KRAKOW IN COMPARISON WITH OTHER EUROPEAN CITIES Julie Archambault / Senior Negotiator Michał Galimski / Associate Regional Cities / Office Department Cushman & Wakefield
Office Space Market in Krakow H1 2016
KRAKOW 850 589 SQM STOCK OFFICE IN H1 2016 84 158 SQM SUPPLY IN H1 2016 68 900 SQM POPULATION 760 000 SUPPLY IN 2015 184 668 SQM THE AVERAGE MONTHLY GROSS SALARY IN ENTERPRISE TAKE-UP SECTOR IN 2015 4 613 PLN 111 737 SQM TAKE-UP IN H1 2016 UNEMPLOYMENT 4,10% 118 596 SQM STUDENTS 180 000 TO BE DELIVERED IN 2016 201 923 SQM THE SHARE OF EMPLOYMENT IN THE SHARED SERVICES CENTERS IN 2016 24% TO BE DELIVERED IN 2017 6.00% VACANCY RATE
BPO, ITO, SSC, R&D SERVICE CENTERS IN POLAND Foreign centers Polish centers Sources: ABSL
KRAKOW 850 589 SQM STOCK OFFICE IN H1 2016 84 158 SQM SUPPLY IN H1 2016 68 900 SQM SUPPLY IN 2015 184 668 SQM TAKE-UP IN 2015 111 737 SQM TAKE-UP IN H1 2016 OFFICE STOCK POLAND Kraków 9,7% Wrocław 8,7% Tricity 7,5% Katowice 4,8% 118 596 SQM TO BE DELIVERED IN 2016 201 923 SQM TO BE DELIVERED IN 2017 Warsaw 57,0% Lublin 1,7% Łódź 3,9% Szczecin 1,9% Poznań 4,7% 6.00% VACANCY RATE Office Market Update H1 2016 Cushman & Wakefield
KRAKOW 850 589 SQM STOCK OFFICE IN H1 2016 84 158 SQM SUPPLY IN H1 2016 68 900 SQM SUPPLY IN 2015 184 668 SQM TAKE-UP IN 2015 111 737 SQM TAKE-UP IN H1 2016 SUPPLY OF OFFICE SPACE (IN THOUSAND SQ. M) AND THE VACANCY RATE IN KRAKOW 118 596 SQM TO BE DELIVERED IN 2016 201 923 SQM TO BE DELIVERED IN 2017 6.00% VACANCY RATE Supply (m2) Vacancy rate (%) H I H 1 2016 Cushman & Wakefield
POLAND, REGIONAL CITIES OFFICE MARKET TRICITY MODERN OFFICE STOCK 629,000 SQM SUPPLY IN 2016 140,000 SQM VACANCY RATE 13,5 % PRIME RENTS: 12-13,5 EUR POZNAN MODERN OFFICE STOCK 404,000 SQM SUPPLY IN 2016 22,700 SQM VACANCY RATE 13,2 % PRIME RENTS: 12,5-14 EUR Tricity WARSZAWA MODERN OFFICE STOCK 4,988,000 SQM SUPPLY IN 2016 440,000 SQM VACANCY RATE 15,4 % PRIME RENTS: in the City Center 22-24 EUR in Non- Central Locations 13-16,5 EUR WROCLAW MODERN OFFICE STOCK 757,000 SQM SUPPLY IN 2016 76,200 SQM VACANCY RATE 10,1 % PRIME RENTS: 12,5-14,5 EUR Poznań Wrocław Łódź Warsaw LODZ MODERN OFFICE STOCK 347,000 SQM SUPPLY IN 2016 39,400 SQM VACANCY RATE 9,7 % PRIME RENTS: 12-13,5 EUR KATOWICE MODERN OFFICE STOCK 398,000 SQM SUPPLY IN 2016 57,500 SQM VACANCY RATE 14,3 % PRIME RENTS: 12-13,75 EUR Katowice KRAKOW MODERN OFFICE STOCK 850 589 SQM KrakówSUPPLY IN 2016 118 596 SQM VACANCY RATE 6 % PRIME RENTS: 12,5-14,5 EUR H 1 2016 Cushman & Wakefield
THE SHARE OF EMPLOYMENT IN THE SHARED SERVICES CENTERS IN 2016 Sources: ABSL
KRAKOW IN COMPARISON WITH OTHER EUROPEAN CITIES
50000000 OFFICE SPACE (M2) STOCK 2016 40000000 30000000 20000000 10000000 0 Cushman & Wakefield
