PIA Piasecki and co. to build Krakow Business Park
Developer PIA Piasecki Inwestycje, a subsidiary of general contractor PIA Piasecki, announced last month that it had formed an investment group with Krakow property owners to develop the Krakow Business Park (KBP).
The group, whose official name is Krakow Business Park, is planning to build an 11-phase, 100,000 square-meter complex for an estimated $200 million. The project's 9,610 square-meter first phase, KBP 100, is slated to begin in May and finish by early next year, the company said. KBP 100, whose asking rent is $19.50 per square meter plus a $5.50 per square meter service charge, has already signed the Polished Group, a subsidiary of Prokom Software, to take half the space in the $15 million building.
KBP is located on the A-4 highway near Krakow's Balice Airport. "We hope to attract financial and high-tech companies," said Artur Staniszewski, an agent for U.S.-based CB Richard Ellis, the project's adviser. According to Staniszewski, the location should also appeal to Silesia-based companies. "It's a 30-minute drive from Katowice," he said, adding that one of the region's major selling points is highly qualified personnel, a result of Krakow's many universities and colleges. "Krakow has the most highly skilled people," Staniszewski said.
KBP's other 10 phases are to be developed in stages. "The developer will watch the market and act accordingly," Staniszewski said.
In the last few years, Krakow has seen several important office developments such as the 14,000 square-meter Centrum Biurowe Lubicz, the 8,000 square-meter office building on Aleja Pokoju, developed by Azbud, and the 3,000 square-meter Sobieslaw Zasada. Under construction are the 18,000 square-meter Centrum Biznesu Olsza and Centrum Biznesu i Innowacji Copernicus. "Potential demand in the Krakow area is good (and) comparable to Poznan and Wroclaw," Staniszewski said.
Atrium Centrum vs. Centrum Krolewska
Two new class-A office buildings, expected to open this fall, are battling for tenants in Warsaw's already-tight downtown office market.
Atrium Centrum, which is scheduled for completion in September, will add another 16,000 square meters of office and retail space to the Atrium Centre on Aleja Jana Pawla II, which already includes the Atrium Plaza and Atrium Tower, owned by Swedish Skanska Property Poland.
The seven-story structure will include suspended ceilings, raised floors, air conditioning and modern telecommunications. The building will also have the first raised-floor ventilation system in Warsaw. "We are flexible and able to fit out space for individual clients," said Per-Lennart Johannson, the general manager of Skanska Property Poland. According to him, the building will have no trouble attracting tenants, despite Skanska's high asking rent of $32 per square meter. "They know our quality and the location is perfect," he said. Johannson refused to say whether any prelease deals had been signed.
Jeroen van der Toolen, director of DTZ Zadelhof Tie Leung (DTZ), added that the Atrium Centrum building is a perfect alternative for companies with larger space requirements.
Meanwhile, the 13-story Centrum Krolewska, slated for completion in October, will release 7,500 square meters of fresh space onto the market. Krolewska, the project's investor, comprises pager operator Polpager and hotel chain Orbis. The company said it hopes to attract tenants with its prime location at the intersection of ulica Krolewska and ulica Marszalkowska. "This project has a definite advantage over Atrium in terms of location," said Adam Rejczak of U.S.-based Healey & Baker, the building's agent. He added that letters of intent to lease the entire building had already been signed and the deals would be finalized by the end of March. Asking rent in Krolewska is $33 per square meter.
Announcements
n Coca-Cola leased 1,200 square meters of space in Warsaw's Focus Filtrowa, the 33,000 square-meter class-A office building on Aleja Armii Ludowej. Anglo-Dutch DTZ was the agent in the deal. Asking rent is $28 per square meter. Coca-Cola joins Deutsche Bank, general contractor Mostostal, insurance company Compensa, and mortgage bank Rheinhyp-BRE as tenants in the building.
n Post Info, a domestic producer of telecom-software solutions, leased 700 square meters in Aurum, a 5,000 square-meter office building on Warsaw's ulica Walicow. DTZ acted on behalf of Mennica Investments, the building's developer.
n The Roma Office Center, located on ulica Nowogrodzka in Warsaw, has recently picked up three new tenants. Fiserv, a U.S.-based provider of data processing and information management systems, will take 400 square meters in the building. Investment firm Fargoll will take 130 square meters and DSG, an IT company, will take 90 square meters. Healey & Baker represented Roma in the deals.
n U.K.-based Knight Frank Nieruchomosci concluded three deals in Wroclaw: two in the Renaissance Business Center, which leased space to Prumerica, a subsidiary of U.S.-based insurer Prudential, and DM Elimar, a Polish brokerage house. Bank Komunalny took 320 square meters in the Szewska Centrum office building.
