Rent rates in Krakow’s office buildings are falling

The office market in Krakow has significantly slowed down. Several investment situated in the city are at halt waiting for better economic situation.

According to “Gazeta Wyborcza” the office building market have significantly slowed down.

Jaroslaw Czerski from Monitor Rynku Nieruchomości enumerates investments of which erection works were halted by the investors: Pascal (Lea St.) and Mix (Jasnogórska St.), Bonarka4Business as well as Quatro Business Park. According to Czerski, developers are in possession of investments, which are yet to be begun because developers are waiting for more favourable market conditions.

The year 2009 was very difficult for tenants. However, according to Monitor Rynku Nieruchomości, the partial commencement of Bonarka4Business investment is a harbinger of improvement in the economic situation. Jaroslaw Czerski expects the unrented office space to be at 18 per cent before the end of this year.

Costs of rent are continuously and slowly decreasing. According calculations made by “Gazeta Wyborcza” costs of an A class space are 13 euro / sqm.  In turn offices of marginally lower standards can be leased for a price that is 2 Euro lower. One can also bargain with the developer to gain additional reliefs such as pre-equipped surface or rental holidays.

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