PINK has published figures on the office market in Warsaw for Q4 2020. The data is sourced from advisory companies from the commercial real estate sector (BNP Paribas Real Estate, CBRE, Colliers International, 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 Q4 2020 total modern office stock in Warsaw accounted for 5,912,500 sqm.

In Q4 2020, approximately 75,800 sqm of modern office space was delivered to the capital city market in three projects. The largest one was Mennica Legacy Tower offering totally 47,900 sqm. In addition, 22,100 sqm of office space was delivered to the market in the Lixa A project and nearly 5,800 sqm in the Lixa B project. All projects delivered in Q4 2020 are located in the City Centre West zone.

At the end of Q4 2020, the vacancy rate in Warsaw reached 9.9 percent (up to 0.3 pp. compared to the previous quarter and increased by 2.1 pp. in relation to the comparable period in 2019). Availability of office space equalled approximately 583,500 sqm. In central zones the vacancy rate was 8.5 percent, while outside the city centre it reached 10.8 percent.

Throughout 2020, gross demand for modern office space reached 602,000 sqm, with particularly high tenant activity observed in the second quarter of the year – over 194,200 sqm of rented office space. In Q4, the second highest tenant activity has been recorded, with over 160,400 sqm let and the most popular area of interest being invariably the City Centre zone, while Jerozolimskie Corridor ranked second, surpassing Mokotów, which usually occupies the second position.

Between October and December 2020, the highest share in total take-up volume was attributed to new deals (including pre-let transactions) – 44 percent and renewals – 43 percent, while expansions equalled 13 percent.

The largest transactions of the fourth quarter in 2020 were: renegotiation signed by confidential tenant in Gdański Business Center I A (over 12,400 sqm), pre-let of Leroy Merlin in Forest II (over 12,200 sqm) and confidential client expansion in The Warsaw HUB C (nearly 9,700 sqm).