Mokotów is the office hotspot

The office market in Warsaw experienced a total take-up of over 412,000 sqm in 2006, making it another record year for activity in the market. While renewals of existing leases accounted for 64,600 sqm (16 percent) of this figure, a relatively large share of activity came from expansions, with tenants accepting an extra 46,700 sqm (11 percent of total take-up) from current landlords. The report also records that the office market was loosest in the city-center core during 2006, where vacant space totaled at 9.5 percent.

A total of 21 buildings were completed during 2006 and the Forum's report highlights this as bringing a total of 186,700 sqm of new office space onto the market. Although the largest project, Rondo1 (55,000 sqm), was located in the city-center, the report highlights that most completed office projects were in other zones, such as Prosta Office Center (18,600 sqm) in the city's fringe and Trinity Park I (18,100 sqm) in Mokotów.

Steven Hitchen of Colliers International estimates that during the next four quarters, at least 200,000 sqm of office space will be on offer in the southern district of Mokotów, with that figure rising to around 300,000 sqm, if developers acquire the necessary permission from financial backers and local authorities.

Experts have indicated some skepticism towards whether or not this space will be absorbed by the market. The estimated vacancy rate in the urban south district in 2008 is expected to amount to 15-18 percent, assuming development goes ahead as scheduled. Taking potential disruption into account, this figure may slide to 11-14 percent, according to Colliers International.