gross Take-up (m2) 60,700 13,100
Net Take-up (m2) 53,900 7,600
Vacancy (m2) 27,900 17,700
Vacancy Rate (%) 9.0% 5.6%
Completions (m2). 16,100 8,700
Under construction (m2) 78,200 69,600
Prime Rent (€ / m2 / month) 12.50-13.50 12.50-14.00
Net take-up = letting transactions excluding renewals
Completions (m²), Pipeline (m²) and Vacancy Rate (%)
Source: JLL, Q1 2014
Katowice Office Market Q1 2014
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0%
5%
10%
15%
20%
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
2010 2011 2012 2013 F2014
Pipeline - Available (m²) Pipeline - Pre-let (m²)Completions (m²) Vacancy Rate
COPYRIGHT © JONES LANG LASALLE IP,
INC. 2014. All rights reserved. No part of this
publication may be reproduced or transmitted
in any form or by any means without prior
written consent of Jones Lang LaSalle. It is
based on material that we believe to be
reliable. Whilst every effort has been made to
ensure its accuracy, we cannot offer any
warranty that it contains no factual errors.
We would like to be told of any such errors in
order to correct them.
Jones Lang LaSalle
Rafał Oprocha
Head of Kraków & Katowice Office
Kraków, Poland
Tel. +48 12 294 9430
www.jll.pl
Mateusz Polkowski
Associate Director
Research & Consultancy
Tel. +48 22 318 0042
Map of major selected office developments in Katowice
