Offices in Krakow, i.e. the strongest local commercial real estate market in Poland
Although Warsaw remains the main Polish business center, Krakow is not far behind. The Krakow office market is commonly called the leader of regional markets. There is more and more modern office space in the capital of Lesser Poland, and the liking of the city, among others, by IT companies drives demand in the commercial real estate market. Tenants have a lot to choose from here.
Offices in Krakow – market data
Compared to 2017, office resources in Krakow increased year-on-year by more than 16 percent and amounted to 1.3 million square meters, thus strengthening the position of Krakow as the second largest office market in the country – behind Warsaw (5.5 million square meters of office space) and before Wrocław (over 1 million square meters of office space). The vacancy rate should also be mentioned here: in Krakow, at the end of 2018, it was 8.6 percent, which means a year-on-year decrease by 1.2 percentage points.
According to Cushman & Wakefield, new supply in 2018 amounted to over 155,000 square meters, and tenant activity in Krakow in 2018 amounted to 211,000 square meters, which was by 5% higher compared to last year. When it comes to new investments, the forecasts for 2019 are even better – a total of 190,000 square meters of usable space are expected to hit the market. Only in the first half of the year, 12 office projects were completed, including such real estate as:
- #V. Offices (21,650 square meters),
- Mogilska Office (12,500 square meters),
- Dot Office F1 (9,800 square meters).
The largest office investments completed on the market in 2018 include:
- Equal Business Park C (23,500 square meters),
- O3 Business Campus (19,200 square meters),
- the first phase of the Podium Park complex (15,700 square meters).
You can submit an inquiry regarding space in these and other office buildings in Krakow today through Realko24. Search for the building you are interested in and fill out the form to contact the landlord without any broker.
How much do offices in Krakow cost?
The Cresa’s „Occupier economics: Rynek biurowy w Krakowie I poł. 2019” report indicates that the price per square meter of office space in the city center is on average around 14 euros, and outside the center 12 euros. This means that for 500 square meters of office space in an attractive location you have to pay an average of EUR 7,000 per month in Krakow. It is similar to Wrocław and much cheaper than in Warsaw, where prices per square meter in the best locations reach 24 euros per month.
Trends on the Krakow office market
Experts note two trends regarding the commercial real estate market in Krakow. The first is the gradual migration of companies towards the city center. Offices in Krakow are quite dispersed. On the one hand, we have commercial spaces in Business Park Kraków in suburban Zabierzów. On the other hand, there is the Technology Park in Czyżyny, modern office buildings at Aleja 29 Listopada, on Prądnik Czerwony and those growing near the very center. It is the center that offers more and more office space, and companies are eager to move in this direction.
The second trend that experts pay attention to is the development and growing popularity of mixed use offices. These are areas that are part of larger complexes, including the commercial, service and hotel section. Such multifunctional projects attract tenants who pay special attention to a friendly and creative work environment. Rather, these are not places for large corporations, but for smaller companies that are looking for coworking space.
There are plenty of coworkers in Krakow. For example, BiznesLab offers up to 3000 square meters of rentable space in a flexible model. In the capital of Lesser Poland, there are, among others, Cowork Mrowisko, Coworking Rynek 28, Tu Popracuje or Studio of Creative Cooperation at Królewska.
Office market in Krakow – summary
Krakow is dynamically developing and creates excellent conditions for business development. Companies can choose from a wide range of office space – from small rooms in atmospheric tenement houses, to offices in modern A-class buildings, of which there are more and more in the city. The significant dispersion of commercial real estate on the city map means that tenants have considerable freedom in choosing the location for their business.
