ARTICLES LABELLED WITH TAG BSC

In the first half of 2021, tenants leased over 1.1 million sqm of modern office space across the capitals of the 15 CEE countries. The highest level of activity was recorded in Warsaw (249,300 sqm), followed by Prague and Budapest. The Business Services Sector continues to generate a great deal of demand and occupier activity and is one of the largest employment sectors in the region according to the “ExCEEding Borders - Office Markets & Business Services in CEE-15” report just released by Colliers.

The condition of the Kraków office sector has been defined by successive records in recent years. It is the largest regional office market in Poland, the second city after Warsaw, which in 2017 crossed the one million sqm threshold, and the main location for BPO/SSC companies in Central and Eastern Europe. However, the global pandemic, which affected all segments of the economy, undoubtedly also affected the office sector. How? According to JLL’s latest report, in the first half of the year, demand for offices in Kraków was about 15% lower than H1 2019. In addition, the increase in remote working has prompted some employers to reorganize their offices.

The implementation of the office projects under construction is in full swing in Kraków. The construction of new buildings will depend, however, on the demand for offices from the business services sector, which is its main recipient on the Kraków market, according to consultancy company Walter Herz.

Bucharest and the major university centres in Romania, such as Cluj-Napoca, Timişoara, Iaşi, Braşov or Craiova, are well-positioned to attract new business in the services sector, despite the Covid-19 pandemic that slowed down the transactional activity and led companies to work from home, according to Cushman & Wakefield Echinox.

Business services centres occupy more than 2.5 million sqm on the Polish office market according to new estimates by JLL. Traditionally, the business services sector has the highest percentage of occupied office space in Kraków (61%).

Balmain Asset Management Group has assumed 100% control of BSC Real Estate Advisors and BSC Property Management. The company has purchased a minority stake in the BSC companies and now holds 100% of the Group shares.

IT and business service centres were the most active tenants on the Prague office market last year, having signed lease contracts for 84,000 sqm and reaching 31 % of net take-up. In 2015 the largest leasing transaction represented by an agent (JLL) was concluded in the history of Prague´s office market – SAP leased nearly 25,000 sqm in Metronom office building in Prague 5. SAP will move its 2,000 employees working for three operations under one roof.