{"id":1081,"date":"2019-09-19T09:53:57","date_gmt":"2019-09-19T09:53:57","guid":{"rendered":"http:\/\/ceo.com.pl\/en\/?p=1081"},"modified":"2019-09-19T09:53:57","modified_gmt":"2019-09-19T09:53:57","slug":"savills-lodz-sees-a-crop-of-new-office-buildings-59857","status":"publish","type":"post","link":"https:\/\/ceo.com.pl\/en\/savills-lodz-sees-a-crop-of-new-office-buildings-59857\/","title":{"rendered":"Savills: \u0141\u00f3d\u017a sees a crop of new office buildings"},"content":{"rendered":"

\u0141\u00f3d\u017a is one of Poland\u2019s eight core regional office markets. Its total office stock is set to surpass 500,000 sq m in H2 2019, placing the city almost on par with Katowice and Pozna\u0144, but behind Tricity, Wroc\u0142aw and Krakow. By comparison, Warsaw has 5.54 million sq m of office space. At the end of June 2019, \u0141\u00f3d\u017a\u2019s office stock amounted to 496,700 sq m, of which more than 40% was delivered since 2015.<\/strong><\/p>\n

\u0141\u00f3d\u017a saw its first modern office buildings, including Centrum Biznesu \u0141\u00f3d\u017a, \u0141\u00f3d\u017a 1, Orion and Red Tower, built in its city centre. In later years, office development spread to the Widzew district, which witnessed such completions as Forum 76 and Symetris Business Park (soon to be joined by Imagine and Monopolis), and recently also to Nowe Centrum \u0141odzi (NC\u0141), whose office stock comprises such projects as Nowa Fabryczna, Przystanek mBank and Brama Miasta.<\/p>\n

Compared to other office markets, \u0141\u00f3d\u017a has a large volume of post-industrial space. At the end of H1 2019, approximately 20% of its modern office stock was in refurbished factories and tenement houses.<\/p>\n

According to Savills data, there was 96,000 sq m of office space under construction at the end of H1 2019. The development pipeline for 2020-2022 amounts to approximately 210,000 sq m in such office projects as Targowa 2 (HB Reavis; 30,000 sq m), Textorial Park II (St. Paul\u2019s Development; 26,000 sq m), P22 (Ghelamco and Budomal; 26,000 sq m), the first phase of Fuzja (Echo Investment; 20,000 sq m) and the first phase of Nowe Soho (Ghelamco; 15,200 sq m).<\/p>\n

\"Dariusz
Dariusz Karwa\u0144ski, Associate Director, Office Agency, Landlord Representation, Savills<\/figcaption><\/figure>\n

\u201cDevelopers have recognised \u0141\u00f3d\u017a\u2019s potential. The city\u2019s total office stock is likely to top 700,000 sq m by 2022. Never before has such a strong office supply been projected in the city for a three-year period. Improved availability of high quality office space may help attract more companies to \u0141\u00f3d\u017a,\u201d says Dariusz Karwa\u0144ski, Associate Director, Office Agency, Landlord Representation, Savills.<\/p>\n

Demand for office space in \u0141\u00f3d\u017a grows unabated. Office take-up reached 32,200 sq m in the first six months of 2019, up by 13% year-on-year, setting a new high for the first half of a year on the \u0141\u00f3d\u017a office market. The largest transactions finalised in January-June 2019 include New Work\u2019s 5,000 sq m pre-let in Hi Piotrkowska, two deals done by Nordea Operations Centre: a new lease for 3,300 sq m in Red Tower and a pre-let for 3,300 sq m in Cross Point C, and the renegotiation of the Flint Group\u2019s lease of 2,600 sq m in \u0141\u00f3d\u017a 1.<\/p>\n

Savills research has revealed that demand for office space in \u0141\u00f3d\u017a has come in recent years predominantly from the IT sector. However, in the last six months, the occupier market was dominated by the financial sector and a new type of tenants: flexible space providers offering small office units as coworking spaces or serviced offices. Looking ahead, the projected growth of the business services sector will be a very important factor for \u0141\u00f3d\u017a in the coming years.<\/p>\n

According to Savills Office Market in \u0141\u00f3d\u017a report, between 2015 and 2018 the city\u2019s vacancy rate remained at below 10%. However, at the end of June 2019 it was pushed up to 12.1% mainly by the large volume of unoccupied space in office buildings completed in H1 2019.<\/p>\n

\u0141\u00f3d\u017a offers competitive office rents compared, for instance, to top destinations in Warsaw. At the end of June 2019, prime headline rents stood at EUR 12.00\u201313.50\/sq m\/month in \u0141\u00f3d\u017a compared to up to EUR 25.50\/sq m\/month in the capital city. Refurbished post-industrial buildings and tenement houses usually command lower rents ranging between EUR 8.00\u201310.00\/sq m\/month.<\/p>\n

\u201cGiven the rising vacancy rate and the large number of new office projects planned by developers, a question arises whether the current rapid growth of the office market in \u0141\u00f3d\u017a is reasonable. Lured by the undoubted potential of \u0141\u00f3d\u017a, developers have decided to make use of attractive lands available in the city. Thanks to a higher number of new projects, demand will come not only from companies in the expansion mode or new to the city, but also from tenants who don\u2019t have offices in Class A buildings but would like to relocate to modern schemes,\u201d adds Dariusz Karwa\u0144ski, Savills.<\/p>\n

\"Adam
Adam Pustelnik, Associate Director, Business Development Manager, Savills<\/figcaption><\/figure>\n

\u201cProximity to Warsaw is \u0141\u00f3d\u017a\u2019s great advantage over other regional office markets. Thanks to its strategic location, \u0141\u00f3d\u017a has become Europe\u2019s core logistics centre. The expansion of the warehouse market in Central Poland will also drive demand for office space within the city itself. In addition, \u0141\u00f3d\u017a has been a leading business services location in Poland for years. In my opinion, \u0141\u00f3d\u017a is bound to be successful,\u201d comments Adam Pustelnik, Associate Director, Business Development Manager, Savills.<\/p>\n","protected":false},"excerpt":{"rendered":"

\u0141\u00f3d\u017a is one of Poland\u2019s eight core regional office markets. Its total office stock is set to surpass 500,000 sq m in H2 2019, placing the city almost on par with Katowice and Pozna\u0144, but behind Tricity, Wroc\u0142aw and Krakow. By comparison, Warsaw has 5.54 million sq m of office space. At the end of […]<\/p>\n","protected":false},"author":1,"featured_media":1083,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[8],"tags":[447,2878,446,20,397,28,75,70,73,2865,64,74,317,72,82,71],"class_list":["post-1081","post","type-post","status-publish","format-standard","has-post-thumbnail","category-real-estate","tag-adam-pustelnik","tag-coworking","tag-dariusz-karwanski","tag-echo-investment","tag-ghelamco","tag-hb-reavis","tag-katowice","tag-krakow","tag-lodz","tag-mbank","tag-poland","tag-poznan","tag-savills","tag-tricity","tag-warsaw","tag-wroclaw"],"jetpack_publicize_connections":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/1081","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/comments?post=1081"}],"version-history":[{"count":0,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/1081\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media\/1083"}],"wp:attachment":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media?parent=1081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/categories?post=1081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/tags?post=1081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}