Over the year, since the Covid-19 pandemic arrived in Poland, the Warsaw office market has seen a marked decrease in occupier demand and office stock under construction amid rising vacancy rates. Although the past 12 months have been challenging for the office sector, companies are no less keen to have an office of their own, says real estate advisory firm Savills.
With more than 167,000 sqm of new office space coming on stream in the first quarter of 2021, Warsaw’s total office stock surpassed the 6 million sqm mark. According to Savills’ data, the office development pipeline stands at 407,000 sq m, the lowest figure in 10 years. More than 180,000 sqm is expected to be delivered by the end of this year, mostly in projects that broke ground in the pre-pandemic environment.
“An analysis of the past 12 months provides some insight into the impact of Covid-19 on the office market. The rate of vaccination and the risk of further waves of infections are, however, causing a great deal of uncertainty of what lies ahead. The pandemic certainly continues to shape the office market. Some companies are withholding their decisions regarding office leases or exploring opportunities for savings and more flexibility. At the same time, there is growing confidence in the office. Despite a high level of remote work, companies are unlikely to give up the idea of having a physical office altogether,” Daniel Czarnecki, Head of Landlord Representation, Office Agency, Savills, said.