JLL summarizes Warsaw's office market in H1

Demand for offices in Warsaw continues apace as lease agreements for 360,100 sqm were signed in H1 2016, 26 percent more than in the whole 2015. For the first time two office skyscrapers, namely Warsaw Spire A and Q22, were delivered to the market in one year, real estate consultancy JLL said in a report.

"After an outstanding 2015, the Warsaw office market held firm with 360,100 sqm of lease agreements signed in H1 2016. Office space located in the wider city center proved to be most popular with tenants, followed by the Mokotów district," Anna Młyniec, Head of Office Agency and Tenant Representation, JLL commented. Of the 360,100 sqm leased in total in H1 2016, Q2 accounted for 217,800 sqm of space. In the city center, 122,200 sqm of space (one third of the total office demand in Warsaw at the time) has been leased since the beginning of 2016, while in the Mokotów district - 80,800 sqm. Almost 156,700 sqm of the office space leased in H1 was for new deals in existing buildings, with a further 62,000 sqm constituting pre-lets. Expansions accounted for almost 31,600 sqm while renewals totaled 109,800 sqm. This positive trend in demand for office space is likely to continue through H2 2016 and 2017. The largest H1 openings included the aforementioned Warsaw Spire A (59,100 sqm) and Q22 (46,400 sqm), as well as Gdański Business Center D (29,300 sqm), and Proximo I (28,700 sqm). Some 237,000 sqm of space was delivered to market in Q2 alone. In H2 2016, the Warsaw office market stock will hit the 5 million sqm mark