70% of new office stock scheduled for 2015 remaines vacant - JLL

Over 70 percent of the 733,000 sqm of office space that is scheduled for delivery in 2015 still has no tenant, according to data compiled by advisory JLL, daily Puls Biznesu wrote. In 2014, some 640,000 sqm of office space was added to the market. The largest amount of new supply will be delivered in Warsaw – 240,000 sqm. “The owners of modern and conveniently located office schemes who are flexible when dealing with tenants, have nothing to fear. With decreasing rent rates they will find it relatively easy to attract tenants from older and more expensive buildings,” said Mateusz Polkowski, director at JLL. Regional office markets are driven by the BPO industry, which leased some 200,000 sqm of office space in regional cities over the first three quarters of 2014, which is a comparable amount to what was leased throughout the entire 2013. “Developers responded to large demand with large supply, larger than the market can absorb. That’s why vacancy rates are climbing and a rent pressure is possible,” Polkowski added.