innovation driven city 2018 - €¦ · piwik pro, luxon led, time solutions and codesose, all based...

Innovation driven city 2018

Wrocław

“European Best Destination in 2018”

€8,934 Purchasing power per capita per year

(Source: MBR, 2017)

293 Average headcount

at business services centres (Source: ABSL, 2018)

154 Number of BPO/SSC/IT/R+D centres

(Source: ABSL, 2018)

45,100 Employment in the modern

business services sector (Source: ABSL, 2018)

€1,210 Average salary

(Source: Central Statistical Office, 2018)

+200 startups

+10 incubators for

young companies

+499 tech events

200 electric cars for rent

300 km of bike routes

in the city

+800 bicycles in

the City Bike System

+700 cultural events annually

58.5% of the city area is green

10 beaches

44 parks

2 Wrocław - Innovation driven city | 2018

Business environment Wrocław is an innovation driven city, with the largest number of R&D and IT centers among regional cities in Poland and the highest level of employment (source: “Business Services Sector in Poland 2018” by ABSL). Wrocław has been repeatedly regarded as the most business-friendly city including 2017/2018 Financial Times awards. Wrocław also heavily invests in infrastructure serving technological and R&D sector. Examples of such investments are: Wrocław Research Center EIT Plus (renamed to Polish Center for Technology Development - PORT) and Wrocław Technology Park (WPT). Three WPT residents were Polish Innovators Under 35 announced by “MIT Technology Review”. Moreover PORT resident - XTPL – was awarded with Presidential Economic Award 2017 in the category “best Polish startup” Wrocław FDi location Wrocław has been attracting foreign investors for years. Within 12 years over 200 investment projects have landed in the Wrocław area which resulted in creation of more than 95 000 jobs. All these projects got top quality support from Wrocław Agglomeration Development Agency (ARAW) - a public non-profit partnership established in 2006 by the city of Wrocław and surrounding communes. Nowadays the city focuses on technologically advanced projects – R&D centers, KPO, Industry 4.0, smart manufacturing.

Wrocław startup ecosystem In recent years, Wrocław has become a real startup hub. According to “Polish Startups” report prepared by the Startup Poland Foundation, the city is in second place in the country in terms of the activity of young technology companies. Additionally, in 2017, two of the three finalists of the Presidential Economic Award in the category “best Polish startup” came from Wrocław. They were XTPL and Blebox. In years 2017-2018, the leading positions in Deloitte’s reports describing such development were taken by: Tooploox, Droids On Roids, Monterail, Saule Technologies, Piwik PRO, Luxon LED, Time Solutions and Codesose, all based in Wrocław. Wrocław. Quality of life The cultural importance of Wrocław was reflected in being declared the European Capital of Culture of 2016. According to the „Quality of living 2018” report prepared by Mercer, Wrocław is among the one hundred best cities to live in the world. The city is developing efficient public transport (consisting of bus and tram lines, agglomeration trains and the City Bike System) and forms of smart mobility. Wrocław launched an electric car rental and electric scooter rental. Due to the high quality of life, Wrocław is one of the top Polish cities for relocation according to managers, specialists and expats. What is more, 88 % of students would recommend the city to their friends.

Wrocław. Innovation city

639,000inhabitants

(city)

806,000inhabitants

(agglomeration)

120,000students

+30,000graduates

Business Garden © Vastint Poland

Wrocław: The Meeting Place is how the city is branding itself. And indeed it is one. Wrocław is a unique place that combines rich history and beautiful historical sites with ultra-modern business activity and a vibrant, youthful atmosphere. It is a place where 75% of modern business services sector employees are from outside of the city (according to Mobility Report 2018), a place with a strong academic environment and dynamic growth in all sectors of the economy. The city shows no signs of slowing down and the outlook remains very optimistic. Wrocław is the third largest office market in Poland (after Warsaw and Kraków) but it is not losing ground to its competitors. On the contrary, the recent robust developer activity here has resulted in substantial growth of the total supply in the city, which is supported by the continuous confidence occupiers have in Wrocław. In Q2 2018 Wrocław crossed the one million m² of office stock threshold, which is an important milestone and the start of a new chapter for the city. It has become even more attractive to investors looking to expand their commercial real estate portfolios, companies seeking new locations for growth and developers wanting to accommodate the growing number of firms operating in the city. The expansion has resulted in new locations in Wrocław being created, with an excellent example of that being the area around the main railway station. New commercial developments such as Wroclavia, Sagittarius Business

