By MOTIFE Insights, 13 November 2023
This guide will show you the most sought-after office locations in Krakow and give you a list of things to think about when picking the perfect spot. Read further to find out the benefits of having a brick and mortar office and what are employees' preferences in terms of office spaces.
Krakow is a rapidly growing city with a rich history that has transformed into a bustling modern metropolis. The city has become a hot spot for talented professionals worldwide, which makes it an attractive location for businesses. Companies often choose to open an office in Krakow because of its access to a diverse pool of talent, physical presence in a specific market, and the opportunity to establish stronger relationships with clients or customers.
When opening an office in a vibrant city like Krakow, several factors come into play. These include accessibility, facilities, building standards, and employee needs. All of these factors contribute to creating a successful office environment. Choosing an office space with the right location and facilities can enhance a company's brand image, attract top talent, and improve its reputation in the area. Price is also an important consideration when selecting the perfect office space.
Here are a few reasons why Krakow is a desirable location for IT companies looking to open a new office:
Skilled IT talent pool: Krakow's IT industry is growing fast. It's home to over 500 tech businesses like HSBC, Euroclear, UBS, and Motorola Solutions. With 55,000 IT experts, this field is getting bigger and stronger. Every year, around 40 new IT companies join the market, and the number of skilled workers increases by 10%.
Diverse market access: Krakow's location in the heart of Europe gives companies easy access to major business centers across the continent. This makes it an excellent location for businesses looking to expand their presence in the European market.
Cost-effective: The cost of living and doing business in Krakow is lower compared to other European cities. This translates to lower office rental costs, making it a cost-effective destination for businesses looking to expand their operations without incurring massive costs.
Check out also: Krakow IT Market Report 2024
Krakow's office market has been growing rapidly in recent years. According to Cushman & Wakefield, in 2017 Krakow became the first regional market in Poland with modern office space exceeding 1 million square meters. By 2022, this number had increased to 1.7 million square meters. The supply of office space is diverse, ranging from large complexes accommodating over 2,000 people to smaller buildings with a unique vibe and a more private atmosphere.
The lease costs for A-class and B-class spaces in Krakow have remained stable over the last three years, with the usual lease period for an A-class office space being five years. The costs range between 13.5-16.5€ per 1 m2 per month, while a B-class office space costs around 10-13€ per 1 m2 per month. It is also possible to find shorter offers, such as office subleases, which can be a flexible form of office space rental. The typical duration of a sublease is 12 to 18 months.
Subleasing can be beneficial for both the original lessee and sublessee, as it allows the lessee to lease out part of the occupied office space, reducing fixed operating costs, while the sublessee can rent space for a shorter lease period, potentially at a lower cost than under a traditional lease agreement with the building owner. However, it's worth noting that a sublease is not always a good alternative to a standard lease, as the lease agreement may limit the office space customization and branding or may not be suitable for companies working with sensitive data.
A rise in co-working spaces and serviced offices, accommodating the growth of start-ups and high-tech companies has been also seen in Krakow. These flexible office solutions offer shared and fully equipped spaces, with administrative and maintenance services, allowing for a flexible rental period and privacy from other companies. There is currently 56,000 square meters of flexible office space available in Krakow, with a monthly rental cost of around 350€ per desk in a serviced office.
Check out also: Office search and setup services from MOTIFE
The COVID-19 pandemic forced businesses worldwide to adapt to new ways of operating. The new normal of working from home has now become the norm, and it's hard to imagine working solely on-site, especially in corporate environments. Remote work has several advantages, but bringing employees back to the office provides other benefits.
Companies aim to build a specific company culture that integrates people and attracts workers from different backgrounds with similar values. Being present at the office helps to build stronger relationships between colleagues, improve communication, and eliminate conflicts that may arise from limited, online verbal communication. Direct contact among team members who get a chance to meet in person leads to more successful problem-solving and supports creative thinking.
Another essential factor is supporting employees in maintaining a work-life balance. The vast majority of people open to working in a hybrid mode tend to say that the office provides a clear place of work that employees can physically leave at the end of each day. Being able to mentally switch off from work helps to reduce stress.
