wrocŁaw - outsourcing portal...wrocŁaw wrocław with over 635,000 inhabitants is the economic and...

Office market

WROCŁAW Wrocław with over 635,000 inhabitants is the economic and cultural centre of Lower Silesia. As the third largest academic centre in the country, it offers access to diversified and well qualified human capital resources. Its convenient geographical location that provides proximity to the Czech and German markets has a positive impact on business development.

The competitive advantages of the city include the high quality of municipal support for business provided by the Wrocław Agglomeration Development Agency. Well thought out strategies for investment acquisition have allowed a strong business hub to be created based on technology, known as the Polish Silicon Valley.

The third largest centre for business services in Poland numbers over 34,000 people employed in 111 SSC/BPO centres. This represents an approximate 70% increase in employment in the past three years. Companies that are developing in Wrocław include Atos, BNY Mellon, Credit Suisse, Geoban, HP, Nokia Solutions, SII and Volvo. The majority comes from the US and Switzerland. Wrocław is the nationwide leader in the number of R&D centres with a growing number of KPO operations.

Expats appreciate Wrocław as a very friendly city to live. The local authority is investing in modernising road infrastructure – new bridges and new sections of the inner and outer ring roads. Improvements in public transport and the development of a park-and-ride system are also supposed to ease traffic in the city.

1 The largest office markets in Poland

DISTANCE TO WARSAW 350 km

TRAVEL TIME TO WARSAW

SPECIAL ECONOMIC ZONE

3h30’

3h10’

UNEMPLOYMENT RATE WROCŁAW

637,100

2.8%

NUMBER OF STUDENTS

NUMBER OF GRADUATES

120,000 30,800

NUMBER OF UNIVERSITIES

AVERAGE MONTHLY SALARY

25 PLN 4,570

POPULATION DOLNOŚLĄSKIE

2.9 million

UNEMPLOYMENT RATE DOLNOŚLĄSKIE

7.3%

HEADCOUNT AT BPO CENTRES*

POPULATION WROCŁAW

NUMBER OF BPO CENTRES*

11134,200Source: Advisory Group TEST Human Resources,

Central Statistical Office, Google maps* ABSL report: „Business services sector in Poland 2016“

Office market

The largest office markets in Poland2

Source: Colliers International Poland, based on PORF, 2016

WROCŁAW/ Office market

LARGEST BUILDINGS UNDER CONSTRUCTION Building Developer GLA (m2) Sagittarius Business House Echo Investment 25,000

Retro Office House LC Corp 18,100

Green 2Day Skanska 15,000West Link Echo Investment 13,900Wroclavia Unibail Rodamco 7,500

NEW SUPPLY 2010 – 2016 (M2)

0

50 000

100 000

150 000

2010 2011 2012 2013 2014 2015 2016 2017f 2018f

OFFICE STOCK BY COMPLETION YEAR (M2)

53% 28% 12% 7%

0% 20% 40% 60% 80% 100%

0-5 years 6-10 years 11-15 years over 16 years

Wrocław is the second most rapidly developing regional market in Poland. In the last year, the supply of modern office space reached almost 850,000 m2. Therefore, 22% of total office space available in Poland’s eight main regional markets is located here.

Wrocław is considered to be a recognisable and attractive outsourcing location for BPO and SCC tenants, and the city has received awards in international rankings.

In 2016, new supply delivered to the market reached a record level of 139,000 m2, an increase of 57% compared to the previous year. Fifteen projects were opened for tenants. Thanks to the high level of activity among developers, 53% of existing space is less than 5 years old, which is the highest percentage among the main regional markets.

The local market is rather dispersed and with a significant absence of distinctive business districts. The highest proportion of modern office supply – about 40% – is located in the central part of the city. The second location most preferred by developers the western part of Wrocław – Muchobór and Fabryczna.

Currently, about 120,000 m2 of office space is in the construction phase, from which 70% is planned to be delivered in 2017. Projects located in the city centre include for example Green 2Day, Sagittarius, Twelve and Wroclavia.

SUMMARY 2016

SUPPLY

SUPPLY (M2)

VACANCY RATE (%)

SPACE UNDER CONSTRUCTION (M2)

847,800

12.5

121,900

NEW SUPPLY(M2)

DEMAND (M2)

RENT (EUR/M2/MONTH)

139,100

124,500

12.5-16.5

Office market



WROCŁAW / Office market

DEMANDGross annual demand for office space in Wrocław is displaying an upward trend for the fourth year in a row. At the end of 2016, the take-up transaction value reached the record level of 124,000 m2 and was 11% higher than in the previous year. Also, the absorption of office space achieved a record level of 86,000 m2 (+2% y-o-y).

