One of the largest operators in Poland has expanded its office center in Kraków this year. Another three - in Warsaw, Wrocław and Gdańsk - are currently being expanded. All of this constitutes a total of over 3.000 sqm of new space. CitySpace wants to take advantage of the good economic situation and has plans to expand into new markets.
CitySpace - one of the largest flexible office operators in Poland, belonging to the Echo Investment Group - in the first half of 2020 the company increased the space it manages by over 3.2 thousand sqm. The newly opened office in the O3 Business Campus complex in Kraków has the largest share of the space, with the size of over 1.7 thousand sqm. In addition, centers in Warsaw (Beethoven), Wrocław (in the Nobilis Business House office building) and Gdańsk (in Tryton Business House) are also being expanded, and some of them have already started functioning. - The increase in demand for flexible space has been visible on the office market for several years. In addition, the situation related to the epidemic also helped to increase the interest in this sector. More and more companies need flexible solutions that allow to combine office work with remote work and service offices, allowing them to focus on running their operations. We follow this trend, increasing the supply of flexible offices - emphasizes Jarosław Bator, managing director at CitySpace.
Right now, CitySpace office centers are located in 5 Polish cities. A total of 10 locations: 5 in Warsaw, 2 in Wrocław and 1 in Kraków, Katowice and Gdańsk. The operator's domain includes serviced spaces, i.e. serviced and fully equipped, as well as flexible solutions adapted to the needs of tenants. CitySpace is also more boldly entering the hybrid office model, combining the advantages of private offices with coworking. - We base our expansion on the transformation of conventional offices into flexible offices, on the growing popularity of coworking and serviced offices, as well as on the attractiveness of our offer and its adaptation to the needs of companies - says Lisa Zettlin, head of business development at CitySpace.
Although Warsaw is still the largest market for flexible offices in Poland (56% of gross leasable space), 2019 saw a strong increase in regional cities, with 24.000 sqm of new flexible space (CBRE data). The fastest development was observed in Kraków (+11.450 sqm), Łódź (+11.000 sqm) and Wrocław (+2.200 sqm). CitySpace sees great potential in regional cities, that is why in 2019 the company opened an office for 275 workstations in Wrocław - in the Aquarius Business House building, that is located right next to the center. In both offices in Wrocław, the renting level is 90%.
Currently, CitySpace offers 2.3 thousand workstations using nearly 18 thousand sqm of flexible space. This gives an average of 8 sqm per single position, which distinguishes CitySpace from its competition. The multifunctional offices include private offices, large open spaces - for exclusive rent and adapted to numerous teams, coworking, virtual offices, meeting rooms, conference rooms, relaxation rooms, telephone booths, reception desks and kitchens. Office functions vary depending on location. The factor that does not change is that all rooms are fully equipped and furnished. The operator provides office equipment, office manager care, reception service, IT support and cleaning service. - Our biggest advantages include: the extensive network of locations, flexible lease term options, cost optimization, as well as the fact of belonging to the prestigious Echo Investment Group - says Jarosław Bator.
According to CBRE forecasts, the flexible office market in Warsaw will grow by 20% annually in the next 4 years, while the regional market by over 10%.