In 2019, we could observe further intense development of the office market in Poland. The most dynamic development of the office real estate segment is visible in Warsaw, which has outperformed regional markets in terms of demand. Walter Herz analysts predict that this year will close with the best-ever result in terms of the amount of space leased on the capital market. This year, we have already seen record lease transactions in Warsaw. mBank has leased 45,600 sqm of office space in Mennica Legacy Tower, whereas Orange Polska renewed its lease of nearly 45,000 sqm of offices in Miasteczko Orange.
Clear changes in all of the largest office centers in Poland can also be seen in the demand structure, where the share of pre-let contracts is increasing. In regional cities, pre-let already covers a third of the leased space. In Warsaw, most offices under construction are already secured by contracts.
Bartłomiej Zagrodnik, Managing Partner at Walter Herz notes that today we are dealing with very high tenant activity on the office market, from both private and public sectors.
"The constant demand for offices, not only in large cities but also in smaller urban centers, in turn, encourages developers to act, rapidly launching other, often spectacular projects. In addition, they are also motivated to initiate new investments by large interest in commercial real estate from various capital markets, including those that so far have been less active in Poland," Bartłomiej Zagrodnik informed.