There are currently 739k square meters of office space in Warsaw under development, according to the report published by Knight Frank consultancy. Only in H1, developers launched 8 projects with 151k sqm of space.
The biggest projects that are in the implementation stage include: Varso (HB Reavis), Warsaw Hub (Ghelamco), and Mennica Legacy Tower (Golub GetHouse and Mennica Polska).
“At the end of the first half of 2018, office resources in Warsaw exceeded 5.4 million sqm, moreover, 14 new office projects with a total area of 174,000 m2 were delivered to the capital market,” Agnieszka Ilińska from Knight Frank said.
According to the report, in the first six months of 2018, almost 425 sqm of office space was leased in Warsaw. This is the best first half-year in the history of the Warsaw office market. During that period, 65 percent of the lease transaction volumes were new contracts, 25 percent were renegotiated deals, while 10 percent were an expansion of the existing ones. The zones that are most popular among tenants include: Centrum, Central Business Area, and Służewiec.
Since the beginning of the year, the vacancy rate has remained relatively stable and at the end of June amounted to 11.1 percent, which gives approx. 600k m2 of space available for rent immediately. Despite the high volume of new supply recorded at the end of June, the vacancy rate in comparison to the previous quarter increased only by 0.3 percentage point. for the whole of Warsaw and 0.6 percentage points for central zones, Knight Frank added.