Office

Office market review of the year

12 January 2018

Nearly 40 transactions, dynamic growth across regional markets and focus on close cooperation with startups is how the past 12 months are being summarized by the Office Agency Department at BNP Paribas Real Estate Poland.

The year 2017 was good for BNP Paribas Real Estate Poland consultants active in the office sector. The advisory team completed transactions with the total volume of 46,000 sqm, where the majority comes from lease transactions. Additionally, the list of executed contracts includes provision of comprehensive advisory services during the sale of one of the properties from the BGŻ BNP Paribas bank portfolio, where a new owner took over a property located in the near vicinity of the Wrocław Opera House and Wrocław’s city hall.

Growth in the regions

The second quarter saw the addition to the Office Agency Department of a unit responsible for projects in the Kraków and Katowice region. It was in Lesser Poland’s capital that the agency obtained an exclusive mandate for commercialization of Diamante Plaza, one of the first A class office buildings developed on Zabłocie brownfield land. Over the past several years the building has recorded 100% occupancy and starting from Q1 2018 it will offer approx. 7,500 sqm of space. Its business surroundings and convenient access to public transport mean that the property is extremely attractive for tenants representing the BPO/SSC and public sectors.

The advisory team has its presence in the south of Poland, however it is actively operating throughout the country. A significant event in 2017 as regards offices in regional cities was drafting of the design for and commencement of refurbishment works within the office part at Kupiec Poznański. This is a property with the total area of 20,500 sqm, out of which 10,000 sqm are taken up by offices. The building, recognizable across Greater Poland’s capital, will soon gain a new reception dedicated exclusively to office tenants. Furthermore, modifications will be introduced to the common areas on all of the building’s floors. The list of planned changes covers replacement of existing elevators and comprehensive renovation of elevator lobbies.

Over the next 12 months the Office Agency Department at BNP Paribas Real Estate Poland plans to expand in another region with significant growth potential: the Tricity is developing dynamically and attracting investors from Scandinavia, the United Kingdom, Germany and the US.

Growth across regional markets will be coupled with expansion of our advisory offer by, amongst others, aspects relating to work environment. This year our team of consultants will be joined by a workplace analysis and design expert. And we are not talking purely about design in its traditional sense. This is to do with the different office functions to befit the diverse work models. There are no two organizations alike, therefore the process of designing an office space to last several years should right from the start allow for and address the specific needs and expectations

Małgorzata Fibakiewicz, Head of Office Agency, BNP Paribas Real Estate Poland

Towards startups

Market estimates show that between 40 and 45 percent of all employees derive from the young generation. They, colloquially referred to as millennials, expect a differently thought out, designed and functioning workplace. The answer to their needs are the increasingly popular co-working spaces and instant offices. Additionally, a popular solution here are virtual offices. Evidence of the increasing importance of projects implemented with startups and those young and mobile in mind can be found in the latest transactions completed by BNP Paribas Real Estate Poland, which is why the advisory offer addresses the needs and expectations of startups.

Co-working is one of the most dynamically growing trends on the commercial property market. Last year we put a considerable effort into in-depth recognition of needs of new organizations and startups. We analysed the various growth models and how different office stock can be made to fit them. The projects implemented by us for startups so far show that the myth that rent is the essence of an office has collapsed for good now. Seeing how thriving this particular market segment is and having in mind the evolving occupier needs in this respect, we wish to respond to them by using our know-how and expertise and prepare a comprehensive advisory offer

Adrian Bojczuk, Associate Director, Office Agency, BNP Paribas Real Estate Poland