House, Komandorska 12 and Retro Office House, along with existing office stock and infrastructural improvements, have created a new CBD-like area of the city. Also, new buisness hubs include the area of Jana Pawła II Square, which is excellent in terms of public transport availability and vicinity of the city centre. It is one of the communication hotspots of Wrocław, which is of great importance for companies looking for new home. Convenient location gives the tenant competitive advantage while competing for and retaining best talent. As a result, what stands out in Wrocław is the construction activity, which currently amounts to 210,000 m². Many established developers are present in Wrocław (such as Echo Investment, Skanska Property Poland and Vastint Poland), as well as local players (such as Archicom) and newcomers to the market (such as Avestus Real Estate with its Infinity project, BUMA Group and Cavatina). What results from all that development is Wrocław being an excellent investment product. It generates a lot of investor demand, which is proved by transactions by such well-known players as Deka Immobilien, DWS, Warburg-HIH Real Estate and many others.

Office market - thriving business hub

Infinity © Avestus Real Estate


1,040,000

Total modernoffice stock (m2)

€13.7-€14.5

Prime headline rents (m2/month)

169,500

Office demand 2017 (m2)

9.7%

Vacancy rate Q3 2018

Largest office developments under construction in Wrocław

Building Completion Office Area (m²) Developer Business Garden Wrocław – phase II 2019 70,000 Vastint Poland

Cu Office 2018/2019 23,500 Buma / Reino Partners

Centrum Południe 2020 23,300 Skanska Property Poland

City Forum 2019 22,600 Archicom

Nowy Targ 2019 19,400 Skanska Property Poland

Infinity 2020 18,700 Avestus Real Estate Poland

Carbon Tower 2018 17,600 Cavatina Source: JLL, Q3 2018

Bema Plaza © DEKA Immobilien

Wrocław - Innovation driven city | 2018 5

Sagittarius Business House © Warburg-HIH Invest Real Estate

Completions and vacancy rate in Wrocław 2010 – 2018

Source: JLL, Q3 2018; *Vacancy rate as of Q3 2018

Demand evolution in Wrocław 2010 – Q3 2018 (m²)

Source: JLL, Q3 2018

2017 was particularly spectacular for Wrocław in terms of demand, reaching a record-breaking result. One of the city’s key features is its ability to attract new investors, which has resulted in increased leasing activity year on year. Wrocław is one of the key locations in Poland for modern business services and employment in that sector is constantly growing: in Q1 2018 it reached 45,100 staff, which is an astonishing increase of 10,600 since 2016. It is important to note that Wrocław is home to a number of R&D centres, which further underlines the quality of the workforce in the city and the complexity of processes performed there. Moreover, not only global giants but also Wrocław-based companies are entering international markets, with brands such as Brand24, PiLab and Tooploox. Another hot-topic on Wrocław office market is rise of flexible spaces operators. That sector is expected to grow rapidly in the city and expand the offer on the commercial real estate market.

In 2015 the Wrocław market saw exceptional take-up figures, in excess of 127,000 m², with the robust leasing activity continuing in 2016. As mentioned above, 2017 saw an all-time-high result: 169,500 m². Such a volume was possible due to a number of high-profile leases being signed in the city. The largest transactions included a pre-let for 15,500 m² by Credit Agricole in Business Garden, a renewal for 14,200 m² by Credit Suisse in Grunwaldzki Center and a new deal for 13,100 m² in Business Garden by Capgemini. The positive market sentiment continued into Q1-Q3 2018, with 96,500 m² transacted on and the largest transactions being a 17,000 m² owner-occupier deal by BZ WBK (currently Santander Group) and 10,000 m² in Business Garden being leased by Santander Consumer Bank. The remarkable absorption volumes in the city contributed to a healthy vacancy rate of 9.7% in Q3 2018. Prime headline rents range between €13.7 and €14.5 m²/ month.


