Tri-City is becoming increasingly popular amongst global players looking for optimal location conducive to further business development. Furthermore, the growing business image of the region is contributing to a great deal of interest in office space and boosting developer activity on the local market. JLL estimates that by 2021 the total office stock in the Tri-City area may exceed 1 million sqm.
“The last ten years have seen an extraordinary qualitative leap in the Tri-City labour market driven by record-breaking interest from international and Polish investors who wish to conduct business here. Tri-City's excellent performance stems from exemplary cooperation between local authorities, business and advisory agencies that work together to prepare a coherent strategy and develop promotional tools aimed at improving the investment attractiveness of the region”, comments Wojciech Tyborowski, Director of Invest in Pomerania.
“Trust amongst investors and developers in the Tri-City is reflected in the large amount of construction activity. Around 150,000 sqm of modern office space is currently under construction across the entire Tri-City agglomeration. As a result, we estimate that the office supply in the Tri-City area may exceed 1 million sqm by the beginning of 2021”, explains Marcin Faleńczyk, Head of Tri-City Office at JLL.
Demand for offices in 2017 was a record-breaking 113,200 sqm. Although the first half of 2018 saw moderate tenant activity of approx. 26,000 sqm, this total will increase with a number of transactions soon to be finalized.
“Tri-City is unique in terms of locations available for tenants. The combination of Gdańsk, Gdynia and Sopot ensures that a wide range of companies seeking office space in the Tri-City are able to find a location that meets their needs. Similarly, as in the case of other regional cities, companies from the business services sector generate the highest interest in modern office space. According to data from ABSL, business service centres in the Tri-City employ over 23,000 people. We estimate that companies from this industry currently occupy 33% of leased office space on the market”, adds Marcin Faleńczyk.
Analyses by Antal indicate that the Tri-City is an attractive location for employees. “In recent times we have recognized growth in Tri-City's attractiveness, both in the eyes of investors and employees. According to Antal Business Environment Assessment Study, Tri-City - one of the major urban areas in Poland - can boast the largest investment potential. Thanks to newly-developed office space, clean air and a friendly environment, more and more professionals and managers consider Tri-City for relocation. Students and graduates of Tri-City’s universities, who have just entered the labour market, enjoy excellent prospects for professional development without having to travel to either Warsaw or overseas. It is not without significance that the north of Poland has become an attractive place for young generations of Europeans affected by the economic crisis in Greece, Spain and Italy”, comments Monika Perko, Branch Manager at Antal Gdańsk.
Positive trends are reflected in the debuts of global brands on the Tri-City market. Arrow Electronics, Marine Harvest, Ricoh, State Street, and Swarovski Thyssenkrupp are just a few of the many new investors that have chosen this location. In turn, companies already present in the Tri-City area consistently extend the range of their current services. A great example of this is EPAM.
High net demand and net absorption observed in recent years have resulted in a decrease in the vacancy rate to 11.1% by the end of 2016. Furthermore, both the results from 2017 and the first half of 2018 showed a further reduction in vacancy rates. Currently, the rate stands at 6.7% (the lowest in Poland). This underlines the attractiveness of the region and encourages an optimistic outlook for the future.
Currently the highest rents in the Tri-City average at between €12.75 and €14.0 /sqm/month, which is a fairly competitive rate compared to other regional cities.
