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Łódź with the largest increase in office space despite the pandemic

Martyna Petrus
Martyna Petrus PR Specialist

According to the Business Environment Assessment Study, Łódź is included in the top five areas most advantageous for foreign investments. The capital expenditure incurred by the Łódź Special Economic Zone is PLN 15 billion. In addition, the total stock of office space is almost 580 thousand. m2 and this number is constantly growing.

The latest, 3rd edition of the Antal, Cushman & Wakefield and Vastint report - "Łódź's investment potential" as part of Business Environment Assessment Study presents the assessment of the business environment in Łódź by decision-makers of Polish companies. It allows you to look at the Polish market from the business perspective and indicate the main trends in the economic development of the organization. The study analyzed seven factors that influence the attractiveness of cities and encourage investment. These are: infrastructure, office space, public administration support, educational potential, employment potential, business potential and the assessment of location as a place to live.

Łódź emerges unscathed from the pandemic

The third edition of the survey shows that Łódź, despite the pandemic, lost little. The average mark is 6.6 points on a 10-point scale. This places the agglomeration in fourth place among other Polish cities surveyed. The highest scores were awarded to such aspects as office space (7.4 p), educational potential (7.0 p) and the assessment of location as a place to live (7.0 p).

Łódź is a city that has undergone significant changes in recent years. We identified the biggest problems and exposed our strengths. We have been communicating great investment plans for a long time, we emphasized the fact that the communication infrastructure and the quality of life in the city will be completely changed. Today we are entering the stage of finalizing these projects, at a time when their impact begins to be felt and has a real impact on the conditions of doing business in Łódź - says Adam Pustelnik, First Vice President of the City of Łódź.

Several key factors contribute to the favorable economic situation of Łódź. These include, first of all, the central location. The Łódź Agglomeration Railway is also extremely important for the development of the agglomeration. Additionally, on November 7, 2017, the government plan to build the Central Communication Port was adopted. It is to be a new airport located between Łódź and Warsaw, ultimately capable of handling 100 million passengers annually.

For years, Łódź has been accompanied by terms such as revitalization, transformation or strengthening its position on the map of Poland. The city consistently implements a policy aimed at improving the quality of life of its inhabitants and increasing their purchasing power. This aspect is directly related to the need to focus efforts on the inflow of new capital to the city and the development of the existing one, which is relatively young in our city - says Zuzanna Krech, Associate, Regional Head - Central Poland, Cushman & Wakefield.

Expanding office space

The Łódź office market is characterized by a large increase in office space compared to the previous edition of the survey. Its total supply is about 580 thousand. m2 at the end of 2020, and over 85,000 sq m is planned or under construction. m2. The last value seems to confirm the thesis about the city's incredible potential. In such a difficult time for the market, new investors are announcing the start of work on new buildings, and those who are already building are not slowing down. The reason may be one of the lowest vacancy rates in regional cities.

Łódź is now a modern business center. Thanks to the investments carried out by developers so far, Łódź has over 578,000 sq m of modern office space to offer tenants, and another 88,600 sq m will be completed by the end of 2022. In the last five years, the total stock of office space in Łódź has increased by over 60% , thanks to which Łódź currently ranks seventh among the largest office markets in Poland - comments Zuzanna Krech, Associate, Regional Head - Central Poland, Cushman & Wakefield.

Łódź offers office real estate and multi-functional projects. Recognizable buildings tempt tenants with a unique working environment, and typically business districts are positively received by residents. Developers gain a real influence on shaping the city. Examples of such an approach are the projects Monopolis (Virako), Textorial Park (St. Pauls Development) and Fuzja (Echo) - adds Radosław Kostka, Acquisition Manager Vastint Poland.

Growing educational potential

Nineteen universities, including the largest state university in the Lodzkie Voivodship, guarantee a wide range of competences. Łódź has a population of 75.7 thousand. students. Most of them specialize in finance (11.7 thousand), then in engineering (9.9 thousand) and then in IT (4.7 thousand). Human capital was estimated at 7.0 p on a ten-point scale. For the sake of cooperation with business, the "Młodzi w Łodzi" (Youth in Lodz) program was created, which supports the development of professional careers of students, encouraging young people to connect their future with the city.

The innovative program "Youth in Łódź" deserves attention. It is an online platform where employers meet, as well as students and graduates of Lodz universities interested in undergoing internships related to a specific industry or company department. Annually, about 20 thousand students obtain a diploma at Lodz universities. graduates. Certainly, the area of business services (SSC / BPO) is a sector with prospects for them. In this industry, one of the most important competences is the knowledge of a foreign language, so students and graduates of linguistics - German, English and Romance studies - can count on employment - says Aneta Jarzębska, Regional Manager, Antal SSC / BPO.

Development of the labor market in Łódź

The strengths of Łódź are administration and HR staff, as well as specialists and managers with sales competences. In addition, the capital of the Lodzkie Voivodship has been achieving better and better results in the ranking of city attractiveness in terms of relocation every year. For example, every fourth person employed in the SSC / BPO sector will consider moving to Łódź if they receive an interesting job offer. Antal's experts' forecasts assume that the city's attractiveness will continue to grow steadily along with the implementation of new structural and business investments.

Łódź, as the third largest city in Poland, attracts investors with its central location, rich academic background and developing communication infrastructure, ensuring easy access to all the largest business centers in Poland and Europe. The development of the Lodz Special Economic Zone brings many benefits in the form of numerous investments in priority sectors. Many employers already present in Łódź decide to further develop through reinvestments in the region, bearing in mind the very good access to middle and lower level staff with competences that are much more difficult to obtain locally in other regions - adds Artur Skiba, President of the Antal Management Board.

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About the study
The "Business Environment Assessment Study" survey was carried out using the CAWI method among the heads of 809 companies in Poland in the fourth quarter of 2020 A series of reports dedicated to major urban centers in Poland aims to describe the business reality in which companies operate. The material allows you to look at the Polish market from the business perspective and indicate the main trends in the economic development of enterprises. The report, prepared every year, contains information on the level of remuneration of specialists and managers on the Polish market. The full report is available at: www.investmentpotential.pl

About Antal
Antal is a leader in the recruitment of specialists and managers as well as HR consulting. The Antal brand has been present in Poland since 1996. Within the Antal Group there is a Polish company established in 1996 and a company opened in 2014 in the Czech Republic andEnloyd - in Hungary. In Poland, offices in Warsaw, Wrocław, Kraków, Poznań and Gdańsk carry out projects in Poland and abroad for the largest global and local enterprises from all sectors of the economy. As one of the first recruitment companies on the Polish market, we have introduced a matrix division of teams, thanks to which our consultants specialize in both sector and position recruitment. Currently, Antal has 10 recruitment divisions and teams advising companies in the field of employee evaluation and development, employer branding and market analyzes. In 2018, two innovative services were also launched: a platform for freelancers - REX and the Robot Employment Agency.

About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate advisory firm providing services to tenants and owners of commercial real estate. Cushman & Wakefield is one of the largest real estate advisory firms, employing approximately 50,000 people in 400 offices and 60 countries around the world. In 2020, its revenues amounted to $ 7.8 billion. The most important services provided by the company include property, facility and project management, brokerage in space leasing, handling transactions on capital markets, appraisals and more. For more information, visit www.cushmanwakefield.com or on Twitter: @CushWake

About Vastint
Vastint Poland is part of the Vastint Group, an international organization operating on the European real estate market for over 30 years. The pillars of the company's activity are real estate portfolio management and the development of office, residential and hotel projects that provide a comfortable and sustainable environment for living, working and relaxing.

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