Poland's office market continues to be buoyant - JLL

Demand for office space continues to be strong as companies leased 628,200 sqm in H1 2016. Currently, there is approx. 1.44 million sqm under development with Kraków claiming a record-breaking share for the city of 303,000 sqm. A further 545,000 sqm is under construction in Warsaw, real estate consultancy JLL summarized H1 on the office market in its new report.

Warsaw accounted for the largest share with 360,100 sqm of leased space followed by Kraków – 110,100 sqm, and Wrocław – 52,500 sqm. A total of 569,600 sqm of modern office space was delivered to market in H1 in Warsaw and Poland's other major markets. Warsaw accounted for 350,100 sqm, while 219,500 was delivered to other major markets. Outside Warsaw, the highest amount of new space was completed in Kraków (nearly 66,500 sqm) and the Tri-City (52,700 sqm).  "1.44 million sqm of modern office space is under construction in Poland as of the end of H1 2016. Warsaw accounted for 545,000 sqm. High developer activity was registered in Kraków with up to 303,000 sqm of office space remaining under development, followed by Wrocław - 181,400 sqm, Tri-City -132,100 sqm and Łódź – 109,600 sqm,” stated Mateusz Polkowski. As of the end of H1 2016, the vacancy rate in Warsaw was 15.4 percent. Outside Warsaw, the lowest vacancy rate was registered in Kraków (6.0 percent) while the highest was in Szczecin (17.7 percent). Prime headline rents in Warsaw City Centre are between €21 and €23.5/sqm/month. Non-Central locations lease at €11 to €18/sqm/month.