Colliers International released a report, which presents the potential of human capital and office real estate market in the context of modern business services sector development in the Southern Poland, including Katowice.
The capital city of the Upper Silesia region is considered as one of the top locations for BPO/SSC companies together with Kraków and Wrocław. Also, two other Southern Polish cities – Rzeszów and Kielce – were taken into consideration in the report as the emerging markets.
In the past, Katowice was regarded as a secondary location, while tenants used to choose neighbouring cities (Kraków and Wrocław). Currently, the City is recognized as an established business location attracting international investors, can be read in the publication.
„The best definition for what can be observed in Katowice is the snowball effect. The presence of well-known tenants and developers attract others. Katowice is becoming an increasingly mature market that is enjoying growing credibility among investors. The purchase of Ghelamco’s Katowice Business Point by Starwood Capital is the best example. Numerous investments in the public and private sector have changed the perception of the city as a good place to live and to do business. Furthermore, thanks to the city authorities’ attitude and engagement, the opinion of investors about Katowice is very positive as well” – commented Tomasz Zydorek, Regional Office Manager of the Katowice office, Colliers International.
Katowice offers over 245 700 sq. meters of modern office space destined for lease (the total office space amounts to 336 900 sq. meters, including both rentable stock and owner occupied space, according to JLL). Over 40% of the existing supply was delivered to the market between 2010 and 2014, the Colliers International’s report says.
In the last two years, Katowice has recorded increasing construction activity. Developers encouraged by the favourable market situation (stable demand and a decreasing vacancy rate) have started the construction of planned investments. Several of these schemes, including A4 Business Park I and GPP Business Park I-III, have already been completed, yet there are still 61 000 sq. meters under active construction. The next projects are in the development pipeline; however, the start of new investments is largely dependent on progress in the commercialization of schemes currently under construction.
In H1 2014, the vacancy rate in Katowice recorded a gradual decrease. In H2 2014, this trend is going to reverse, which is directly associated with significant supply growth in this period.
In the Katowice agglomeration, modern business services centers are more dispersed as compared to other regions, which on the one hand means greater access to a larger number of potential employees, but on the other hand involves the risk of their lower mobility.
„What are the strengths of Katowice? First of all, I appreciate the well-developed infrastructure: the airport, the expanded road network and railway connections. I have been living in Katowice for over 10 years. The pace of development of the city, the labour market and real estate prices were factors which convinced me to stay here” – Anita Kornacka, Lead Recruiter at Steria Polska, was quoted in the report.