Developers in Poznań undeterred by slump
In the middle of 2003, the percentage of vacant space in Poznań was 26 percent of the total, but it increased radically at the end of the year and reached 40 percent, as new buildings, such as Globis with 12,600 square meters, Delta with 12,000 and PGK with 14,000 were completed. In 2003, the supply of office space came to 38,600 square meters, though demand was estimated as 18,600 square meters. Although the financial and insurance sectors have always been the most prominent tenants, BZWBK's move to Wrocław to set up its headquarters will have a significant influence on the Poznań Financial Center (the best Class A building in the city), which will have another one thousand square meters to lease at the end of this year.
Rents are decreasing as clients' needs now rule the market. For the last three years the downward trend in rents has resulted in class A space losing value from zł.95 (€20) per square meter to zł.66.5 (€14) or even less, depending on the space leased. However, lower prices surprisingly have not frightened developers off from constructing new office buildings and the volume for the period 1997-2003 was estimated as 102,720 square meters, though only for Class A buildings. As in many Polish cities, the market for office space in Poznań is very diverse and ranges from old refurbished buildings constructed at the beginning of the 60s, to very modern Class A space. Despite the lower rents, modern office space in the city still amounts to more than 24,000 square meters in the following buildings:
In 2004, it is expected that an additional 6,000 square meters will be ready for take-up and as the amount of space increases, so does the structure of the market. According to Tomasz Piotr Spychalski, a real estate analyst, clients now enjoy a better choice of offices of between 100 and 200 square meters, which are on average 30-40 percent less expensive than in 2000.
The surprisingly lower demand for big Class A office space has, however, not frightened developers from constructing new buildings. Opposite Poznań Financial Center, a 21-storey skyscraper is under development, half of which will be a hotel and half offices. A new investment is also to commence soon, close to the Poznań International Fair area, where the Bałtyk cinema was once located. The local authority, which owns the land, will participate in the construction of a modern hotel with office space there too. Despite these new investments, it remains a mystery as to what is inspiring developers to build more, given the bad situation on the office market at the moment.
Name Class Square meters to be let
Globis A 8,000
Poznań Financial A 2,000
Center
Gasiorowskich A 1,000
Michała A 1,000
Winogrady A 4,000
Business Center
PGK Centrum, A 8,000
ul. Marcelińska
24,000
Source:
Nieruchomości Blaszczyk www.blaszczyk.com.pl
Rents are decreasing as clients' needs now rule the market. For the last three years the downward trend in rents has resulted in class A space losing value from zł.95 (€20) per square meter to zł.66.5 (€14) or even less, depending on the space leased. However, lower prices surprisingly have not frightened developers off from constructing new office buildings and the volume for the period 1997-2003 was estimated as 102,720 square meters, though only for Class A buildings. As in many Polish cities, the market for office space in Poznań is very diverse and ranges from old refurbished buildings constructed at the beginning of the 60s, to very modern Class A space. Despite the lower rents, modern office space in the city still amounts to more than 24,000 square meters in the following buildings:
In 2004, it is expected that an additional 6,000 square meters will be ready for take-up and as the amount of space increases, so does the structure of the market. According to Tomasz Piotr Spychalski, a real estate analyst, clients now enjoy a better choice of offices of between 100 and 200 square meters, which are on average 30-40 percent less expensive than in 2000.
The surprisingly lower demand for big Class A office space has, however, not frightened developers from constructing new buildings. Opposite Poznań Financial Center, a 21-storey skyscraper is under development, half of which will be a hotel and half offices. A new investment is also to commence soon, close to the Poznań International Fair area, where the Bałtyk cinema was once located. The local authority, which owns the land, will participate in the construction of a modern hotel with office space there too. Despite these new investments, it remains a mystery as to what is inspiring developers to build more, given the bad situation on the office market at the moment.
Name Class Square meters to be let
Globis A 8,000
Poznań Financial A 2,000
Center
Gasiorowskich A 1,000
Michała A 1,000
Winogrady A 4,000
Business Center
PGK Centrum, A 8,000
ul. Marcelińska
24,000
Source:
Nieruchomości Blaszczyk www.blaszczyk.com.pl