Considering all these factors, many businesses now opt for partially office-based workers when entering new markets. There are several reasons why companies make this decision. Among them are the need for a physical presence in a specific market, access to talent in a particular area, and the desire to establish a stronger relationship with clients or customers. When considering opening a new office in Krakow, one of the first questions that businesses need to answer is, "What do we need from our office, and where should it be located?" This question raises several concerns, and stakeholders often seek answers to them.
Meeting the requirements of potential employees can significantly improve talent attraction and enhance the company's employer brand in the region. The office location and facilities are among the factors that contribute to building a favorable brand image. In addition to basic amenities like desks, comfortable chairs, meeting rooms, phone booths, decorations, and the all-important coffee machine in the kitchen, the building's topography and design must also be considered.
Accessibility via public transportation is one crucial factor to consider. As parking is often limited in central areas, businesses should consider targeting office centers that are in proximity to a well-developed tram and bus network in Krakow. Furthermore, Krakow is a bike-friendly city, so having dedicated bike parking areas can be an added incentive for environmentally conscious employees. Many employees use their cars to drive to the office, especially if they are required to be in the office only once or twice a week. But with traffic congestion at peak times, even car drivers will appreciate the thought of having a public transport commute available.
The building's standard is another important consideration, including its modern design, spaciousness, access to natural light, and safety of the neighborhood. While numerous modern office hubs have emerged in Krakow in recent years, some investors have chosen to renovate historic buildings in the city's old town and adapt them to contemporary designs. This option can be particularly attractive to smaller companies that value premium locations and proximity to the historic center.
Price per square meter is also an important factor when selecting the ideal office space. The average monthly lease rate in Krakow ranges between 13.50 and 15.50€ per square meter, although premium locations may command higher prices. In addition to the base cost per square meter, potential lessees should factor in building administration fees and utility expenses. Generally, the standard office layout allocates 10 square meters per employee, with kitchen and social areas integral parts of the overall workspace.
The location of your office plays an important role in a prospective employee's decision to join your company. They will likely use Google Maps to assess your location, envisioning their daily commute and routine, such as the duration of the school run for their children, the distance from their yoga class, or the feasibility of biking to work. Here are some anticipations your potential hires might hold:
Location and accessibility
Location and transportation are key factors to consider when opening an office in Krakow. While the equal distance between the various districts of Krakow and the premium image of an office located in the historic medieval center of Old Town may be appealing, limited and expensive parking space can be a potential issue. In narrow streets congested with cars during peak hours, finding a parking spot can be challenging. In this case, the well-developed public transportation grid is the best option, with monthly subscriptions starting from 80 PLN. Employees value easy access to tramways and buses, and offices located close to major arteries of the city with numerous bus lines departing every few minutes are highly desired. If you pick a more remote location, make sure there are widely available parking options.
A friendly working environment
With remote recruitment processes becoming a norm, many new joiners discover the company’s office only on their first day, hence first impressions of your work environment will matter a lot. When it comes to office space, easy access, and modern interior design are appreciated by employees. While some prefer modern, open spaces with rooms featuring large windows that allow natural light to enter, others choose small, cozy rooms in charming old townhouses. However, what links everyone is a working environment that encourages people to visit the office and creates a friendly atmosphere that supports creative thinking, allows for stress relief, and provides opportunities for teams to integrate during working hours. Facilities such as restaurants, canteens, and food trucks that regularly visit various office centers are highly valued by employees, as they provide opportunities for teams to take lunch breaks together, promote team integration, and provide a chance to relax between tasks.
Additional points for popular districts and extra perks
Real estate investors seeking to attract businesses with strategic locations in Krakow's most popular districts, including Old Town, Podgórze, Dębniki, and Grzegórzki, offer building complexes that blend perfectly into the urban fabric with their modern yet tailored outer designs. Some investments come with access to courtyards where employees can enjoy outdoor dining, play table tennis or chess during breaks, and have special zones for "street workouts." Other incentives include charging stations for bicycles and electric scooters, stations for electric cars, bicycle racks, and locker rooms and showers for cyclists.
