In 2023-2024, there may be no offices in Warsaw

Tenants in Warsaw revived at the end of 2021. Over 250,000 sqm of the office space was leased in the last quarter, i.e. by 69 percent more than a quarter earlier. Total demand in 2021 amounted to 646,500 sqm, which means an increase of 6 percent y/y, according to the CBRE report. Experts indicate that despite growing demand, developer activity has decreased over the past two years. As a consequence, in the years 2023-2024, we will face a supply gap. This is already putting pressure on increasing rental rates.

"The Warsaw office market saw a marked increase in tenant interest over the last year, which translated into lease agreements concluded at the end of the year. The desire to raise the standard of offices and the development of companies began to fuel demand for office space, especially in the city center. Nevertheless, it is still too early to say to what extent the hybrid work will have an impact on demand in the long term, although it is almost certain. Despite this uncertainty, demand is rising, which is a positive signal for the market," Mikołaj Sznajder, director of CBRE's office space department, said.

(WBJ)