New deals were still the dominant part of total activity (63%). Expansions among current tenants reached 9%, renegotiations and extensions 13% and transactions for owner’s use 14%.

Pre-let transactions amounted than 50,000 m2 in the last year more, which confirms the good condition of the leasing market in Wroclaw. Projects under construction with high interest among tenants included Business Garden Wrocław, Green 2Day, Nicolas Business Center and Wroclavia.

About 23% of space planned to be delivered in the current year is already leased.

According to estimations, 2/3 of tenants activity from last years was generated by BPO/SSC companies.

The average size of a leasing deal in 2016 amounted to 1,600 m2, but only half of all deals were for more than 770 m2. Eight transactions were concluded for more than 5,000 m2. Five of them were pre-let deals, while the other ones included the occupation of a building made for Kaufland, the renegotiations of Credit Suisse in the Grunwaldzki Center and a new deal by Dolby in the Business Garden complex.

SELECTED OCCUPIERS IN WROCŁAWTenant BuildingIBM Wojdyła Business ParkHP DominikańskiNokia Networks West GateCredit Suisse Grunwaldzki CenterBNY Mellon Sagittarius Business HouseCatlin PegazOpera Software HieronimusSilicon & Software Systems Nicolas Business Center

DEMAND – MAIN SECTORS

DEMAND 2010 – 2016 (M2)

PROFESSIONAL SERVICES

IT & TELECOMS

11%

28%

FINANCE INSURANCE

RETAIL

30%

13%

0

30 000

60 000

90 000

120 000

150 000

2010 2011 2012 2013 2014 2015 2016

Demand Pre-let deals

DEMAND BY DEAL SIZE (M2)

16% 31% 23% 30%

0% 20% 40% 60% 80% 100%

<1,000 1,000-5,000 5,000-10,000 >10,000

Office market



WROCŁAW / Office market

VACANCY

RENTS

The vacancy rate in Wrocław increased from 8% at the end of 2015 to 12.5% at the end of the last year (+4.5 p.p. y-o-y).

There is 106,000m2 of available space in the Wrocław market. About 60% of this stock is located in 14 buildings that were delivered for use in the last two years. In ten of them, 25% of office space is available for tenants. Recently finished projects need from 12 to 18 months for space absorption.

It is estimated that the majority of existing buildings (92%) are at least half-leased.

The vacancy rate will keep rising in the coming quarters thanks to the record level of activity among developers.

Despite the persisting tenant interest, the Wrocław office market offers stable leasing conditions; however, rent levels are among the highest in regional cities.

Asking rents in new projects are EUR 12.5-16.5/m2/per month. In older buildings, asking rents are EUR 10.5-14/m2/per month.

The market in Wroclaw is a neutral market for tenants and owners. As incentives, developers are offering rent-free periods - usually one month free from rent for each year of a leasing agreement and a fit-out budget, which is negotiated individually depending on size of the leasing agreement.

According to forecasts, asking rents will remain stable.

VACANCY RATE IN MAJOR MARKETS

14.2% 14.0%

7.2% 6.2%

13.6%

11.1%12.5%

0%

4%

8%

12%

16%

20%

RENT EUR/M2/MONTH

12.5-16.5

13-16.5

12.5-15.5

12-13.5

13.2-15.5

12.5-14.5

10 12 14 16 18

Wrocław

Tricity

Poznań

Łódź

Kraków

Katowice

VACANCY RATE 2010 – 2016

0%

5%

10%

15%

20%

25%

VACANT SPACE (M2)

106,300OCCUPANCY LEVEL IN PROJECTS COMPLETED IN 2016

55.5%

Office market

The largest office markets in Poland5 The largest office markets in Poland5

Office market

In 2016, positions in IT departments continued to be the best paid ones. The incredibly high demand both among specialists and managers means that in this area we are dealing with the so-called employee market. In order to acquire the best people, companies must offer appropriately high salaries. This situation is connected with higher turnover in this area, especially when it comes to programming positions. In addition, it is increasingly more common to hire people without a relevant degree, but with experience and specialist knowledge related to the tasks that will be entrusted to them.

An increase in the number of job offers for highly qualified specialists could be observed in HR and finances. Among the offers for finance specialists, half of them is aimed at accountants.

Customer service is also growing dynamically. At the same time, it is a field with the highest turnover rate. In the past year, nearly every fourth customer service specialist changed their job. Unlike IT where employee migration is related mainly with the possibility of receiving higher salary at the new workplace, but in the case of customer service specialists, it is rather because the job can be tiresome and there is no career development opportunity.

IT companies in the Lesser Poland and Masovian Province continue to offer the highest salaries.

