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NEW PROJECTS. By the end of the year, the capital of Małopolska will have over 400,000 sq m of modern office space to let.
Krakow's landscape is changing right in front of our eyes, also due to the newly-built high standard office buildings. Instytut Analiz Monitor Rynku Nieruchomości (Analysis Institute - Real Estate Market Monitor) estimates that approximately 160,000 sq m is currently under construction in the city. "We expect that by the end of the year, the total area of high standard office buildings will exceed 400,000 sq m of offices. There are several clearly dominant developers here, including the BUMA Group with 48,000 sq m, Trigranit with 32,000 sq m, GD&K Group with 60,000 sq m (this company will take on the conversion of the unfinished "Szkieletor" high-rise, to be called TREI-Morfa), and GTC, which has almost completed building 20,000 sq m. Office space in those facilities will be for leasing. The average rent in Krakow is between EUR 17 and EUR 18 per sq m. On top of this, there is a service charge of EUR 3 per sq m. We expect that the rents will fall due to the high exchange rate of the euro" - says Jarosław Czerski of the Analysis Institute. The Krakow-based BUMA Group is constructing a large office development called the Quattro Business Park near the Polsad roundabout. Altogether, this will comprise 4 high standard buildings. The first one of them, of 12,000 sq m, is currently under construction. The situation is similar on the Bonarka project, where 4 office buildings of 8,000 sq m each are to be built next to a huge shopping centre. "Construction is advanced on the first two buildings, which are to stand on the south side, opposite the main entrance to the Galeria Bonarka Shopping Centre" - says architect Artur Jasiński, the president of the Artur Jasiński and Partners Architectural Firm. Negotiations with tenants are in progress. These buildings will probably be commissioned early next year.
The international GTC Group is continuing to extend a large office development in the Armii Krajowej St. The fourth building under construction there, 5,200 sq m in area, is called Pascal (those completed before are Newton, Galileo and Edison). GTC is also finishing the construction of the Kazimierz Office Centre with 12,000 sq m. Construction is also in progress on the 10,000 sq m Diamante Plaza in the Dekerta Str. Other new office blocks will be VINCI with 25,000 sq m, Krakowskie Centrum Biurowe (11,500 sq m) and Portus (8,000 sq m).
A large retail and office building is being built by MTX Nieruchomości in the Jasnogórska Str.: 1,800 sq m of retail units and 6,600 sq m of offices on three floors. A new development is also being prepared by the Skalski Group, which is building a class A office building of some 10,000 sq m in Pachońskiego St. This facility will be commissioned in the first quarter of next year. Modern office buildings are erected not only in the centre of Krakow, but also outside its limits. The Zabierzów Business Park houses new office buildings with the total area of 30,000 sq m.
How about owning space?
Large developments of mixed functions which are being built will offer a lot of commercial space both to sell and to let. One such project is constructed by Activ Investment in the Okulickiego St., near the Rydygiera Hospital. It will offer commercial units from 50 to 210 sq m. (The building is under construction and is to be commissioned in the second quarter of 2010). These properties will be sold at prices starting from PLN 5,100 net per sq m.
"There are several clearly dominant developers in the city" -says JAROSŁAW CZERSKI, INSTYTUT ANALIZ MONITOR RYNKU NIERUCHOMOŚCI.
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