0.5 million sq m of office space
Soon, total office resources of Łódź will exceed 500 thousand sq m. of space. Over 100 thousand sq m. of offices is under construction and in the preparation phase for construction in the agglomeration, say Walter Herz analysts. Specialists estimate that in the projects which are to be completed before the end of this year, a total of over 70 thousand sq m of space is to be commissioned. Among the buildings to be completed this year is the first office building in Brama Miasta project, offering over 27.8 thousand sq m., Imagine A & B with over 17 thousand sq m. of offices, and the first building implemented in Monopolis complex, which will bring 8.6 thousand sq m.
Thanks to the significant acceleration of the development of the office segment in recent years, the city has been constantly strengthening its position among the largest business centers in Poland. - The demand for modern space in Łódź is growing, which is why despite the faster increase in supply, the vacancy rate in this region remains at a very low level of 8.6 per cent. Similarly to other major regional cities, most of the demand for offices is reported here by companies from the business services sector, with 23.2 thousand employees in 85 BPO, SSC/GBS, IT, R&D centers. The annual employment growth rate in this sector in Łódź reaches 14 per cent - informs Mateusz Strzelecki, Partner/Head of Regional Markets at Walter Herz.
Unique revitalizations on a global scale
- The growth dynamics of the office market in the region is also positively influenced by the development of the residential and warehouse sector, as well as the expansion of road infrastructure. Łódź market also benefits from the accessibility of attractively located investment plots and an extensive urban revitalization plan. Łódź has such unique projects as OFF Piotrkowska Center in the buildings of the nineteenth century old Ramisch factory, Monopolis in the former Monopol Wódczany, as well as Fusion in the Scheibler factory. Large urban-forming projects, such Nowe Centrum Łódzi, are also under construction in the agglomeration. A crucial factor in the development of the office segment in the city is also the wide access to qualified employees and lower rental rates compared to other regions, ranging from 11.5 - 13.5 € / sq m / month - adds Mateusz Strzelecki.
Reconstruction of whole quarters of the city
According to Walter Herz data, Łódź currently has nearly 475 thousand sq m. of office space. Its resources were enriched last year with offices commissioned in Ogrodowa Office investment, TME office building and Sepia Office.
Such projects as Brama Miasta Łódź B1 & B2 (41.4 thousand sq m.), Hi Piotrkowska 155 (21 thousand sq m.), Imagine A&B (17.2 thousand sq m.) and the office and commercial building of Fern Office at Off Piotrkowska Center, which will include over 3.6 thousand sq m. of space are currently under construction.
Moreover, in the heart of the city, between Piotrkowska, Tymienieckiego, Kilińskiego and Milionowa Streets, on the site of the former Karol Scheibler's factory, Echo Investment has recently started the construction of a mixed-use project Fusion. On almost eight hectares there will be 20 buildings with various functions, 14 of which are adapted historical facilities. The heart of the quarter, which will gain new life will be the historic building of the former combined heat and power plant. There will also be city squares, common spaces and green areas.
Two main office hubs
At the corner of Kilińskiego and al. Piłsudskiego Streets, the developer is simultaneously building the first building in REACT office complex, which in 2020 will provide nearly 15 thousand sq m. of space. The investment is to bring Łódź a total of almost 50 thousand sq m. of space.
P22 investment along al.Piłsudskiego Street by Ghelamco and HB Reavis project in Nowe Centrum Łódzi are also waiting for the beginning of construction. In addition, JJ Invest plans to build Centrum Biurowe Fabryczna at the corner of Kilińskiego and Narutowicza Streets.
Office hubs in Łódź are developing mainly in two locations. The first is situated at the Central Axis of Łódź, mainly in the area of the so-called intersections of marshals, where Monopolis and Imagine are under construction, and such office buildings as Symetris Business Park, Forum 76, Łódź 1, Łódzkie Centrum Biznesu are located. The second office area is expanding near Łódź Fabryczna station, where Nowe Centrum Łódzi is under construction. It includes, among others, Brama Miasta and Nowa Fabryczna office building, as well as Przystanek mBank.
Source: Walter Herz