Half a million square meters leased by business services centres
Up to 500,000 sq m of office space was leased in 2017 by companies from the business services sector. The positive trend should continue in 2018. According to the estimates by ABSL, 50 new centers will likely open in the upcoming months, which will in turn lead to high demand for office space.
Warsaw, 13 March 2018 – Advisory firm JLL analyzes the activity of companies from the business services sector in Poland in 2017.
“In 2017 alone, companies from the business services sector leased up to 500,000 sq m of office space in Poland. This represents one third of the overall demand registered in the major office markets, including Warsaw. Considering the ambitious investment plans amongst companies from the industry, we can also expect to see solid demand from business service centers for modern office space also in 2018. According to ABSL, 50 new centres will likely open in the following months, and companies already present in Poland will certainly continue to expand their workforce”, says Anna Młyniec, Head of Office Agency and Tenant Representation at JLL.
According to data from ABSL, 51 new business services centers were launched throughout Poland in 2017. Major exemplary new investments included J.P. Morgan, Swarovski or Hargreaves Lansdown. This all contributed to outstanding results in the area of demand, particularly in Warsaw (up to 100,000 sq m leases by the sector). The main metropolitan areas outside the capital accounted for 400,000 sq m – up to 60% of total demand for office space on regional markets. The biggest lease agreements concluded by companies from the business services sector included: a confidential tenant (25,500 sq m) in Poznań, Citi Service Center Poland (18,600 sq m) and J.P. Morgan (15,600 sq m) in Warsaw.
“Poland remains an attractive location for international investors, and over the last decade the country has established itself as the leader in the CEE’s business services sector. We also see this trend reflected on the Polish office market. Last year in Warsaw, Kraków and Wrocław, each saw business service centers lease 100,000 sq m. In addition, the sector claimed a record-breaking share of office demand in Łódź, with BPO/SSC companies responsible for 80% of office space demand in the city”, comments Mateusz Polkowski, Head of Research & Consulting at JLL.
The business services sector is one of the most rapidly developing branches of the Polish economy. ABSL analyses show that business services centers currently employ 265,000 people – about 20% more than in Q1 2017.
“Poland is a leader in terms of number of modern business services centres in the region. There are over 1,100 such centres, owned by 750 investors, including 550 foreign ones. The sector creates 265,000 jobs. While maintaining the current upward trend, Poland will keep its position of the first-choice country for creating new centres. We estimate that in 2020 there will be over 300,000 jobs in the modern business services sector in Poland”, says Piotr Dziwok, President of ABSL.
The expansion of business services centres has not only changed the Polish office landscape, but also the working environment.