300,000 sqm office space leased in Q1, 1.4 mln sqm under construction

As many as 300,000 sqm of office space were leased in Poland in the first quarter of 2015, according to a report by advisory company JLL. “We have witnessed a very good beginning to the year on Poland’s office market. Sound demand – a total of 300,000 sq m - registered in Warsaw and regional cities in Q1 illustrates the positive market sentiment in terms of occupier activity. Total new office supply across the country delivered in Q1 totalled 149,500 sqm, out of which 59,000 sq m was completed in Warsaw and 40,600 in Poznań. Developers are very active as 1.4 million sqm is under construction with various delivery times. Warsaw contributes more than half of this total," said Anna Młyniec, Head of Office Agency and Tenant Representation at JLL. The most notable leasing transactions in Q1 were PZU’s new deal (17,500 sq m in Konstruktorska Business Center), HP’s renewal (10,400 sq m in University Business Center II), and P4’s renewal and expansion (10,200 sq m in Marynarska Business Park). Warsaw modern office stock grew by 59,000 sq m in eight projects delivered in Q1 2015. Development activity remains significant, with more than 700,000 sq m under construction and 56,000 sq m being refurbished in the capital. In total, the Warsaw market can grow by almost 360,000 sq m in 2015, however some projects may be put back to the beginning of 2016.