The report presents the outcome of the research on the office market, with regard to BPO/SSC sector. The market has been analysed in terms of supply, demand, rental rates and vacancy.
Kraków, with its 76 operating BPO/SSC and R&D centres, is the leading outsourcing location in the CEE region. The city’s strong position was confirmed by the latest Tholons’ report, Top 100 Outsourcing Destinations 2013, in which Kraków was listed for the first time in the top ten cities globally.
At the end of 2012 the total supply of modern office space in Kraków reached 485,650 sqm. of which 36,600 sqm. was delivered during the last six months due to completion of schemes in Enterprise Park, Bonarka 4 Business C and Excon in the southern part of the city. Currently, 78,100 sqm. of office space is under construction, of which 24,200 sqm. will be completed by the end of 2013.
Total demand of BPO/SSC/R&D for office real estate accounted for 17,120 sqm. in the second half of 2012. The largest transactions recorded in the period mentioned include: CH2M HILL with CB Kazimierz and Herbalife with Bonarka 4 Business C.
At the end of 2012, the vacancy rate in Kraków stood at 4.6%. The lowest vacancy rate was recorded in the north-east zone, whereas the highest was in the central part of the city. The vacancy rate has been declining since the beginning of 2011.
The average rents for office space remained stable ranging between €13.00 and €14.00 sqm./month. Tenants may expect slightly higher rent rates in the projects under constructions.
In the first quarter of 2013 the office supply will remain unchanged. It will increase by the end of 2013 with the completion of two largest projects: Quattro Business Park C and Bonarka 4 Business D. Leasing activity in the first six months of 2013 may exceed 60,000 sqm. The vacancy rate in H1 2013 is expected to record a further decrease, which might result in upward pressure on rental rates