Kraków with strongest office demand

Almost 44 percent of the 136,500 sqm space currently under construction in Kraków (64 percent scheduled for completion still in 2014) has been secured by pre-let agreements, outperforming other major cities, where between 18.5 percent and 25.5 percent is pre-let (the exception being Szczecin, with 8.5 percent), according to a recent report by JLL. Kraków also has the lowest vacancy rate in Poland 4.5 percent. Out of the 1.1 million sqm of office space currently under construction in Poland, 531,400 sqm is located outside of the capital, in Poland’s major cities. Kraków, Wrocław and the Tri-City account for 67 percent of the pipeline, The first six months of 2014 brought 123,100 sqm of new office stock to the market outside Warsaw (68,000 sqm in Q2 alone). The leading cities were Katowice, which accounted for 24 percent of all completions, followed by the Tri-City and Kraków, each with 20 percent. In Q2, major new deliveries included Olivia Four in Gdańsk (12,500 sqm), Alma Tower in Kraków (10,400 sqm) and GPP Business Park II in Katowice (7,500 sqm). Łódź was the only city with no new completions, which has contributed to the city’s decrease in vacancy rates from 13.4 percent to 9.2 percent (the biggest drop among all office markets).