Latest News  

JLL: Office market in CEE continues to grow

Approximately 2 million sq m of office stock remain under construction across Central and Eastern Europe. The business services sector with its compound annual growth rate of 17% is one of the major factors generating the expansion of office markets throughout the region, reveals a JLL release.

2015-10-20 17:48:08

JLL analyses office markets in Central and Eastern Europe with regards to business services sector growth and publishes the results in the latest "Business Services in Central & Eastern Europe 2015" report, prepared by ABSL in partnership with McKinsey & Company, and in cooperation with JLL, ANTAL and Baker & McKenzie.

"Companies from the business services sector employ 335,000 specialists in CEE and remain the biggest employers throughout the entire region. Furthermore, 86% of the sector′s companies predict an increase in employment by the end of 2016", says Wojciech Popławski, Vice President ABSL, Director, Accenture Operations Poland.

According to the ABSL report, Poland, with 150,000 employees in foreign capital business services centers, leads the way in the CEE region, followed by Romania (50,900), Hungary (45,400), the Czech Republic (40,500), Slovakia (29,400) and Bulgaria (18,900). Employment forecasts are more than promising. According to McKinsey & Company, over the next 10 years, the business services sector in the CEE region may expand to 850,000 - 1 million jobs.

This development is a result of a combination of advantages such as access to qualified staff, geographical and cultural proximity, relatively attractive business costs as well as a diversity of locations where companies can launch their services centers.

"Central and Eastern Europe offers a wide range of office locations for conducting business, differentiated by offer packages, costs and quality. Across CEE, companies have a wide selection of lease options that meet needs and budgetary requirements. The range of rents differ from country to country and market to market, but average monthly costs can be estimated from €10 to €15 per sq m in the major office locations", comments Anna Młyniec, Head of Office Agency and Tenant Representation at JLL Poland.

Strength of scale
Economic growth within Central and Eastern Europe and an inflow of new investments from the business services sector is one of the factors generating the dynamic expansion of office markets throughout the region.

"Over 1 million sq m of modern office space is estimated to be delivered to the CEE markets during 2015. Currently, approximately 2 million sq m of office space is under construction across the region. Poland accounts for 1.4 million sq m of stock under development", says Kevin Turpin, Head of Research CEE at JLL.

As at the end of H1 2015, over 725,000 sq m of space was under construction (and some 28,000 under refurbishments) in Warsaw, over 170,000 sq m in Wrocław, and ca 155,000 sq m in Kraków. Prague has 148,000 sq m under construction. This development activity translates into increased office space availability, creating favorable market conditions for tenants.

The biggest in CEE
The biggest office market in Central and Eastern Europe is Warsaw, with up to 4.5 million sq m of stock, followed by Budapest with almost 3.25 million sq m, Prague with over 3.12 million sq m, Bucharest with 2.25 million sq m, Sofia with 1.7 million sq m and Bratislava with 1.54 million sq m. Office markets outside of capital cities are developing as well. The total office stock in Kraków is 690,000 sq m, 642,000 sq m in Wrocław, 526,000 sq m in the Tri-City while in Brno it is 478,000 sq m, in Ostrava - 205,000, and in Timisoara -110,000. The market′s development is predominantly stimulated by tenants from the business services sector - new entrants as well as existing companies who are expanding their structures.

"More employees mean more office space is required and, as a consequence, more office space is leased. In Poland alone, business services centers occupy approximately 1.5 million sq m and the volume continues to grow. The business services sector is the major office tenant, especially in cities outside Warsaw. We estimate that the sector′s share in office take-up on major Polish markets outside Warsaw hit 60% in H1," explains Mateusz Polkowski, Associate Director, Research & Consultancy at JLL Poland.

Spectacular demand
Overall demand (gross take-up) for office space in H1 2015 in the capital cities of Central and Eastern Europe amounted to more than 1.1 million sqm.

"It was a very intense time on the Polish office market and across the region. Gross take-up in Poland totaled ca. 690,000 sq m in H1, and the major markets outside Warsaw experienced record-breaking demand for office space – approximately 300,000 sq m by the end of June. Also taking into consideration the volume of space leased in Q3, it is believed that 2015 would be another strong year on the Polish office market. During the first nine months of 2015, JLL advised business services companies in a number of large lease transactions across Poland, confirming the sector′s strong demand", explains Anna Młyniec.


