Annual supply 2009/2010

Katowice, the office resource of the Silesian Aggloremation, currently offers more than 200 000 sq. m of modern office space. The low vacant ratio in 2007–2008, not exceeding 3%, encouraged investors to undertake subsequent office projects and because of spectacular arrivals by companies such as Mentor Graphics, Ontrack Data Recovery, Capgemini, Bombardier, Rockwell Automation, ING Bank Śląski, Calling Polska, TP S.A., Link 4, Display Link and Sin Qua No, the buildings available on the market were almost fully leased.

In the first half of 2009, over 19 000 sq. m of space was completed, assuring Katowice fourth position nationwide in terms of modern office supply (after Warsaw, Wrocław and Kraków). However, similar to the other parts of the country, strongly growing vacant space became a clear sign that investment plans should be revised thoroughly.

As much as 42% of the space launched on the market in the previous 6 months remained vacant at the beginning of Q2, making the vacancy rate jump to 9.4% (with 5.2% in Q1 2009). Jones Lang LaSalle forecasts that the vacancy rate will keep the upward trend to reach a level of 12% at year end. In addition, the first options for subleasing large office modules of more than 500 sq. m have appeared on the market.

Jones Lang LaSalle forecasts that in 2009 as a whole, the Katowice market will experience over 29 000 sq. m of new modern office space added to supply. A higher level of supply may be expected in 2010, which will probably see the completion of ca. 40 000 sq. m of modern office space. This high supply means that many of the investment projects scheduled for 2011 will be postponed.

Adverse economic conditions forced developers to make significant concessions to potential lessees. As compared to the beginning of 2009, transactional rates in Katowice underwent a strong adjustment and reached the current level of EUR 12.50–13.50/sq.m/month. Is expected the lower limit of the price range to be valid also for 2010.

based on Jones Lang LaSalle researches
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