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The Buma Group is one of the largest Krakow developers. From the beginning of its operations in 1991, this company has built 57 thousand sq m of lettable office space, which accounts for some 25% of all such space in Krakow (compare this with GTC, which has built some 30 thousand sq m).
Last year, the Buma Group constructed and commercialised 14 thousand sq m of office space by commissioning two buildings: the Rondo Business Park office development (8 thousand sq m of lettable space) located near the Polsadu Roundabout, and the Onyx office building (6 thousand sq m of lettable space), built in the Powstancow Wielkopolskich Ave. Both buildings have won recognition: the Rondo Business Park office building, designed by Ingarden & Evy Architects, won the first prize in the "Public building architecture" category of the "Krakow – my home" poll organised by the Gazeta Krakowska daily, and honours in the Competition for the Stanisław Witkiewicz Prize of the Małopolska Region, while the Onyx office building, designed by the Krakow-based MOFO Architects, was put forward as a candidate for the Janusz Bogdanowski Prize last December.
The largest tenants are Electrolux, which has leased 5 thousand sq m in the Onyx building, and Capgemini, which occupies 4 thousand sq m in the Rondo Business Park building. The tenants are mainly companies representing the Business Process Outsourcing sector.
So far, the situation on the Krakow office space market was comfortable for developers, as demand clearly outpaced the supply. Now supply is catching up, and in the coming future it may even exceed the demand. This will certainly be due to the increased resources of modern office space: several developments which are currently at a very similar stage of construction are scheduled to be completed by the end of 2009. What is also significant are the effects of the global economic crisis. The uncertain situation has meant that in the last quarter of 2008, many companies postponed their decisions to lease, and some have even withdrawn from negotiations conducted.
The last months have been marked by uncertainty. "It is difficult to project how the situation will develop, will there be stagnation, or will BPO companies move to e.g. India, where labour is cheaper and rents lower" – says Piotr Michalski. However, regardless of the uncertain market situation, the Buma Group does not intend to suspend its operations. "In 2008, we were also able to prepare a development in the direct neighbourhood of the Rondo Business Park – this one is called the Quattro Business Park. We are in a good situation as we have already received a loan for this project and so have financing secured, but the construction of subsequent stages will depend on how the market situation develops. We have already started work on the first office block and have got up to the sixth storey above the ground. So far these are only reinforced concrete works. We plan to finish the first stage at the end of 2009. We are also preparing a development in the Ruczaj district, where we have approximately 2 hectares near Motorola and the Jagiellonian Innovation Centre. Next June we would like to start constructing the first of three buildings there, but this will also depend on the market situation."
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