Map of major existing and under construction office developments in Wrocław

existing under construction

No. Building1 Aquarius Business House

2 Arkady Wrocławskie

3 Bema Plaza

4 Business Garden Wrocław phase I

5 BZ WBK HQ (currently Santander Group)

6 Centrum Biurowe Globis

7 Centrum Orląt

8 Dominikański

9 Green Day

10 Green Towers

11 Green2Day

12 Grunwaldzki Center

13 Komandorska 12

14 Kaufland HQ

15 Millenium Towers

16 NOBILIS Business House

No. Building17 Pegaz

18 Promenady Zita

19 Retro Office House

20 Sagittarius Business House

21 Silver Forum

22 Silver Tower Center

23 Sky Tower

24 West Gate

25 West House

26 West Link

27 Wojdyła Business Park

No. Building28 Wrocławski Park Biznesu I

29 Wrocławski Park Biznesu II

30 Business Garden Wrocław phase II

31 Carbon Tower

32 Centrum Południe

33 City Forum

34 Cu Office

35 Infinity

36 Nowy Targ


Wrocław labour marketOverview The Wrocław agglomeration forms one of the main locations for business services centres in Poland. Recently, many of the local investment projects have gained their ultimate organisational structures as a result of gradual professional development of formerly acquired employees. Every year, several new investments appear in the Business Services sector - companies transfer financial and accounting positions, IT, HR, as well as logistics and supply chain roles to Wrocław. Over the past year, companies such as Olympus and Schaeffler have decided to locate their centers in Wrocław, and several more have increased employment levels to a large extent. The trend that has been observed in the recent years is that more and more advanced positions are being located in Poland. Nowadays candidates are required not only to speak fluently in one of European languages but also possess specific knowledge and competences (including technical ones). Simple processes - for example these connected with invoice booking or wage calculation - are increasingly being replaced by software robots. Projects from the RPA area (Robotic Process Automation) are an expensive investment for companies, but with a sufficiently large scale of activity, it pays back within 2-3 years or even faster. Most new investments, as well as the most dynamic employment growth plans, can be observed in the IT sector. The Wrocław labour market offers career opportunities for both candidates starting their careers and experienced professionals. Internship programs offered to graduates and people willing to start a new career path are becoming more and more popular. In addition to the level of remuneration for candidates, the non-financial benefits offered are gaining importance. Cafeteria systems or private medical care have become a standard. Currently, lunch vouchers, funding of language courses, flexible working time or remote work are very popular, which is crucial when choosing an employer.

Trends The majority of companies plan to gradually increase their recruitment activity. Almost every employer looks to benefit from the good economic conditions by increasing employment. Companies generally work with specialists on a permanent basis but are also now more open to temporary employment and contracting. Same as for the whole of Poland, competition for the best employees is increasing. Employers are aware of the challenge they have to face. Employers also emphasise the growing demand for soft skills, among which they list proactive attitude, co-operation, communicativeness and creativity. There is also a distinct need for particular hard skills, the ability to analyse data and draw conclusions, knowledge of Excel software, as well as legal and specialism-related matters. Companies’ growing awareness of non-financial elements of job offers reflects a trend observed among the candidates actively engaged in the labour market. Employees who consider changing their job pay close attention to such aspects as career development opportunities, work-life balance and the opportunity to participate in interesting projects. Convenient office location is also becoming increasingly important.

Within which specialism does your company plan to recruit?* Employers’ perspective

*Top five answers; Source: Salary Guide, Hays Poland

The majority of companies offer their employees private medical care and sports cards. More than half of employers include in their package team-building trips and activities, and tools which are also available for private use. Life insurance, subsidised education and flexible work are other benefits that are gaining in popularity.


