Office take-up 12% higher y/y in CEE markets

Leasing volumes in 2014 have totaled 1.17 million sqm in the four CEE capitals (Warsaw, Prague, Budapest and Bratislava), recording a 12 percent increase compared to the corresponding period of last year and is expected to come in at 1.46 million sqm for the entire 2014, according to Cushman & Wakefield. Newly completed supply in the region has amounted to 410,000 sqm so far this year and is expected to increase by another 170,000 sqm by the end of 2014. This means a 33 percent increase compared to 2013, when the total new stock delivered to the market equated to 436,000 sqm. Warsaw has seem the highest new stock completed this year (253,000 sqm), followed by Prague (75,000 sqm). Budapest and Bratislava have recorded 49,000 sqm and 32,000 sqm of new office space delivered in 2014. Currently 1.1 million sqm of office space is under construction across the four main CEE markets, 700,000 sqm of which is slated for completion in 2015. The Polish capital has the lowest vacancy rate from among the four markets, at 13.8 percent, slightly below the rates in Prague (14 percent) and Bratislava (14.5 percent). Budapest has the highest vacancy rate (16.9 percent), but it is decreasing, unlike in Warsaw and Bratislava, which have been recording an slight increase in the amount of vacant areas. The total office stock in the four markets stands at nearly 12 million sqm, with Warsaw in first position (4.3 million sqm), followed by Budapest (3.2 million sqm), Prague (3 million sqm) and with Bratislava in fourth place (1.5 million sqm).