PINK publishes data on the office market in Warsaw in Q3 2021

PINK has published figures on the office market in Warsaw for the third quarter of 2021. The data is sourced from advisory companies from the commercial real estate sector (BNP Paribas Real Estate, CBRE, Colliers, Cresa, Cushman&Wakefield, JLL, Knight Frank, Savills) and includes information on modern office stock, new completions, take-up volumes, and vacancy rates.

At the end of the third quarter of 2021 total modern office stock in Warsaw accounted for over 6.15 million sqm. In the third quarter of 2021, approximately 67,600 sqm of modern office space was delivered to the capital city market in two projects, namely: Fabryka Norblina (buildings Galwan and Plater offering 39,000 sqm of modern office space to let) and Widok Towers (28,600 sqm). Both projects increased the modern office stock in central locations in Warsaw.

At the end of the third quarter of 2021, the vacancy rate in Warsaw reached 12.5 percent (in par with the value recorded in the previous quarter and increase by 2.9 pp. concerning the comparable period in 2020). Availability of office space equaled 767,800 sqm. In central zones, the vacancy rate was 13.2 percent, while outside the city center it reached 11.9 percent. The demand for modern office space reached 398,100 sqm, with 149,300 sqm signed in the third quarter of 2021. The most popular areas of tenants’ interest during the last quarter were the City Center zone, followed by Central Business District and Mokotów office zones.

Between July and September 2021, the highest share in total take-up volume was attributed to new deals – 53.5 percent (including pre-lets transactions). Renewals of current lease agreements attributed to 42.0 percent while expansions equaled to 4.5 percent.

The largest transactions of the third quarter of 2021 were three renegotiations, signed by: confidential tenant from the banking sector (over 13,900 sqm) in Atrium Garden, the confidential tenant from the banking sector (5,700 sqm) in Wiśniowy Business Park E, Nationale Nederlanden Usługi Finansowe (almost 5,100 sq ) in Hortus office building and prelease of CMS for 7,000 sqm in Varso Tower.

(WBJ)