Krakow Commercial market Overview

Updated 05/06

Office space*

New office space available for lease in Krakow currently stands at approximately 131,000sqm. This is roughly equally distributed between the city centre and less central locations. Demand for office space in Krakow continues to grow.

15,000sqm of new office space was leased in 2005 and this is expected to increase to 20,000sqm in 2006. The IT industry is predicted to be the principal acquirer of new office space.

In 2005, high quality office rents remained stable at a range of 12 to 15 Euros/sqm per month. Rents for secondary office buildings also remained stable at a range of approximately 9 to 12 Euros/sqm per month.

Retail space*

Total modern retail stock in Krakow is currently in the region of 293,000sqm. This is predominantly out of town shopping centres, clustered around high population residential districts. Supply of retail space continues to grow with 38,000sqm delivered in 2005 and with the completion of Galeria Krakowska due for completion in autumn 2006. This development scheme, know as ‘new town’, will offer more than 250 stores with a total lease area of 60,000sqm. 12 months prior to opening 90% of the retail space had been reserved.

Demand for modern well located retail space is still outstripping supply in Krakow. City centre street locations can expect to generate 40 to 70 Euros/sqm (approximately 27 to 47 GBP) per month and shopping centre plots typically around 30 Euros/sqm per month.

* Ober Haus – Real Estate Market Report 2006.