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News Release

Kraków

Kraków sees strong office occupier demand.  Tenants are looking for space totalling 60,000 sqm. The City ranked 11th in a Tholons “Top 100 outsourcing destinations” global research.


Kraków, Warsaw, 12 March, 2012 – Jones Lang LaSalle is pleased to present its new research report focused on the city of Krakow “Kraków City Report”. The release of this informative and opinion-led real estate report coincides with the publication of Tholons Top 100 outsourcing destinations, in which Krakow was ranked 11th.
“We are delighted with such a high position of Kraków in the global rating. Kraków was rated 11th, ahead of all other Central and Eastern European cities such as Prague (20th), Budapest (27th), Brno (31st), and Warsaw (38th). The only European city ranked higher is Dublin (8th), however, Kraków has – in our view – a clear cost advantage over mature European places like Dublin” said Rafał Oprocha, Head of Jones Lang LaSalle office in Kraków. “According to ABSL data, approx. 15-18,000 people are currently employed in the business services sector in the capital of Malopolska region and this number is still growing. We therefore observe a sustainable interest from occupiers representing the outsourcing sector. At the moment there are tenants enquiries for approx. 60,000 sqm of office space” added Oprocha.

The key features characterizing the office market in Kraków are otherwise:

• Maturity, due a total existing office stock of 500,000 sqm which corresponds to a reasonably good choice of leasing offers and office locations;
• Possible growth in effective rents due to limited pipeline and stiffening developers’ policy. This may lead to a potential supply gap in 2013;
• Take-up driven both by expansions and new requirements, also from newcomers;
• Further 200,000 sqm of modern office space are proposed and awaiting pre-letting.  
 
The office and retail sectors are the most actively developing having regard to construction activity in Kraków. Approx. 60,000 sqm of office space and another 60,000 sqm of retail space is presently at construction stage, compared to 20,000 sqm in industrial.
 
Patricia Lannoije, Head of Research and Consultancy at Jones Lang LaSalle commented: “Kraków benefits also from a well-diversified retail offer which is an important asset in the attractiveness of the city. With the opening in Autumn 2011 of the city’s first factory outlet centre, developed by Neinver, all retail formats are now present on the local market. The Kraków agglomeration counts currently 11 shopping centres, 2 retails parks, 13 retail warehouses and attractive shopping high streets in the historical heart of the city which is a sought after location for many flagship stores, mid-market brands and luxury stores. Most recently, the construction commenced of the Auchan Bronowice shopping centre which will capture a significant catchment population in the north and north-western part of Kraków and its suburbs. The project is likely to benefit from sound retailer demand and good timing.”