Position (years of experience) min* opt** max*GLJunior accountant (0–1 years of exp.) 3,800 4,200 5,000Accountant (1–3 years of exp.) 5,000 6,000 6,500Senior accountant (3+ years of exp.) 6,500 7,500 8,500Team leader (5–15 FTEs) 9,000 10,500 12,000AP / ARJunior accountant (0–1 years of exp.) 3,500 4,000 4,500Accountant (1–3 years of exp.) 4,000 5,300 6,000Senior accountant (3+ years of exp.) 6,000 7,000 7,500Team leader (5–15 FTEs) 9,500 10,500 12,000CUSTOMER SERVICEJunior specialist (no previous exp.) 3,800 4,000 4,200Specialist (1–3 years of exp.) 4,200 4,500 5,000Senior specialist (3+ years of exp.) 5,000 5,500 6,500Team leader (5–15 FTEs) 7,500 8,500 9,500PROCUREMENTJunior specialist (0–1 year of exp.) 3,500 4,000 5,000Specialist (1–3 years of exp.) 6,000 7,000 8,000Senior specialist (3+ years of exp.) 7,000 8,500 10,000Team leader (5–15 FTEs) 10,000 13,000 15,000

Salaries offered in Wrocław (PLN)Position (years of experience) min* opt** max*HR ADMINISTRATION PROCESSESJunior specialist (0–1 year of exp.) 3,500 4,000 4,500Specialist (1–3 years of exp.) 4,200 5,000 5,800Senior specialist (3+ years of exp.) 5,500 6,000 6,500Team Leader (5–15 FTEs) 8,000 10,000 11,000IT SUPPORT1st line support (0–1 year of exp.) 3,800 4,500 4,8002nd line support (1–3 years of exp.) 5,000 7,500 9,0002nd line support (3–5 years of exp.) 8,000 10,000 12,0003rd line support (4–7 years of exp.) 11,000 12,000 14,500DEVELOPERPython developer (3–5 years of exp.) 10,000 11,500 13,000.NET / C# developer (3–5 years of exp.) 13,500 15,500 17,500Java developer (3–5 years of exp.) 13,500 15,500 18,000IT TESTERManual tester (3–5 years of exp.) 7,000 8,500 10,000Automation tester (3–5 years of exp.) 10,000 13,000 15,000IT PROJECT MANAGEMENTIT project manager (3–5 years of exp.) 11,000 13,000 15,000

IT project manager (5+ years of exp.) 14,000 17,000 25,000

Ease of finding talent Number of open positions10 20 50

GL accountant (1–3 years of exp.) 1.5 months 3 months 6 months

AP / AR accountant (1–3 years of exp.) 2 weeks 1.5 months 4 months

Customer service (1–3 years of exp.) 2 weeks 1.5 months 4 months

HR admin specialist (1–3 years of exp.) 3 weeks 1.5 months 2.5 months

IT support 2nd line support (1–3 years of exp.) 1 months 2 months 5 months

Java developer (3–5 years of exp.) 3 months 5 months 7 months

.NET / C# developer (3–5 years of exp.) 3 months 5 months 7 months

Python developer (3–5 years of exp.) 2 months 4 months 6 months

IT project manager (3–5 years of exp.) 2 months 3.5 months 5.5 months

* Monthly gross salary in PLN for the position (full time).** The salary most often offered for the position. Knowledge of an additional language can affect the amount of compensation. Data for the payroll report has been obtained on the basis of recruitment conducted by Hays Poland.

Recruitability


Bonus Language

40% Danish, Finnish, Norwegian30% Czech, Dutch, French, German, Slovak, Swedish20% Portuguese, Russian

15% Spanish

© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. The information contained in this document is proprietary to JLL and shall be used solely for the purposes of evaluating this proposal. All such documentation and information remains the property of JLL and shall be kept confidential. Reproduction of any part of this document is authorized only to the extent necessary for its evaluation. It is not to be shown to any third party without the prior written authorization of JLL. All information contained herein is from sources deemed reliable; however, no representation or warranty is made as to the accuracy thereof.

Katarzyna Krokosińska Head of Wrocław Office JLL+48 660 661 183 [email protected]

Mateusz Polkowski Head of Research & Consultancy JLL+48 22 167 0000 [email protected]

Łukasz Dziedzic Research analystJLL+48 22 167 0000 [email protected]

Karolina GrzybHead of investment support unitAgencja Rozwoju Aglomeracji Wrocławskiej+48 728 393 553 [email protected]

Michał Karbowiak Project Manager Agencja Rozwoju Aglomeracji Wrocławskiej+48 660 098 434 [email protected]

Tomasz Kowalski Wrocław Branch ManagerHays Poland+48 722 277 444 [email protected]

Contacts

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