In terms of size, Łódź is currently the sixth largest regional office market in Poland. Investors are attracted by the city’s extensive pool of specialists and an increasingly strong business brand. Experts from JLL indicate that the increasing maturity of the Łódź office market is contributing to the development of state-of-the-art office clusters in the city.
According to data from JLL, 58,500 sqm of office space was leased in Łódź in 2017 with total office stock totalling nearly 438,000 sqm by the end of last year. These results are excellent news for developers operating on the Łódź market and encourage other prospective parties to look at investing in the city. The consistent development of the office sector in Łódź has led to the strengthening of existing business locations. It also means that office hubs have become increasingly well-defined.
“Numerous office investments are developed in the Central Business Axis of Łódź, particularly in the area from Kościuszki Avenue to the intersection of two major arterial routes, Piłsudskiego and Śmigłego-Rydza. The appeal of this area, which has around 120,000 sqm of office space developed so far, is its central location and the number of public transport options available. JLL indicates that if developments currently under construction, will be completed in accordance with their respective schedules, the Central Business Axis will grow by a further 100,000 sq m by 2020,” explained Tomasz Czuba, Head of Office Agency, JLL.
Existing office projects in the Łódź Central Axis include Symetris Business Park, Forum 76, Łódź 1, Łódzkie Centrum Biznesu, Textorial Park, Orange Plaza, Orion, RED Tower. Furthermore, schemes such as Imagine, Hi Piotrkowska and the OFF Piotrkowska Center are currently under construction in this area. It is also worth mentioning that the Monopolis project is also being developed in this location. The project, is without doubt, one of the most eagerly anticipated real estate investments and is one of the most exciting re-modernization projects in Poland. Monopolis will offer both modern office space for 2,500 people and extensive services as well as cultural and recreational amenities.
As Krzysztof Witkowski, President of the Management Board, Virako, said, Łódź has a number of eye-catching, post-industrial properties that have an enormous business potential and, if successfully modernized, can significantly improve the city’s brand.
“The aim of Monopolis is to help in the sustainable development of Łódź, while maintaining the atmosphere and rich heritage of the city. Such projects significantly enhance the attractiveness of a particular location, with a variety of special offer and exceptional architecture. And where there are people, there will be business”, added Krzysztof Witkowski.
However, the Central Business Axis of Łódź is not the only office location in Łódź. There other business areas that are beginning to make their mark as well.
“The office cluster emerging in the vicinity of Łódź Fabryczna railway station, in the Nowe Centrum Łodzi (The New Centre of Łódź – NCŁ) area, currently provides 44,000 sqm with the prospect of another 150,000 sqm coming on stream in the next few years. Currently, there are two major investments operating in NCŁ- Nowa Fabryczna and Przystanek mBank. A third project, Brama Miasta, is under construction. Furthermore, Ghelamco has recently presented a visualization for its modern multi-purpose complex with construction works due to be launched in June 2018. In addition, HB Reavis also owns land located in the NCŁ area. The company has selected Łódź to be the location for its first investment outside Warsaw. There are also plans for a Centrum Biurowe Fabryczna. It shows that the development of the Łódź office market is gaining momentum,” summarized Tomasz Czuba.
Savills Investment Management (Savills IM), the international real estate investment manager, transacted more than €3.6 billion globally in private real estate equity transactions in 2022 including c. €3.1 billion...