New Work, a Hungary-based serviced offices provider, continues its expansion in Poland by making moves to regional city markets. Supported by real estate advisory firm Savills, the company will open two new locations: in Łódź and in Krakow.
One of New Work’s two new locations will be building H in Bonarka for Business (B4B), one of the most popular office complexes in Krakow located just right at Bonarka City Center shopping mall. Building H, the 8th element of B4B, has just been officially handed over, extending the office complex to over 75,000 sq m of modern office space. With Bonarka City Center nearby, the amenities, which B4B can offer includes 250 shops, cafes, restaurants, services, cinema and also medical clinic, private children’s day care, and fitness club in house. New Work will occupy almost 2,800 sq m.
New Work’s another location will be Hi Piotrkowska 155 in Łódź. New Work will occupy four floors in the tower building as well as a conference and meeting centre on the ground floor, totalling nearly 5,000 sq m. The tower constructed as part of the project will be the tallest office building in Łódź. The entire development, which will comprise two office and service buildings, and a Hampton by Hilton hotel is planned to be delivered by Q2 2020. The developer and investor of the project is the Master Management Group.
New Work provides fully furnished and equipped offices for corporates and small and medium-sized enterprises looking for modern workspaces on flexible lease terms. Its serviced offices in Poland are currently available in Warsaw at Wilanów Office Park (3,200 sq m), Neopark (2,500 sq m) and Kaleńska 5 Business Center (1,600 sq m). New Work will soon open a 4,000 sq m office at Warsaw’s Wola Retro building, which is nearing completion. Its only location outside the capital so far is Imagine in Łódź (2,000 sq m). It is scheduled for opening this autumn. The serviced offices provider is planning to continue to grow both in Warsaw and in regional cities.
“We are the only flex space provider born and raised in Central Europe which is covering all major CE markets. Over the last five years New Work was growing by 100% year by year and we intend to keep this pace. In Poland we are consistently adding new offices to our network to be able to offer prime locations in all relevant cities to our clients, and are now opening our second office in Łódź. Despite being a newcomer to Krakow’s market, we are already in the process of choosing another location there. By the end of this year we want to provide a total of 50,000 sq m of office space. The portfolio consists of 25 locations in five countries and seven cities in the CE region, and we are aiming the 100,000 sq m to be reported soon,” says Hubert Abt, CEO, New Work.
In order to finance this growth New Work converted last year to a company on shares and established its equity on EUR 3 million. “We just closed funding the Series A shares and started Series B now. With this we should be able to increase our equity stock to almost EUR 10 million by end of Q3 2019,” ads Hubert Abt.
Savills advised New Work on both transactions. In addition, the firm recently represented the tenant in lease negotiations outside Poland, including in office space leases at Dynamica (3,000 sq m) and Rustonka (1,700 sq m) in Prague, advised by the Czech Republic team and at AFI Tech Park (2,800 sqm) in Bucharest, advised by Crosspoint, Savills associate in Romania.
“The rapid growth in serviced offices and coworking spaces has so far centred on Warsaw. However, today it is the regional cities that boast the strongest growth potential. At the end of the first quarter of 2019, Krakow’s office buildings offered 17,700 sq m of flexible office space, nearly seven times less than Warsaw’s stock, while Łódź had just 1,800 sq m. Looking ahead, this will change - thanks to New Work. The provider has chosen high quality office buildings in prime locations in both cities which will certainly become sought-after destinations,” says Jarosław Pilch, Head of Tenant Representation, Office Agency, Savills in Poland.