CBRE upbeat on offices

Year-on-year compared with 2004, overall takeup for Warsaw office space increased by 15.8 percent. The net absorption for 2005 was at the level of 20 percent of the total take-up. The total vacancy rate for ready-to-occupy Warsaw office space continued to decrease from 11.8 percent at the end of 2004 to 8.16 percent at the end of 2005. Modern office stock in Warsaw is now 2.37 million sqm, with 40 percent located in the city center. A total of 28 buildings - 120,201 sqm - were delivered to the Warsaw office market in 2005. While office supply slowed in the majority of regional markets, reducing vacancy rates significantly, the regions proved most active on the retail side. Investors and developers have begun to target towns between 100,000 and 400,000 people. (WBJ Real Estate Newsletter)