Boutique offices growing in popularity in Warsaw

There are currently some 73 boutique offices in Warsaw, according to the report by BNP Paribas, which “has analyzed existing and planned provision of historical and/or fully or partially refurbished or rebuilt buildings within sections of Warsaw’s city center and the Old Town area, varying in terms of size (max. 15,000 sqm), age and technical specification.” The report reveals that the total lettable area of office boutiques in Warsaw amounts to 310,700 sqm and the number of tenants reached 525. Prime headline rent ranges from €23 to €26 sqm/m, while the yield for prime assets ranges between 6.0 percent and 6.25 percent. The average vacancy rate stands at 12.4 percent. The boutique office market has perspective. “Having gained with experience in Germany, boutique offices should work in Warsaw, too. Still, the market remains relatively immature,” said Robert Mandżunowski, CEO of developer LHI. Experts, however, agree that boutique offices are assets for a patient investor. “You have to be patient, when trying to lease boutique offices, but it is generally worth it. Sure, costs of refurbishment and fit-out of a boutique office exceed the regular budget, however when considering the achievable rents and loyalty of occupiers, it is a sound investment,” Rafał Krzemień, board member of PHN, was quoted in the report.