Office market in Kraków
27.10.2011
With the total supply of modern office space estimated at the level of 380,000 sq m Kraków is ranked first among the major regional cities in Poland and second in the country (including the Warszawa office market with stock at 2.82 million sq m).
At the end of 2010 seven office projects were under construction. Within the next two years these schemes should supply the Kraków market with additional approximately 52,000 sq m of modern office space for rent, of which approximately 60% will be delivered in 2011, while another 40% should be completed in early 2012. Moreover, construction of three other office buildings with a total space of 21,150 sq m remains suspended.
Some 17 office projects, for which building permits have been issued, were identified at the planning stage. It should be mentioned however, that despite a noticeable recovery in office markets across Poland, commencement of planned schemes usually depends on obtaining a tenant for a significant proportion of the building, which remains a condition set by financial institutions. Consequently, the timing of the developments declared by developers are only approximate and may be subject to change depending on the situation on the rental market.
The article from Real Estate in Małopolska. The report prepared for Małopolska Regional Development Agency S.A. by Prof. Dr hab. Adam Nalepka, dr Agnieszka Makowska, dr Bartłomiej Marona, mgr inż. Agnieszka Telega, Uniwersytet Ekonomiczny w Krakowie, Knight Frank Sp. z o.o.