Kraków: Where history comes first
Unlike other cities in Poland, however, there is only one Class A building, Centrum Biurowe Lubicz, which has only 55 percent of its space available for new tenants.
The other buildings are all class B+ or lower and are located in the outer-lying areas of the city. Historical and architectural constraints make it impossible to put up any new office buildings in the center. Although buildings outside the city center offer more attractive rents for tenants, their main disadvantage is a lack of parking facilities and communications. This latter fact was probably one reason why modern office buildings there have suffered a ten percent decrease in rents. Now rents range from 10-13 (zł.47.5-61.7) per square meter with an additional 2-3 (zł.9.5-14.2) in maintenance costs. A slightly less significant drop in rents was shown for old office buildings located in the heart of Kraków's historic area, where they have fallen by five percent for the first time since 2001.
Poland's economic problems have been reflected in Kraków's property market in that no office buildings have been completed since 2003. The situation will, however, change once ECE Project Management begin work on the biggest ever investment in Kraków, the 'Nowe Miasto' project, in the second quarter of 2004. Over the next few years, it is expected that an additional 60,000 square meters will be ready. About 22,000 square meters will be occupied by the Nowe Miasto project, which was originally to be built by Tishman Speyer Properties, but instead the American investor decided to sell the land to the German construction holding, ECE Projektmanagement. According to Arkadiusz Nowosad, a real estate analyst, if the spatial permit does not get its approval from Kraków's city council, the exact number of square meters to be constructed within the framework of this project could be even 11,000 less than originally stipulated by the investor. Other investors have also decided to engage in the construction process despite the unfavorable market conditions.
Globe Trade Center (GTC) plans to put up two new 20,000 square meter office buildings in close proximity to Aleje Armii Krajowej, near the Galileo office building. Another building, Buma Square (15,000 square meters), comprising both office and commercial space, is to be completed in the second quarter of 2005. However, time will tell if these investments will go ahead. For the time being, tenants can choose from the buildings listed above.
B
ecause price is a crucial factor for tenants, most look for office space of between 200-400 square meters, with rates of between 7-12 (zł.33.2-56.9) per square meter.
The other buildings are all class B+ or lower and are located in the outer-lying areas of the city. Historical and architectural constraints make it impossible to put up any new office buildings in the center. Although buildings outside the city center offer more attractive rents for tenants, their main disadvantage is a lack of parking facilities and communications. This latter fact was probably one reason why modern office buildings there have suffered a ten percent decrease in rents. Now rents range from 10-13 (zł.47.5-61.7) per square meter with an additional 2-3 (zł.9.5-14.2) in maintenance costs. A slightly less significant drop in rents was shown for old office buildings located in the heart of Kraków's historic area, where they have fallen by five percent for the first time since 2001.
Poland's economic problems have been reflected in Kraków's property market in that no office buildings have been completed since 2003. The situation will, however, change once ECE Project Management begin work on the biggest ever investment in Kraków, the 'Nowe Miasto' project, in the second quarter of 2004. Over the next few years, it is expected that an additional 60,000 square meters will be ready. About 22,000 square meters will be occupied by the Nowe Miasto project, which was originally to be built by Tishman Speyer Properties, but instead the American investor decided to sell the land to the German construction holding, ECE Projektmanagement. According to Arkadiusz Nowosad, a real estate analyst, if the spatial permit does not get its approval from Kraków's city council, the exact number of square meters to be constructed within the framework of this project could be even 11,000 less than originally stipulated by the investor. Other investors have also decided to engage in the construction process despite the unfavorable market conditions.
Globe Trade Center (GTC) plans to put up two new 20,000 square meter office buildings in close proximity to Aleje Armii Krajowej, near the Galileo office building. Another building, Buma Square (15,000 square meters), comprising both office and commercial space, is to be completed in the second quarter of 2005. However, time will tell if these investments will go ahead. For the time being, tenants can choose from the buildings listed above.
B
ecause price is a crucial factor for tenants, most look for office space of between 200-400 square meters, with rates of between 7-12 (zł.33.2-56.9) per square meter.