The same is true for salaries in other areas in this region. This is connected with an increasingly higher growth among foreign companies from the SSC/BPO/IT industry. Most centres of this type are located in Warsaw. The reason for this may be the high availability of office spaces, as well as of highly qualified personnel. However, centres in Kraków and Wrocław are also growing dynamically. An increasingly more frequent trend among Kraków students is starting their first job or paid internship during their college/university years. Therefore, they feed the ranks of junior specialists at Krakow corporations that take the initiative and introduce special programs enabling young people to get them started on their career path.

High competitiveness in the job market and the related high employee turnover means that salaries in other regions in Poland are also increasing, moving ever closer to salaries in the leading regions.

SALARIES

Office market


Office market

Source: Advisory Group TEST Human Resources, based on RaportPlacowy.pl., TEST expertise and selected external sourcesMonthly gross salary in PLNF&A - Finance and Accounting, HR - Human Resources, IT - Information Technology, CS - Customer Service

Q1: First quartile splits off the lowest 25% of data from the highest 75%Q3: Third quartile splits off the highest 25% data from the lowest 75%

Mazowieckie Śląskie Małopolskie Łódzkie Wielkopolskie Pomorskie DolnośląskieQ1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3

F&AManager 13,400 17,200 12,000 16,200 13,100 17,000 11,500 16,000 11,800 15,900 13,000 15,800 12,400 16,100Team Leader 7,800 10,100 6,300 9,700 6,600 9,900 6,100 9,600 6,700 9,400 6,800 9,800 7,000 9,500

Senior Spec. 5,400 7,400 4,900 6,900 5,400 7,100 4,900 6,600 5,400 7,100 5,700 6,900 5,500 7,100

Spec. 4,200 6,400 4,000 5,800 4,200 6,000 3,500 5,500 4,100 5,800 3,900 5,900 4,100 5,900Junior Spec. 3,200 4,500 3,400 4,400 3,400 4,400 2,700 3,900 3,400 4,200 3,000 4,400 2,900 4,200

HRManager 10,000 16,500 8,900 15,900 9,700 16,200 9,100 16,000 9,500 16,100 8,700 15,500 9,300 15,700Team Leader 7,300 9,700 6,800 9,200 6,900 9,500 6,400 9,300 6,600 9,400 6,300 9,200 6,100 8,900

Senior Spec. 5,600 7,400 4,400 6,900 5,300 7,000 5,100 6,800 5,100 7,000 5,200 6,600 4,600 6,900

Spec. 4,400 6,600 3,900 5,700 4,000 6,000 4,000 6,200 4,600 6,000 3,800 5,900 4,000 5,500Junior Spec. 3,700 4,500 3,000 4,000 3,200 4,200 3,100 3,800 3,000 3,900 3,000 3,700 3,000 4,100

ITManager 14,800 19,100 13,900 18,200 14,900 19,500 13,500 17,400 13,700 17,800 14,000 18,000 14,200 18,300Team Leader 11,000 14,300 10,000 13,800 11,300 14,800 10,400 13,500 9,900 13,700 10,700 13,800 10,100 13,900

Senior Spec. 8,500 12,100 8,100 11,800 8,700 12,300 7,700 11,000 7,900 11,500 7,800 11,400 8,300 12,000

Spec. 6,500 9,900 6,100 9,300 6,900 10,100 5,800 8,900 5,700 9,100 6,000 9,000 5,900 9,100Junior Spec. 4,200 5,600 3,700 5,000 4,400 5,700 4,100 5,100 3,600 4,900 4,100 5,200 4,000 5,100

CSManager 9,300 15,400 9,000 15,100 9,300 15,200 8,700 14,800 8,800 14,900 9,200 15,200 9,100 15,200Team Leader 6,700 8,900 6,400 9,200 6,600 9,100 5,900 8,900 5,900 9,000 6,200 9,400 6,000 9,100

Senior Spec. 5,700 6,600 5,000 6,300 5,100 6,400 4,600 6,500 5,000 6,100 5,500 6,700 4,600 5,900

Spec. 4,200 5,900 4,000 5,400 3,900 5,600 3,800 4,900 3,700 5,000 3,900 5,700 3,900 5,400Junior Spec. 3,400 4,600 2,900 3,900 3,300 4,400 3,200 4,100 2,700 3,800 3,500 4,700 2,500 3,700

SALARIES LEVELS IN SELECTED LOCATIONS

https://raportplacowy.pl/en/start.html

Office market


Office market

Considering the high demand for employees in these areas and at the same time the increasingly more equal level of salaries offered by employers, non-financial benefits are gaining in significance. Benefits are increasingly becoming a method that helps attract candidates. Thanks to such benefits, a company can differentiate itself from other companies that offer similar salaries.