High5ive is a complex of five office buildings with approximately 70,000 square meters of modern office space in the heart of Krakow. The office complex is being built right next to the Main Railway Station, and the Galeria Krakowska shopping center. The building complex at 23 Pawia Street in Krakow is also distinguished by its modernist architecture and attractive location - it takes only 10 minutes to walk from the building to the city center! The High Five project provides the market with office space in the very center of Krakow.
Located close to two of the most important transportation hubs in Krakow - Mogilskie Roundabout and Grzegórzeckie Roundabout, this area offers easy access to the city's main attractions. Within a 10-minute commute, you can reach the city center, the Main Railway Station, or the Main Market Square. The complex also provides access to a modern conference area with a ballroom, a fitness center, a swimming pool, and a spa will be created within these buildings. One of the spaces will also have its own brewery, producing beer on-site.
An office investment in progress that will offer over 43,000 square meters of modern workspace. The Brain Park complex consists of three ten-story buildings with an underground garage. The investment area will have 485 parking spaces, stations for charging bicycles and electric scooters, charging stations for electric cars, bike racks, and locker rooms and showers for cyclists. An undeniable advantage of the project will be the courtyard, where places to rest, eat outdoors, play table tennis, chess, or a "street workout" activity area are planned.
MK 29 is a modern office building located in a prestigious area with business, cultural, and historical value. It offers 7 floors and about 11,200 square meters of total space, including flexible open space options and underground parking. Its location near the city center provides easy access to public transportation and major landmarks, including the Wawel Castle. The building features high-quality finishes, eco-friendly solutions, and natural lighting for a comfortable working environment.
UNITY CENTRE is a modern complex located in the heart of Krakow, with a total area of 50,000 square meters. It consists of a 27-story office tower of the "AA" class, two lower office buildings, a four-star hotel, and a luxury apartment building. The complex is located in close proximity to the Main Square (2km) and it provides easy access to a peaceful oasis in the midst of busy cities like cozy restaurants and botanical gardens.
Situated on 3 Maja Avenue, one of Krakow’s main routes, Park Club is a contemporary multi-purpose building that provides approximately 6,100 square meters of office area distributed over four levels. It features around 170 subterranean parking spaces. The offices are outfitted with all the standard technical facilities and conveniences of buildings in this category. The location is easily accessible by public transport and is a short walk from Krakow's Main Square. Although centrally located, it's also next to Blonia, one of the greatest meadows located in a city, and Jordan Park, both being ones of Krakow's greenest areas.
Kazimierz Office Center, with its 15,000 square meters space, ensures a comfortable work environment with high-quality finishes, functionality, glasswork, and ample daylight. This prestigious spot is near the Vistula River boulevards, the Main Market Square, and the Wawel Royal Castle. Being in the city center, it allows easy access to Krakow's retail, dining, cultural, and hotel services. Efficient city-wide transit is facilitated by nearby public and private transport options, with numerous bus and tram routes, and well-connected roads.
Opting for an office space in one of Krakow's historic tenement buildings offers a unique opportunity to immerse in the city's distinctive allure. These buildings typically feature high ceilings, and occasionally terraces that provide breathtaking views of the old town. Moreover, the location boasts excellent connectivity with bus and tram routes that link to other districts, the central railway station, and the Krakow airport.
However, these characterful buildings might come with certain drawbacks. They might not provide all the modern conveniences one would expect from newer office structures, such as elevators or optimal lighting. Nevertheless, both emerging and established companies, including giants like Google, find value in situating their operations within these charming old town tenements.
Check out also: Office search and setup services from MOTFE
Learn more about the tech ecosystem in Krakow and Poland by downloading the Krakow IT Market Report 2024.
If you are interested in office search and setup services, contact us at MOTIFE to learn more.
If you are looking for interesting job opportunities in tech companies in Krakow and remote, check out open roles at motife.com/jobs.
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