Office market in 2010

The year 2010 is going to bring a relatively high growth in the Katowice’s office space supply. As some office schemes like Reinhold Center and Francuska Office Center had been postponed and its construction was not finished in 2009, the completion of these projects will take place in 2010. Thereby, the supply is predicted to reach about 53 000 sq. m during next twelve months.

Office schemes which delivery is forecasted in 2010

At present, the lower demand and the number of commenced projects have led to a “tenant favourable” market. The situation is characterised by rent-free periods which vary between 3 to 12 months on a five-year lease agreement for large office requirements.

Prime office rents in Katowice are fixed at level of EUR 15/sq.m/month for an A-class office space and EUR 10-12/sq.m/month for a B-class building. A further decrease in rents in 2010 is possible and will fall by EUR 1-2/sq.m/month. It is forecasted that the increasing number of available office spaces will cause a higher vacancy rate.

According to the foregoing matters and present difficulties with a bank financing for developers, decisions about some of announced office schemes and its construction start will be postponed farther on.

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