The most often offered non-financial benefit is private healthcare. Nearly all managers and leaders employed at centres can count on receiving this benefit. Most employees can also include their family members in their healthcare coverage.

Aside from healthcare, the second most often offered benefit that has become the standard is subsidy for sports activities. It usually is of the same value, regardless of the position’s level, unlike other benefit packages which value increases with the position’s level.

Some companies also offer benefits specific for a given company, e.g. connected with the industry in which it operates (for example: discounts for flight tickets at a company offering services to airlines).

77% 77% 76% 74%66%

60%

45%

16%

0%

20%

40%

60%

80%

100%

BENEFITS

ADDITIONAL HEALTH CARE BENEFITS FOR EMPLOYEES

SPORT ACTIVITIES SUBSIDIES

SUBSIDIES FOR CULTURAL AND

ENTERTAINMENT GOALS

TRAININGS ADDITIONAL INSURANCES

EDUCATIONAL SUBSIDIES

VOUCHERS SUBSIDISED MEALS

Source: Advisory Group TEST Human Resources, based on RaportPlacowy.pl., TEST expertise and selected external sources


OUR SEARCH TOOLYOUR NEW OFFICE

OUR KNOWLEDGE

Are you looking for a new office in Poland, planning to consolidate several offices in one location or do you want to enter a new city?Visit OfficeMAP to get the information you need or speak to one of our office experts: + 48 22 331 78 00.Find your new office!

www.officemap.pl

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https://www.testhr.pl/en/index.html

Office market


Advisory Group TEST Human Resources

TEST is a consulting firm with over 25 years of tradition. It suppliers top-quality HR services to business and IT service centres through 5 specialised business lines:

TEST Executive,TEST Recruitment, TEST Consulting HR, TEST Training & Development, TEST Salary Survey.

TEST has supported the creation of over 50 centres in Poland by staffing over 4500 positions, starting from heads of centres to division managers and specialists, by analysing professional potential of several thousands of centre employees by means of Assessment/Development Centre and publishing a dozen of Salary Reports for the service centre industry. The company organises a series of HR Conferences in Business and IT Service Centres (www.HRwcentrach.pl), the first Polish events for HR managers of business and IT service centres.

RECRUITMENT DEPARTMENTMarcin SojkaSenior Business Development ManagerE-mail: [email protected].: +48 12 350 56 17Tel. kom.: +48 885 300 019

CONSULTING DEPARTMENT Agata Broś Senior Project Manager & Development Coordinatore-mail: [email protected].: +48 12 350 56 03Tel. kom.: +48 885 300 030

SALARY ANALISYS AND REPORT DEPARTMENTAgnieszka Keiper Senior Consultant Remuneration DepartmentE-mail: [email protected].: +48 12 350 56 14Tel.: +48 885 300 046

Dominika JedrakDirectorResearch and Consultancy Services+48 666 819 [email protected]

CONTACT:

Colliers International Pl. Piłsudskiego 300-078 Warsaw | Poland +48 22 331 78 00

Copyright © 2016 Colliers International.

The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No resposibility is assumed for any inaccuracies. Readers are encouraged to consult their profesional advisors prior to acting on any of the material contained in this report.

554 offices in 68 countries on 6 continentsUnited States: 153 Canada: 34 Latin America: 24 Asia Pacific: 231 EMEA: 112

2,3 billion €revenue in 2015

170 million m2

space under management

15,000employees

Colliers InternationalColliers International Group Inc. (NASDAQ and TSX: CIGI) is a global leader in commercial real estate services with 15,000 professionals operating in 68 countries. With an enterprising culture and significant insider ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include brokerage, global corporate solutions, investment sales and capital markets, project management and workplace solutions, property and asset management, consulting, valuation and appraisal services, and customized research and thought leadership. Colliers International has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals’ Global Outsourcing for 10 consecutive years, more than any other real estate services firm.

www.colliers.com

Colliers International has been active in the Polish market since 1997 and operates through offices in Warsaw, Kraków, Wrocław, Poznań, Gdańsk Katowice and Łódź with over 250 employees in total. The company has been often honored for its achievements by industry organizations such as Eurobuild, CIJ Journal, CEE Quality Awards and the International Property Awards. Colliers’ most recent distinction in Poland include the “Outsourcing Star”, given in recognition of its status as one of the most active real estate advisors in the outsourcing sector; and the “Gazele Biznesu” for being one of the most dynamically developing companies in Poland.

www.colliers.pl

Dorota KościelniakRegional Director | WrocławOffice Agency+48 882 014 [email protected]

wrocŁaw - outsourcing portal...wrocŁaw wrocław with over 635,000 inhabitants is the economic and...

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