0 COMMENTS ^ Go back to Top
WRITE A COMMENT ^ Go back to Top
 
Your email address will not be published.
Nickname
Email
Comment
Validation Code
   
 
 
NEWS
The most appreciated companies from the outsourcing industry, awarded at ABSL Gala 2018 Romania

The most appreciated companies in the outsourcing industry were awarded last night, at the ABSL Romania Awards Gala, a recent announcement of the company stated.

 Read Full article »
Cybersecurity Tech Accord: 34 leading companies sign pledge to fight cyberattacks to promise equal protection for customers worldwide

Companies across every layer of internet communication vow to defend against misuse of their technology; promise to protect all customers regardless of nationality, geography or attack motivation.

 Read Full article »
Accenture study finds 87 percent of focused cyberattacks are prevented

With ransomware and distributed denial of service (DDoS) attacks on the rise, the average number of focused cyberattacks per organization has more than doubled this year compared to the previous 12 months (232

 Read Full article »
Romanian software group expands to Bulgaria

Romanian group Global Technical Systems, which specializes in software development and providing technological solutions for building efficiency and security infrastructures, aims to double its turnover this ye

 Read Full article »
Vodafone Survey: Romanian youngsters would rather work for themselves, than for a company

Romania ranks first in terms of percentage of youngsters who would rather work for themselves/be an entrepreneur than for a company, with 51 percent expressing this preference, according to Vodafone survey.

 Read Full article »
Bucharest office market: Over 30 per cent of the demand came from the companies that moved from old buildings in modern projects

Companies have rented in the first quarter almost 70,000 square meters of office space in Bucharest, one third of the demand came from companies that formerly had its headquarters in old, small buildings or in

 Read Full article »
ABSL Romania: The Business Services sector has thousands of jobs available for young professionals

The Association of Business Service Leaders in Romania (ABSL) announces thousands of positions available for young professionals with little to entry-level experience in the business services sector. Accounting

 Read Full article »
Zitec rents 1,700 sqm at Vastint's Timpuri Noi Square

Vastint Romania has leased 1,700 sqm of office space to Zitec, in the mixed-use development project at Timpuri Noi Square in Bucharest, the developer recently announced.

 Read Full article »
Ness Digital Engineering reached 100 employees in Timişoara and 2,800 sqm in the UBC 2 building in the Openville mixed-use project

In March, Ness Digital Engineering reached a 2,800 sqm area in the United Business Center 2 (UBC 2) building located in the Openville Timişoara development, after taking over a new floor of the office building

 Read Full article »
Timpuri Noi Square awarded the highest LEED certification

Vastint Romania was awarded LEED Platinum certification for the first two office buildings of Timpuri Noi Square.

 Read Full article »
 
 
MOST READ ARTICLES
» BPO: the ideal breeding ground for BPI
» Romanian software group expands to Bul...
» Deloitte opens European Regional Deliv...
» Large office space leases dominate the...
» Bitdefender: Half of Romanian fear tha...
» What do digital, automation and outsou...
» CBRE: Bucharest will witness a fivefol...
» Oracle study: Less than half of employ...
» CBRE: Bucharest and Budapest should be...
» CBRE: Romanian outsourcing industry ha...
 
EDITOR CHOICE
The voting for The Brand of the Year 2018 in Outsourcing and Shared Services is now open!

Outsourcing Today presents the fourth edition of the annual Romanian Outsourcing & Shared Services Awards, the event that recognizes, rewards and celebrates the success of the most prominent companies acting in

 Read Full article »
Romanian Outsourcing & Shared Services Summit: The very definition of millennials is change

Adapting to future workforce trends whilst balancing intelligent automation, digitalization, and millennial teams was one of the most discussed topic of the second session of the Fourth Edition of Romanian Outs

 Read Full article »
Stefanini invests in AI and reinforces Sophie's capabilities

Recently, Stefanini announced it is reinforcing its investments in Sophie, an artificial intelligence platform with the ability to turn data into valuable solutions. Fully developed within Stefanini's research

 Read Full article »
Romanian Outsourcing & Shared Services Summit: Diversity is value

The second session of the recently ended Romanian Outsourcing & Shared Services Summit highlighted topics on the future workforce trends such as digital transformation, automation, the repositioning of the impo

 Read Full article »
ROMANIAN OUTSOURCING & SHARED SERVICES SUMMIT, with Irina Sersun-Gürtler, Noerr: Bringing the employees on board

This March, the professionals, leaders and key voices in the outsourcing and business shared services industries joined for three rounds of lively knowledge exchange within the Fourth Edition of Romanian Outsou

 Read Full article »
Latest News  
 
about us | newsletter | contact | members area
Copyright © 2015 by Diplomat Media Events Design by Diplomat Media Events