MIPIM News: Lodz office market increasingly international

by   CIJ iDesk I
2017-03-15   07:56
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The Łódź office market is growing in stature in a trend that was confirmed by strong take-up figures in 2016. While the record 70,000 sqm in deals from 2015 was not exceeded, 2016 did see 66,700 sqm in take-up according to JLL. The biggest deals, signed with companies like Ericsson (in University Business Park) and Fujitsu Technology Solutions (in Nowa Fabryczna) reflect the international nature of the demand for space in the city. Izabela Ciszewska, a senior consultant focusing on tenant representation at JLL, said her company had also represented Cybercom, TRW and Sage in their lease deals. " As a result, JLL accounted for the highest share - 31% - in transactions conducted with the participation of advisory firms in 2016," she says.

“The office market in Łódź continues to rapidly develop," says explains Łukasz Dziedzic, Consultant, Research and Consulting, JLL. "In 2016, stock increased by 36,100 sqm. A further 124,500 sqm remains under development, out of which 80,000 sqm will likely be delivered to market in 2017. What is interesting is the fact that over half of the space under construction has already been secured with pre-let agreements. Most of the space under development is comprised of four office projects: Ogrodowa Office, Przystanek mBank, Nowa Fabryczna and Hi Piotrkowska.” Vacancy in the city was 6.2 percent, the lowest of any major market in Poland.

“The city’s central location, large pool of qualified staff as well as a well-developed transport infrastructure make Łódź one of the most attractive locations in Poland," says says Karol Patynowski, Director of Regional Markets, JLL. "This is especially so for projects from the business services sector. The city is undergoing a major transformation. As a result, it is attracting investors who create new jobs, develop their structures by obtaining new more advanced processes and, as a result, boost demand for office space. It therefore comes as no surprise that companies from the business services sector accounted for over 50% of the demand for office space recorded last year.”