Demand for office space in Łódź amounted to 66,700 sqm in 2016, after reaching an all-time high of 70,000 sqm a year earlier, largely thanks to the impressive lease transaction for 24,000 sqm signed by mBank. The biggest lease agreements concluded last year included deals signed by Ericsson (in University Business Park) and Fujitsu Technology Solutions (in Nowa Fabryczna), according to a report by JLL.
“… companies from the business services sector accounted for over 50% of the demand for office space recorded last year,” said Karol Patynowski, director of Regional Markets, JLL.
Łódź has an office stock totaling 360,000 sqm, 36,100 sqm of which was added to the market in 2016. A further 124,500 sq m remains under development, out of which 80,000 sq m will likely be delivered to market in 2017, half of which has already been secured with pre-let agreements. “Most of the space under development is comprised of four office projects: Ogrodowa Office, Przystanek mBank, Nowa Fabryczna and Hi Piotrkowska”, explained Łukasz Dziedzic, consultant, Research and Consulting, JLL.
In 2016, the vacancy rate in Łódź was 6.2 percent, which is the lowest rate of any major market in Poland. Prime rents remained between €11.5 and €12.9 /sq m/month.
“Łódź is a city which has become a major transportation hub, has a well-developed academic background, and significant office space stock. These aspects combined with competitive office rents mean that Łódź is a location of growing value for investors”, summarized Patynowski.