Warsaw | 23March2017

REGIONAL OFFICE MARKET DRIVEN BY BPO / SSC SECTOR

22 marca 2017

For years, international companies eagerly choose Polish regional cities for the development of their business. The growing demands of tenants result in rapid development of the modern office space sector, which already amounts nearly 9 million square meters in Poland. Outside the capital city, the most important regional markets are Krakow, Wroclaw and Tri-City, where the expansion is determined by the BPO / SSC / IT companies. CBRE prepared the report "Regional Office Market after Q4 2016" analysing the office market indicators in respective regional cities.

2016 shows us that tenants willingly choose regional markets for the development of their business. Market development is generated mainly by the BPO / SSC / IT sectors both in Krakow and other major regional cities. The year 2016 is another record year in terms of leased space. Poland has been a leader in the CEE region in the context of outsourcing services and due to forecasts it will maintain this position in the coming years. In addition, this business line has evolved and, given the very experienced staff, more and more companies, invest their advanced outsourcing processes in Poland. The good examples could be: Cathay Pacific’s decision to develop its business in Krakow and Swarovski’s service center formation in Gdansk.Of course, such examples can be multiplied almost without number. In the coming years, despite the greater competition in the labour market, potential of Polish cities and workers will be stably growi

Kamil Tyszkiewicz, Dyrektor, Advisory and Transaction Services, Dział Powierzch Biurowych, CBRE

Kamil Tyszkiewicz - LinkedIn

There is nearly 4 million sq m of office space in the regional cities and a large activity of developers still favours the development of the market. In the last year, new investments increased office space supply by close to half of million. 75 investments remain under construction and they will provide the market with more over 600.000 sq m in 2017. Development activity is a response to the needs of tenants. In 2016 a record demand was reported with nearly 600 thousand sq m leased.