Office market booms in Kraków

With an office stock level of over 1 mln sqm, Kraków remains the largest regional market in Poland. The city is growing quickly and is attractive to both developers and tenants. This has resulted in a high level of investment in the city with a large amount of leased office space. Currently, there are 26 buildings under construction in Kraków, which will deliver almost 270,000 sqm of modern office space in total. Around 170,000 sqm of this space will be delivered by the end of the year. The number of new developments in recent years has been increasing rapidly, making Kraków one of the cities in Poland with the youngest average age for its office buildings. More than half of the existing assets are no more than five years old. Such a large office stock on the Kraków market is beneficial for tenants, who used to have a very limited choice in terms of space and location. Colliers’ data from 2017 and in the first quarter of 2018 shows that Kraków had a vacancy rate of 9 pct,