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On Point Document Tri-City Office Market Report November 2013 2 On Point • Tri-City Office Market Report • October 2013 Dariusz Bazeli General Director Geoban Polska “In 2008, Geoban established its branch offices in Poland. In its two office centres in Gdynia and Wroclaw, Geoban employs a team of more than 650 highly qualified professionals. As a result, the company can provide comprehensive banking services related to operational back-office services for businesses from the Santander Group in various countries. Geoban SA is a part of the Santander banking group, in which it plays an important role in implementing the group’s strategy for the management of operational risks, and for the implementation of effective policy actions through its centres located in eight countries.” Magdalena Reńska Head of Office, Gdańsk Jones Lang LaSalle “We are seeing increased interest in the Tri-City from developers and tenants. This trend is confirmed by the growing number of enquiries received both by Jones Lang LaSalle and institutions responsible for investor assistance. The market is dynamic and not only when newcomers from the modern business services sector are considered. Companies already established in the region, also appreciate the Tri-City and, as a consequence, improve local employment rates. In addition, potential tenants’ interest is having a positive impact on the office market, which can fulfill the tenants’ expectations in the area of location, availability and standard. This is in no small part due to the large amount of projects both existing and under construction”. Olivia Business Centre, Gdańsk On Point • Tri-City Office Market Report • October 2013 3 Why Tri-City? Improving transportation network and good connectivity • Access to the A1 motorway, the expanding ring road, new tunnel linking Wrzeszcz with Port Island • Regular and frequent flight connections with Polish and major and secondary European cities. 1 • Improving railway connections with major Polish cities, urban fast railway, planned metropolitan railway, and modernisation of the E65 railway line from Gdynia to Warsaw (by 2015). • New under construction airport terminal in Gdynia. • Developing seaports in Gdańsk and Gdynia High quality labour force • One of the major academic centres in Poland (28 higher education institutions, plus numerous research and development centres). • Developing research, science and innovation centres. 2 • 100,000 students in the Tri-City. • 26,000 graduates per annum, including 7,000 finance and nearly 1,000 IT graduates. • In addition to fluent English, which is a market norm, 30% of employees in the Pomorskie region speak German, 20% Russian and approximately 6% speak French or Spanish. Nordic languages are popular as well. Strong Economy • The Tri-City’s population is 748,000 people, while the metropolitan area is home to more than 1.2 million people. 3 • 21,700 registered unemployed, which equates to a 6.6% unemployment rate. • Economy geared towards high technologies: outsourcing of business services, finance and IT. High Quality of Living • Seaside location. • A city of vast cultural heritage which has considerable leisure facilities. 4 • Developed residential market, a variety of shopping and leisure centres, as well as a wide hotel base. Planned road, seaport and airport infrastructure improvements. Real Estate • Largest office market in northern Poland. • Wide choice of options for potential tenants. 5 • Competitive rents. • High construction activity. 4 On Point • Tri-City Office Market Report • October 2013 Economy Towards modern business services The Tri-City metropolitan area, home to more than 1.2 million Przekrój magazine. Among the 26 cities surveyed, Gdynia was people, is the leading economic hub in northern Poland. It acts as a named the best and Gdańsk was ranked third. vital transport hub, linking the north and west of Europe with the To support companies that open service centres in the Tri-City BPO central and southern parts of the continent. Education Center was established, thanks to collaboration between local service centres, public institutions and Sopot High School. The Recently, the Tri-City was awarded the prestigious ‘Best City of the Center is the first institution in Poland that aims exclusively at Year' title in the BPO/SSC Sector at the Polish Outsourcing & recruiting and training future employees of service centres. The Shared Services Awards Gala. The Tri-City competed for that title school has attracted recognized experts in accounting and with the other nominees: Cracow, Wroclaw and Poznan. It was the information systems, members of the staff, as well as specialists first contest in the Polish BPO/SSC sector aimed at identifying and from local service centres. The training program covers