The Łódź agglomeration (next to Krakow and Tricity) is currently the regional leader due to this year’s increase in supply and development of the office segment. The implemented and the envisaged investments in Łódź will create a complete new public space, mainly in the area of Aleja Piłsudskiego and Rydza-Śmigłego as well as Łódź Fabryczna railway station and EC1 power plant.
According to data presented by Walter Herz, the resources of modern office space in Łódź amounted to nearly 400 000 sq. m in the first six months of this year. Ca. 34 000 sq. m of offices were commissioned in the half-year. According to the experts, the volume of new supply will be at least doubled by the end of this year whereas data prepared by Walter Herz presents that there are currently 155 000 sq. m of office space under construction in Łódź. It is a record-breaking performance.
What attracts business to Łódź? First and foremost, Łódź has a great human potential. The image of this city is constantly improved by infrastructural development. What is more, this agglomeration is situated only 130 km away from Warsaw.
The biggest new office projects in Łódź are: Ogrodowa Office, Przystanek mBank, or Symetris Business Park. Many investments in Łódź are based on the existing and often historic revitalization of urban fabric. The revitalizations which are being currently conducted are one of the biggest in Europe. Thanks to the program Nowe Centrum Łodzi, Łódź Fabryczna railway station has already been redeveloped whereas EC1 power plant has been revitalized. Therefore, modern public space with Nowa Fabryczna complex and Brama Miasta, which is being erected from several months, has been created.
Nowe Centrum Łodzi is to offer functional business and entertaining space. This place can be visited by tourists thanks to improved communication (new underground railway line and railway station). There will be not only offices but also restaurants, cafes, commercial and service places and cultural and entertainment buildings. The revitalization will include residential and commercial buildings as well as recreation, cultural and communication infrastructure.
The popularity of office space in Łódź is really high and new supply is quickly absorbed by the market. The demand for office space in Łódź has been increasing for four years. Last year was record-breaking due to the volume of lease transactions (at the level of almost 68 000 sq. m). According to the analysts of Walter Herz, the demand for offices in Łódź has reached almost 30 000 sq. m in the first six months of this year.
The dominant part of transactions are new contracts, mostly pre-let contracts. According to the analysis conducted by specialists, the majority of demand is generated by companies from the sector of modern business services. Thanks to huge popularity of investors from the end of the previous year, the city of Łódź has the lowest office vacancy rate in the country, which totals 5.9 per cent, according to the estimates of Walter Herz.