5,00 4,50 4,00 3,50 3,00 2,50 2,00 1,50 1,00 0,50 0,00 Q2 2016 Q2 2015 Q2 2014 Paris Moscow Milan Rome Brussels Stockholm Madrid Frankfurt Copenhagen London Munich Million sq.m Hamburg Oslo Berlin Amsterdam Dusseldorf Istanbul Warsaw Barcelona Lisbon Athens Vienna Sofia Dublin Prague Budapest Bucharest Manchester Luxembourg Glasgow Birmingham Bratislava Edinburgh Krakow AVAILABILITY BY MARKETS Cushman & Wakefield
Number of years of available supply 850 589 SQM Quarter 2 2016 STOCK OFFICE IN H1 2016 84 158 SQM 0 1 2 3 4 5 6 7 8 9 10 SUPPLY IN H1 2016 Krakow Bratislava Luxembourg 68 900 SQM Budapest London SUPPLY IN 2015 Prague Warsaw Berlin 184 668 SQM Edinburgh Bucharest TAKE-UP IN 2015 Manchester Munich Oslo Q2 2016 Q2 2015 Q2 2014 Barcelona 111 737 SQM Birmingham HamburgTAKE-UP IN H1 2016 Dublin Paris Glasgow Vienna Dusseldorf Moscow Frankfurt Madrid TO BE DELIVERED IN 2016 118 596 SQM Brussels Sofia Amsterdam Lisbon Stockholm Athens Milan TO BE DELIVERED IN 2017 Copenhagen Rome 201 923 SQM # of years 6.00% VACANCY RATE Cushman & Wakefield
Vacancy Rates Sofia Moscow Istanbul Warsaw Amsterdam Rome Milan Bucharest Prague Dublin Lisbon Stockholm Budapest Madrid Frankfurt Copenhagen Brussels Athens Oslo Dusseldorf Barcelona EUROPE Manchester Birmingham Bratislava Paris Edinburgh Hamburg Glasgow Krakow Munich Berlin Vienna Luxembourg London 0% 5% 10% 15% 20% 25% Cushman & Wakefield
140,00 134,91 Monthly Rent / sq.m. 120,00 100,00 80,00 60,00 40,00 20,00 65,83 52,51 39,58 33,33 22,92 51,35 37,00 29,00 20,72 49,33 39,60 34,00 34,96 30,83 25,00 24,50 26,50 24,00 25,00 21,00 18,00 13,00 20,00 21,00 18,50 45,00 35,08 31,84 34,54 35,08 15,50 14,50 - Cushman & Wakefield
EMEA Office Market Wave Q2 2016 Rent growth slowing Still landlord favorable but growth is down from peak SLOW GROWTH Oslo Krakow Istanbul Moscow Kyiv Athens Budapest, Geneva, Sofia Edinburgh, Luxembourg City Lyon, Prague Vienna, Marseille, Brussels Zurich, Bucharest, Rome Warsaw, Bratislava Rent growth accelerating Ideal for owners of property Frankfurt, Munich Manchester, Barcelona, Helsinki Berlin, Antwerp, Copenhagen Hamburg Amsterdam, Madrid Birmingham, Milan, Paris Dusseldorf, Glasgow, Lisbon ACCELERATING London Stockholm Dublin LANDLORD FAVORABLE TENANT FAVORABLE DOWNTURN Rent still elevated but falling from top of market cycle Falling rents promise future opportunity for tenants RECOVERING Rent at or near bottom of market cycle Ideal for tenants leasing or seeking to lease property Cushman & Wakefield
THANK YOU! CONTACTS: Michał Galimski Associate Mobile: +48 722 202 013 michal.galimski@eur.cushwake.com Julie Archambault Senior Negotiator Mobile: +48 695 340 242 Julie.archambault@cushwake.com Cushman & Wakefield Polska Sp. z o.o. Kamienica Parkowa, Szlak 67 31-153 Kraków, Poland www.cushmanwakefield.pl www.remobile.pl