Office market in Tricity is not slowing down

Colliers International examined the state and perspectives of the Tricity office market

Currently, a record-breaking amount of office space is under construction in Tricity (151,000 sqm) of which 2/3 is planned to be delivered for use in 2017. BPO/SSC companies remain most active tenants. According to “The largest Office Markets in Poland | Tricity” report prepared by Colliers International, the international consulting company and Advisory Group TEST Human Resources, personnel consulting agency, these companies have increased the number of their employees by nearly 100 percent in the last three years. The publication includes also the analysis of salaries.

After the completion of 6 investments of a total space of 57,000 sqm, the total supply of modern office space in Tricity at the end of 2016 reached 634,000 sqm. Thanks to high level of activity among developers, 50 percent of existing stock is less than 5 years old. Sixteen percent of total modern office space available in eight main regional Polish markets is located here.

Currently, a record-breaking amount of office space is under construction – 151,000 sqm, of which 2/3 is planned to be delivered for use in 2017. About 90 percent of new supply will be located in Gdańsk and the other 10 percent in Gdynia.

“As much as 80 percent of office space under construction is located in large complexes and office parks. It is worth noting that Tricity has the highest share of these type of projects among regional cities,” says Błażej Kucharski, Regional Director, Colliers International, Tricity.

High demand for offices in Gdańsk

In 2016, the total take-up volume in Tricity reached a level of 93,000 sqm and was similar to the record-breaking level from 2015. The absorption of office space, even though it has decreased by 15 percent y/y, remains at the relatively high level of 44,000 sqm. Gdańsk office market is enjoying the highest interest from tenants. As much as 78 percent of total demand in Tricity in 2016 was registered here (72,000 sqm). A further 21,000 m2 was leased by tenants in Gdynia.

According to Colliers International estimations, more than half of tenants’ activity in recent year was generated by BPO/SSC companies, which hire nearly 17,000 employees working in more than 100 centres. This represents a 100 percent increase in employment over the past three years. The region gains an edge thanks to the access to employees speaking such languages as English, Swedish, Danish and Norwegian, hence centres with American and Scandinavian capital predominate in the local market. The average transaction in 2016 accounted for 1,050 sqm; however, only half of all deals exceeded 670 sqm. The vacancy rate in Tricity reached 11.1 percent at the end of the last year. In the whole Tricity market, 70,000 sqm are available, more than half of which is located in B/B+ Class buildings.

Stable rents

Tricity market offers stable leasing conditions and can be described as a tenant’s market. Compared to the other regional markets, asking rents are slightly higher. In new projects they account for EUR 13-16.5/sqm/per month. In older buildings, asking rents reach the level of EUR 10.5-13/sqm/per month. Colliers International estimates that rent rates will remain stable in the nearest future.

Salaries

In 2016, positions in IT departments continued to be the best paid ones. Very high demand both among specialists and managers means that in this area we are dealing with the so-called employee market. An increase in the number of job offers for highly qualified specialists could be observed in HR and finances. Customer service is also growing very dynamically.

Press release by Colliers International.

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Written by: Colliers International