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
Companies leased 105,000 sqm of office space in Q1 2019, with IT&C players top stars in a tight labour market

The Bucharest office market debuted in 2019 with decent numbers: a gross take-up of 105,000 sqm, out of which the net take-up was 29,000 sqm, and 93,000 sqm of deliveries. Data from the real estate consultancy

 Read Full article »
Microsoft report: Romania registers average malware attack rate of 7.46 per cent, over European average

Romania reached a 7.646 per cent malware attack rate in 2018, 2.13 per cent higher than the average European rate, according tot eh 24th edition of Microsoft Security Intelligence (SIR), released recently.

 Read Full article »
Blockchain StartUp Swazm signs partnership with Maguay, one of the biggest server and storage suppliers in Europe

Romanian Blockchain company Swazm has signed a partnership with Maguay, one of the biggest server and storage suppliers in Europe. The objective of the partnership is to expand the Swazm blockchain network by u

 Read Full article »
Deloitte research: Learning, employee experience and leadership, the main topics on human capital agenda in Romania

Continuous learning for skills development, leadership development and improving the employee experience are the most important and urgent among the trends identified by Deloitte 2019 Global Human Capital Trend

 Read Full article »
Oracle: Shifting toward a whole-enterprise cloud

Cloud technology and its adoption have been transformative for nearly every business, industry, and product. From running applications that are always-on and available, to limitless infrastructure scalability,

 Read Full article »
CBRE takes charge of the operations of NEPI Rockcastle's office portfolio in Bucharest

CBRE, the world and local market leader in real estate consultancy, was mandated with the property management of NEPI Rockcastle's office portfolio in Bucharest, consisting of three emblematical buildings: Flo

 Read Full article »
KPMG launches an application enabling real-time feedback of employees and managers

KPMG launches an application enabling real-time feedback of employees and managers

 Read Full article »
ABSL GALA AWARDS celebrated its winners last evening at Bucharest

As the voice of the business services, ABSL has created the ABSL Awards with the purpose of recognizing the most innovative, impactful and valuable projects and initiatives of the business services industry ove

 Read Full article »
Medium-sized companies relocate from class B to class A-offices in Timisoara

The office market in Timisoara witnesses a new trend: the relocation of companies from class B spaces to class A and the increase in attractiveness of modern office projects for firms with less than 50 employee

 Read Full article »
PropTech Romania organizes a hackathon in Bucharest, dedicated to real estate industry

Proptech Romania, the first Romanian innovation platform dedicated to the real estate market announced it is organizing the first European Real Estate Hackathon, in Bucharest, on the 12-13 April, an event that

 Read Full article »
 
 
 
MOST READ ARTICLES
» Huawei opens a centre on cyber securit...
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» Romania ranks above EU average in gend...
» Bucharest, in the top of cities in Eur...
» Berg Software Romania: Reasons to outs...
» Meet the experts who will decide the w...
» KPMG launches an application enabling ...
» Bogdan Pelinescu, president of ABSL: A...
» ABSL GALA AWARDS celebrated its winner...
» George Rotariu, CEO Bitcoin Romania: B...
 
EDITOR CHOICE
Marian V. Popa: Meet the speakers at Romanian Business Services Forum 2019 CEO LEADERS DEBATE, on May 7

Marian (Mike) Popa started his career in 1973 with the Romanian Chamber of Commerce, working for 10 years in Publicom – Foreign Trade Advertising Company. In 1983 he became General Manager of Rank Xerox Ltd

 Read Full article »
Catalina Dodu - Meet the speakers at Romanian Business Services Forum 2019 CEO LEADERS DEBATE, on May 7

Catalina Dodu runs the operations of Atos Romania since March 2014, with an experience of over 15 years in IT management. Previous to being appointed Country Manager, Catalina managed the System Integration div

 Read Full article »
Philippe Beucher: Meet the speakers at Romanian Business Services Forum 2019 CEO LEADERS DEBATE, on May 7

Philippe Beucher is the Managing Director of Accenture Operations – Danubia Region, leading the Operations entity for Romania, Czech Republic, Slovakia and Hungary starting from February 2019. For the past 1

 Read Full article »
Meet the speakers at Romanian Business Services Forum 2019 CEO LEADERS DEBATE, on May 7th - Matthieu Pasquier

Matthieu Pasquier is CEO of Societe Generale European Business Services since August 2018 bringing more than 27 years experience in Societe Generale group. During 2014-2018, Matthieu was Head of SG GSC Chennai

 Read Full article »
Sorin Mindrutescu among the speakers at Romanian Business Services Forum 2019 CEO LEADERS DEBATE, on May 7th

Sorin Mindrutescu is the Country Leader for Oracle Romania, as of February 2003. In this role, he is responsible for local sales and project delivery. In Romania, Oracle has two major business directions: the l

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