2022-11-08-莱坊-Poznań_city_attractiveness_and_office_market_Q3_2022_8页_1mb

Summary of Poznań's Investment and Office Market (Q3 2022)

Core Content

Poznań is a highly attractive city for investment in Central and Eastern Europe, known for its dynamic development, strong economy, and quality of life. It is recognized as a leading city in various rankings, including the most dynamically developing city in Poland, and is noted for its business-friendly environment and support from local government. The city is also the only one in Poland to be featured in the Forbes ranking of the 20 best cities for Americans to live, invest and work in Europe.

Main Points

Economic and Demographic Overview

• City Area: 261.9 sq km
• Population (2022): 546,900 (GUS)
• Population Forecast (2030): 503,800
• GDP Growth: 11%
• GDP per Capita (2019): PLN 120,833
• Average Salary (Gross): PLN 7,200

Poznań has a growing economy and is attracting both residents and businesses through its open city strategy and efforts to improve the quality of life, including infrastructure, urban revitalization, housing, environment, and culture.

Office Market Overview

• Total Office Stock (Q3 2022): 620,400 sq m
• Supply Under Construction: 80,800 sq m
• Vacancy Rate (Q3 2022): 11.2%
• Take-Up (Q1-Q3 2022): 36,900 sq m
• Lease Volume (Q1-Q3 2022): 12% increase compared to 2021
• New Supply (Q1-Q3 2022): 0 sq m
• Lease Volume (July-September 2022): 9% of total regional contracts
• Service Charge (PLN/sq m/month): 15-23
• Rent-Free Period: 5-8 months
• Fit-Out Budget (EUR/sq m): 250-500

Despite the lack of new office supply, the market remains active, with a stable vacancy rate and a high take-up volume. Developers are preparing for future supply, with key projects like Andersia Silver (40,000 sq m, completion 2025) and Nowy Rynek E (20,000 sq m, completion H1 2023) expected to increase availability in the coming years.

Office Market Trends

• Vacancy Rate: 11.2% at the end of Q3 2022, second lowest among regional cities
• Rents: Stable, ranging from EUR 10.00 to EUR 16.00/sq m/month
• Demand Structure:
  • New agreements: 49%
  • Renegotiations: 44%
  • Expansions: 7%

Pressure from tenants to renegotiate rents and seek incentive packages may increase in the near future, especially in older buildings. However, rising construction costs and loan rates may limit investor willingness to negotiate, particularly in new developments.

Key Investment Incentives

• Scholarship Program: Supports students preparing for work in Poznań
• Employer Branding: Press conferences, media distribution, social media, and website promotion
• Government Subsidies: Assistance in obtaining grants, Special Economic Zones, and real estate tax exemptions
• Sector Analyses: IT, Modern Services, Language Potential, and other industry-specific reports
• Conferences: Events for IT professionals, such as the POZITIVE TECHNOLOGIES Conference
• Recruitment Solutions: Events, competitions, and collaboration in acquiring niche language speakers

Major Office Concentration Areas

Selected Schemes Under Construction

• Nowy Rynek E: 20,000 sq m, completion Q2 2023, developer: Skanska Property Poland
• Andersia Silver: 40,000 sq m, completion 2025, developer: Von der Heyden Group

Quality of Life in Numbers

• Bike Paths: 275.59 km
• Green Areas: 128.3 sq km
• Smart City Initiatives: Emphasis on innovation, technology, and education
• Climate Neutrality Strategy: In progress, with green areas, renewable energy, and public transport modernization
• Mobility Solutions: Car-sharing, scooter-sharing, and green transport initiatives
• Centre Project: Revitalization of the city centre, reduction of car traffic, and improved citizen experience

Labour Market Insights

Key Findings

• Dream Job Preferences:
  • Permanent contract: 80%
  • Working in a medium-sized company: 41%
  • Clear job description: 93%
• Preferred Leadership Traits:
  • Support for development: 48%
  • Respect: 47%
  • Professional management: 46%
  • Effective communication: 44%
• Company Size Preferences:
  • Medium-sized companies: 41%
  • Large companies: 30%
  • Small companies: 25%

Shared Services and Centralised Business Services (SSC)

• Market Growth: Steady annual increase in the number of people employed, companies, and countries involved
• SSC Focus: Centralization of complex processes, including finance, reporting, FP&A, taxes, and IT functions
• Talent Demand: High competition for skilled workers, with a growing interest in knowledge-intensive roles
• Wage Trends: Wage growth is ahead of inflation, with higher salaries for specialized roles
• Top Desired Positions in SSC Sector:
  1. FP&A Expert: PLN 12,000–18,000 gross
  2. Customer Service Specialist (non-English): PLN 6,000–10,000 gross
  3. Procurement/Supply Chain Specialist (non-English): PLN 9,000–12,000 gross
  4. Payroll Specialist (non-English): PLN 7,500–10,500 gross

Contact Information

• Knight Frank Poland:

  • Commercial Agency: T-REP Piotr Borowski
  • Strategic Consulting EMEA: Marta Sobieszczak
  • Research: Elżbieta Czerpak
  • Capital Markets: Krzysztof Cipiur
  • Valuation & Advisory: Małgorzata Krzystek
  • Industrial Agency: Michał Kozdroj
  • Website: www.knightfrank.com.pl

• Poznań City Investor Relations Department:

  • Website: www.poznan.pl
  • Email: inwestor@um.poznan.pl
  • Phone: (+48) 61 878 54 28

• Michael Page:

  • Website: www.michaelpage.pl
  • Email: contact@michaelpage.pl

Rankings and Recognition

• CEEBusiness Services Summit & Awards 2021: Most dynamically developing city in Poland
• 4th Financial Ranking of Local Governments in Poland: 1st place in cities with poviat rights
• 5th TOP WOMAN in Real Estate Awards: Recognized for Investor Service Office
• EuropaProperty Magazine: City of the Year 2021
• ABSL Ranking (2022/2023): 5th place in medium-sized cities
• Forbes Ranking: Only Polish city in the 20 best cities for Americans to live, invest and work in Europe
• Saint-Gobain - Polish Cities of the Future 2050: 1st place in Transport and Infrastructure
• ABSL Ranking (2022): 3rd place in overall quality of life perception
• Best Cities to Study Ranking: 3rd place

Conclusion

Poznań offers a strong investment environment with a growing economy, a dynamic office market, and a high quality of life. The city is actively working on sustainable development, modernizing infrastructure, and attracting talent through various initiatives and incentives. It is an ideal location for businesses, especially in the IT and modern services sectors, due to the availability of a qualified workforce and the presence of global companies such as Franklin Templeton, GSK, and Capgemini.