the most distinguishing domestic leaders. The winners were selected by important qualifications for service centre employees, including international jury consisting of experts from the BPO/SSC sector training in SAP, corporate accounting and a range of soft skills. representing service centres, consulting agencies and the most The course ends with a compulsory internship at a service centre, influential trade associations in Poland and in Europe. which is the final verification of the acquired knowledge. Its advantageous geographic location is a tremendous asset of the Also, the Economics Faculty of the University of Gdańsk has Tri-City metropolitan area, which results in good accessibility launched a new course “Finance in companies”, which is accredited through different modes of transportation. Gdańsk Lech Wałęsa by Association of Chartered Certified Accountants (ACCA). Thanks international airport can be reached by a direct flight from more to this accreditation students will obtain not only an MA degree in than 50 destinations, including major European airline hubs such financing but also an ACCA diploma that is recognized all around as Amsterdam, Copenhagen, Frankfurt, London and Munich. The the world. The Economics Faculty is also working to launch the large number of connections with German cities (Berlin, Dortmund, ACCA Examination Centre, which will be designed not only for the Hamburg) and Nordic cities (Bergen, Oslo, Stockholm and Turku) students of the new faculty, but also for all those that want to makes Tri-City a good near-shoring location to serve those markets. acquire new competences in that particular field. The dynamic growth of passenger traffic illustrates the increasing role of Gdańsk airport. The passenger flow in 2012 exceeded 3 The Gdańsk Scholarship Scheme is a unique mechanism, available million. only for investors who wish to locate foreign operations in Gdańsk. It provides financial assistance for training personnel of newly The region witnessed a construction boom in road transport established businesses, either in Poland or abroad. The grants it infrastructure resulting from the preparations for Gdańsk to co-host gives cover the costs of training, accommodation, travel and living the Euro 2012 European football championships. Thanks to those expenses for a period of six months and amount to up to PLN preparations, the Tri-City gained a motorway connection with central 30,000 per person. Poland and the ring-road system was expanded, which reduced traffic in the downtown. In addition, links between the airport and the city centre were improved. Invest in Pomerania is a regional initiative that provides free-of- charge services to foreign investors interested in carrying out From a social and cultural point of view, the metropolitan area of the projects in Pomerania. It was created by the Marshal’s Office of Tri-City offers many advantages: high quality education, good Pomorskie Voivodeship, the cities of Gdańsk, Gdynia, Słupsk medical care, efficient public transport and a good quality of life. and Sopot, Pomeranian and Słupsk Special Economic Zones, InvestGDA and Pomerania Development Agency, which coordinates the actions of the initiative. This has been reflected in Gdynia and Gdańsk occupying leading places in ‘the most friendly cities to live in’ survey published by On Point • Tri-City Office Market Report • October 2013 5 Labour market Poland is one of the leaders in the world BPO/SSC market. Other languages include French (with 225 students) and Slavic According to Everest Group, an international consulting company, languages (with 176 students). Poland is one of five mature locations for outsourcing worldwide. According to data from Hays Poland, 90% of employees in the The sector is maintaining constant rapid growth, making it one of Pomorskie region say they have knowledge of English, more than Poland’s fastest growing industries. 30% German, and more than 20% Russian. Additionally, 6% of the residents speak French, and 5.6% Spanish. Those results confirm Due to the intellectual potential of the region, most notably a talent the high level of language knowledge in the Pomorskie region. pool that possesses knowledge of foreign languages, it is expected to develop even further in the near future. The competitive advantages of the region, including the availability of highly qualified employees with knowledge of foreign languages, The growth of the knowledge-based economy is very much have attracted many world-class employers, such as Bayer, OIE dependent upon a constant inflow of graduates to the labour market, Support, WNS, Sony Pictures and Metsä Group. The large pool of especially finance, language and IT graduates, as those are the experienced candidates with a working knowledge
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