Almost 300,000 m[sup]2[/sup] of office space was leased in Warsaw during the first half of 2012, slightly less than in the corresponding period the year before, according to CBRE' latest 'Warsaw Office Market View.
Almost 300,000 m2 of office space was leased in Warsaw during the first half of 2012, slightly less than in the corresponding period the year before, according to CBRE' latest 'Warsaw Office Market View.
By the end of H1 2012 modern office stock reached almost 3.7 million m2, of which 33% is located in the City Centre. Recently completed projects are located mostly in the City Centre, Upper South and Lower South zones. The largest project of H1 2012 was the second phase of Poleczki Business Park (21,000 m2). Significant schemes delivered in Q2 2012 include Platinium Business Park V and Ufficio Primo.
'Due to the depreciation of the PLN against the EUR and the recovery in supply, tenants are being put under a greater rental pressure. Therefore, rents might increase only in the Central Business District, where the supply is relatively limited,' said Joanna Mroczek, head of consultancy & research, CBRE Poland.
In response to an upswing of demand, observed especially in pre-let transactions, the amount of modern office space under construction has increased. Currently, it amounts to 700,000 m2, which is some 20% of the existing stock. Over 50% of the constructed office space in Warsaw is generated by eight biggest schemes. The growing amount of office space under construction might exert a negative pressure on the average rental level and a further growth of vacancy rate in the long term, as 70% of office space in Warsaw is being constructed on the speculative basis.
In H12012, the largest deal was a pre-let transaction signed by PTC in T-Mobile Office Park (27,000 m2), followed by ING Group’s pre-let in Plac Unii (12,100 m2) and Axel Springer’s renegotiation (9,100 m2) in Trinity Park I.
The overall Warsaw office vacancy rate amounts to 7.4%.
