The industrial, retail and office markets in the Katowice agglomeration are developing stably, new researches by Colliers International reveal. Additionally, the country’s highest level of industrial demand was noted in the Upper Silesia region in Q3 2014.
Upper Silesia is the second market in Poland in terms of size. At the end of September, total industrial supply exceeded 1,53 million sq. meters. Approximately 29 000 sq. meters was delivered to the market and 60 000 sq. meters of industrial space is still under construction. In comparison to other markets, the highest level of tenant activity was noted in the region, with transaction volume reaching the level of 120 000 sq. meters leased within 17 agreements, according to Colliers International. The analysts noted that 83% of tenant activity was made up of new agreements, while 17% accounted for renegotiations. At the end of Q3, the vacancy rate stood at 8,7%.
In the period described, the largest lease transaction was signed by Delta Packaging (10 600 sq. meters, built-to suit deal) in Panattoni Park Gliwice II. Effective rental rates in Upper Silesia range between EUR 2,00 and EUR 3,00 per one square meter.
Upper Silesia is the second-largest retail market in Poland with 41 shopping centers totaling 1,1 million sq. meters. Further schemes are currently being built including Supersam in Katowice, Galeria Galena in Jaworzno and Marcredo Center in Piekary Śląskie. Gemini Park Tychy is one of the projects at an advanced level of planning.
The total office supply in Katowice increased to 249 300 sq. meters (excluding owner-occupied space). 61 000 sq. meters are under construction, most of which will be delivered to the market by the end of the year. Demand for modern office space reached 5 200 sq. meters. The two new largest deals in Q3 included: TPG Katowice (2 300 sq. meters) in GPP Business Park and Deloitte (890 sq. meters) in Silesia Star. Base rents in Katowice achieved level of EUR 12-14 /sq.m/month. At the end of September, the vacancy rate noted an increase and reached the level of 11,2%, which is a reversal of the previous downward trend.