Kraków’s office market hits the 1 million sqm mark

The office market in Kraków, Poland’s second largest city, has just surpassed 1 million sqm of modern office space. “Outside of Warsaw, Kraków is the biggest office market in Poland. In August 2017, after delivering building B of the Equal Business Park to market, Kraków surpassed the threshold of 1 million sqm of overall supply. It became only the second city, after Warsaw, to do so. As for H2 2017, we expect that the volume of new office space will total 105,000 sqm,” said Rafał Oprocha, head of Kraków Office, JLL.

Lease agreements for over 98,300 sqm were signed in Kraków in H1 2017. “This means that the city accounts for 30 percent of office demand outside Warsaw. Forecasts for the upcoming 18 months remain favorable. According to JLL’s estimates, the annual volumes might match 2015’s record-breaking results – when the demand for office space exceeded 226,000 sqm,” added Agnieszka Sosnowska, Senior Consultant, Research and Consulting, JLL.

Kraków is the largest center for launching investments from the business services sector in Poland. According to ABSL, there are 55,800 people employed in 157 services centers across Kraków. Companies from this sector comprise the main tenants of office buildings developed in Małopolska region’s capital city – they account for 62 percent of occupied office stock within the city and 67 percent of H1 demand, commented Oprocha.

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