Office market with signs of changing trends: report

In the first half of this year, more office space was leased in the Tri-City and Poznan than in the same period in previous years

“Kraków market, apart from Warsaw, was the most popular location among tenants, with contracts for 74,000 sqm of offices. The Tri-City also had a good 6 months, where 72,000 sqm of space was contracted. It is almost twice as much as in the same period in the last four years. Overall, the regional markets closed the first half of the year with a result of 20 percent lower than last year, but the demand in Poznań, apart from the Tri-City also deserves attention. The transactions concluded in the capital of Greater Poland have resulted in a higher volume of the lease than recorded at the same time in the last two years,” Krzysztof Foks, Senior Analyst at Walter Herz, informed.

In the first half of this year, 510,000 sqm of office space was delivered to tenants. 250,000 sqm of offices was leased in Warsaw, one-third less than the average for the last 5 years. According to Walter Herz’s report, there was over 260,000 sqm of contracted office space on the main regional markets. 

In the first half of 2021 in Warsaw, we saw a significant increase in supply. According to Walter Herz data, the construction of 10 buildings has been completed, offering a total of 226,000 sqm of office space. As a result, the capital's office stock increased to 6.1 million sqm.

Implementation of three tower projects has been completed – Warsaw Unit, Skyliner, and Generation Park Y, located in the vicinity of Daszyńskiego roundabout. High-rise buildings blend in with the more and more impressive skyline of the central part of Warsaw. Among the completed office buildings there are also Moje Miejsce II, Forest podium, X20, Centrum Praskie Koneser M i N, EQ2 and Baletowa Business Park.

As much as 360,000 sqm of office space is under construction in Warsaw, of which nearly a third is to enter the market this year. 

(WBJ)