What is being built in Kraków?

Office real estate market experts are noticing the first signs of animation.

Office real estate market experts are noticing the first signs of animation. A greater interest in office space lease, and its direct result, a bigger demand, noted by the lessors, are the proofs of that. However, some of the analysts claim, that real estate market in Cracow, despite the signals of better economy, is still in the phase of recession and that this trend will not change until at least the end of 2010. In the last few years, we have noted in Cracow a very large increase in new office space, which obviously affected the fall in prices and the growth in the rate of uninhibited flats. The rate of vacant space, remaining the same ever since, is still fairly high, so a conviction that  we what we experience is an animation may, in fact, be strongly exaggerated.

An expected increase in modern office space in Cracow in 2010 is smaller than during corresponding time last year. However, new investments are still being planned and accomplished. We can expect, that further investment on the office real estate market will be held back in the following years, the reason being the excessive supply, generated in the last few years. In the following years, the market will aim at the balance of supply and demand. Larger amount of the space on market is also connected to the harsher competitiveness, and, as a result, to the more attractive prices.

After Poland joined the European Union, we observed a shortage of modern office buildings, designed to meet the expectations of foreign companies. The majority of the large corporations, besides having a large budget devoted to the lease of space, also have high expectations, concerning adequate standards, which the building, being the company's office, has to meet. The majority of space for lease, offered at the time, has been taken the tenants fairly quickly, mainly because of the shortage in supply. Currently clients can choose the company's localisation from a wide range of completed and currently built investments. A lesser demand on the market means also that the tenants have it easier when negotiating lease prices. Besided modern technical standard, for clients the localisation (easy access to the object) and good communication between the real estate and the rest of the city are extremely important.

Among the investments, built in Cracow, it is worth looking at Platinum, on Kordylewskiego street. The investment is conducted by an experienced company Bryksy Group. The real estate is located in Cracow's centre and the localisation is one of the biggest assets of the building. Historic character of the Cracow's market square in fact makes it impossible to build megastore commercial real estates in the proximity of the centre. In that situation, investors try to find a place for the investment that will be well-communicated with the centre and other parts of the city. In the case of Platinum that condition is met thanks to the proximity of Rondo Mogilskie and Rondo Grzegórzeckie, as well as the vicinity of the offices, banks, commercial and service real estates. In the building there is 1225 msq of modern open space for development on the first and the second storey of the building. There are also two business premises, 334 and 128 msq big, located on the ground floor. In the basement of the building there are parking spaces for cars and bicycles as well as storage rooms.

Fronton company also offers space for lease in very good localisation. The investment is constructed on Kamienna street, in the proximity of Galeria Krakowska, Kraków Główny station and Nowy Kleparz. Because of the modern standards, office space in the building was designed as open space. Thanks to that, the clients will be able to organise the office freely. According to the design, the building will have six storeys, with one level devoted to garages and a car wash. Description of the investment, found on the developer's website, shows, that the object will have a wide range of restaurant, conference and recreational back-up facilities.

Investments, described here, are a proof of how persistently the investors try to adapt their offers to market's reality. Office buildings currently being constructed not only have to be in an attractive localisation. They also have to meet high quality standards, which slowly become a necessary condition for the investment's competitiveness in that part of real estate market.

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