OFFICE MARKET REPORT LUBLIN 2017 Office space market in Lublin
OFFICE MARKET REPORT LUBLIN Lublin - an attractive alternative in eastern Poland Rents for the prime office space in Lublin remain relatively low in comparison to other major regional cities in Poland. It is estimated that in the coming years Lublin will maintain its competitive position. Modern office space with attractive rates provide the tenants with the opportunity to expand existing business operations and also attract new companies, including foreign ones. Lublin in terms of supply of modern office space is the largest office space hub in eastern Poland, and is constantly developing. Lublin much like Rzeszow is on the path to becoming an important business center of eastern Poland. CBRE Research & Consultancy 2017 CBRE, Sp z o.o. 2
Human capital Population 341,700 Students 69,700 Graduates 20,500 The number of universities 9 SSC/BPO/ITO Companies 18 Employment 5,000 Specialization Finance and accounting Call Centre Place in the Tholons 2014 ranking n/a Area range Existing 174,200 sq m Demand for office space Rental rates Prime: 10.50 (EUR / sq m / month ) Vacant surface 20.20 % A-class stock 43% Under Construction 21,700 sq m Demand 2017 YTD 6,600 sq m Absorption 2017 YTD 11,100 sq m BPO/SSC Demand 39 Average: 10.50 (EUR / sq m / month ) Effective: 8.50 (EUR / sq m / month ) Prime yields: n/a (%) 69,400 sq m Planned by the end of 2018 21,700 sq m CBRE Research & Consultancy 2017 CBRE, Sp z o.o. 3
Gross salary in the banking and financial sector GL Accountant: GL Senior Accountant: GL Team Leader: AP/AR Accountant: AP/AR Senior Accountant: AP/AR Team Leader: Gross salary in the HR sector and serv ices CS Junior Specialist: CS Specialist: CS Team Leader: Payroll Specialist: Senior Payroll Specialist: Payroll Team Leader: Gross salary in the IT sector 1st Line Support: IT Administration: Business / System Analyst: Developer: Tester: Team Leader: Ty pical rental terms Service Charge 10-12 (PLN / sq m / month ) FIT-OUT Budget 50-100 (EUR /sq m) Rent free 4-6 (months) Sources CBRE, Randstad - Q3 2017 CBRE Research & Consultancy 2017 CBRE, Sp z o.o. 4
Examples of the distance between the cities by means of transport LUBLIN Time Time Number of connections per day WARSZAWA 3h 3h n/a TRÓJMIASTO 6h 6h n/a KRAKÓW 5h 4h n/a WROCŁAW 8h 6h n/a POZNAŃ 7h 5h n/a KATOWICE 6h 5h n/a FRANKFURT n/a n/a n/a LONDYN n/a n/a 7 PARYŻ n/a n/a n/a SWOT analy sis Strengths Opportunities Weaknesses Threats Strong academic hub for Eastern Poland Relatively low salaries and lease rents Institutional support for BPO / SSC companies from governmental and local authorities Proximity to Warsaw and international airport Improving infrastructure - express road to Warsaw under construction Low costs of operations A number of new office buildings in the pipeline Strong support for the Eastern Poland BPO / SSC sector to expand in tertiary cities Undefined business districts Lack of access to highway Low availability of A- class office space Relatively long distance from southern Poland (Krakow, Wroclaw) Low number of BPO/SSC investors Constant outflow of young population Availability mostly in the pipeline buildings Limited experience of local authorities in terms of BPO sector CBRE Research & Consultancy 2017 CBRE, Sp z o.o. 5
Selected office projects in Warsaw Contact to us Kam il Tyszkiewicz Associate Director kamil.tyszkiewicz@cbre.com +48 22 544 80 16 +48 22 544 80 01 Anna Trę bicka Property Negotiator anna.trebicka@cbre.com +48 22 544 80 01 +48 608 662 479 Piotr Pikiewicz Senior Consultant piotr.pikiewicz@cbre.com + 48 22 544 93 49 + 48 785 830 192 2017 CBRE Sp. Z o.o.. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. CBRE Research & Consultancy 2017 CBRE, Sp z o.o. 6