Office real estate market in Łódź – upward trend

Kopcińskiego 79 in Łódź (visualization)
Kopcińskiego 79 in Łódź (visualization)
Colliers International sums up the office real estate market in Łódź. According to the paper, the supply of modern office space in the city amounts to 350 00 sq. m and tenants have 67 modern buildings at their disposal at the end of the third quarter of 2016.

The demand for office space amounted to 30 000 sq. m at the beginning of 2016. Nearly a half of the contracts signed this year are new transactions. It is worth pointing out that the previous year ended with a record-breaking level of lease at 63 500 sq. m.

 

It is obvious that Łódź is currently experiencing “upward trend”. We have been observing a revival in demand and supply of office areas within the last several years. The enhancement of the image of Łódź resulting from successful city and regional investments as well as big human potential and perfect location bring effects such as new investors, who can also be found in the office sector – says Marcin Włodarczyk, Regional Director of Colliers International in Łódź. 

 

Experts of Colliers International point out that the characteristic of the office real estate market in Łódź is relatively high participation of postindustrial designs adjusted to modern office standards.

 

Nearly 90 per cent of the supply is located in the central part of the city along the West-East corridor. The remaining part of office space is located outside Śródmieście, in northern and western part of the city as well as in the southern and eastern zone. 

 

In spite of vast areas delivered to the market in Łódź within last five years, that is 115 000 sq. m, the vacancy rate maintains below 10 per cent. 

 

The office real estate market in Łódź still offers competitive lease conditions in comparison to other regional cities. The rents in older buildings are at the level of 8-11 EUR/sq. m/month, and at the level of 12-13.5 EUR/sq. m/month in new designs.   

 


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