In recent years, Łódź has enhanced its position as an important destination for companies from the business services sector in Poland. Numerous global brands, such as Accenture, Fujitsu Technology Solutions, Infosys, TomTom and Xerox, have established their business services units in Łódź.
“The city’s central location, large pool of qualified staff as well as a well-developed transport infrastructure make Łódź one of the most attractive locations in Poland. This is especially so for projects from the business services sector. The city is undergoing a major transformation. As a result, it is attracting investors who create new jobs, develop their structures by obtaining new, more advanced processes and, as a result, boost demand for office space. It therefore comes as no surprise that companies from the business services sector accounted for over 50 percent of the demand for office space recorded last year”, said Karol Patynowski, Director of Regional Markets, JLL.
Demand
The last two years have been very successful in terms of demand and absorption of new office space in Łódź. Demand for offices in 2015 reached an all-time high of 70,000 sqm thanks to the impressive lease transaction for 24,000 sqm signed by mBank. In 2016, demand was similar with a total of 66,700 sqm. The biggest lease agreements concluded last year included deals signed by Ericsson (in University Business Park) and Fujitsu Technology Solutions (in Nowa Fabryczna).
“This was also an excellent year for JLL in Łódź. We advised on the biggest lease transaction concluded last year in the city, which was signed by Ericsson for 8,400 sqm in University Business Park – an investment developed by GTC. We also represented Cybercom, TRW and Sage on their deals. As a result, JLL accounted for the highest share – 31 percent – in transactions conducted with the participation of advisory firms in 2016, cementing our leading position in Łódź,” added Izabela Ciszewska, Senior Consultant, Tenant Representation, JLL.
Supply
Total office stock in Łódź stands at 360,000 sqm.
“The office market in Łódź continues to rapidly develop. In 2016, stock increased by 36,100 sq m. A further 124,500 sqm remains under development, out of which 80,000 sqm will likely be delivered to market in 2017. What is interesting is the fact that over half of the space under construction has already been secured with pre-let agreements. Most of the space under development is comprised of four office projects: Ogrodowa Office, Przystanek mBank, Nowa Fabryczna and Hi Piotrkowska,” explained Łukasz Dziedzic, Consultant, Research and Consulting, JLL.
