12:52 14 September 2024
Polish Office Market Is Beginning to Polarize
The Polish office market shows signs of polarization, with a notable contrast between Warsaw and regional markets.
"Warsaw's office market has seen significantly more activity than regional markets, both in demand and new investments," Mateusz Strzelecki, Partner/Head of Tenant Representation at Walter Herz, highlighted.
Demand for office space remains robust in Warsaw, with increasing absorption levels ranking the city among Europe’s top office markets. Meanwhile, regional markets are facing higher vacancy rates, with the demand for office space declining over the past year. Despite office rents in regional cities being almost half those in Warsaw, vacancy rates in regions are nearly twice as high.
The market also reveals that companies are optimizing their workspace, seeking high-standard offices in central locations. This trend further deepens the divide between central city office availability and suburban locations. Leasing renegotiations are becoming more frequent, particularly in Warsaw, where companies prefer to avoid relocation costs by renewing contracts.
(WBJ)
