Polish office market set to grow by 900,000 sqm in 2016
19:19
As much as 218,000 sqm of new office space was delivered to market (113,000 sqm in Warsaw and 105,000 sqm in other locations) in Q1 2016. By the end of Q1 2016, total office stock in Poland reached approx. 8.3 million sqm, according to a report by consultancy JLL.
"In Poland, office lease agreements for a total of 250,400 sqm were signed in Q1 2016. Major office markets outside Warsaw accounted for 108,200 sqm. The highest take-up was recorded in Warsaw – 142,200 sqm, followed by Kraków with 39,400 sqm. We expect an increase in tenant activity in the upcoming months," Anna Młyniec, Head of Office Agency and Tenant Representation at JLL, commented.
The vacancy rate in Warsaw was 14.1 percent by the end of Q1 2016. Outside Warsaw, the lowest vacancy rate was registered in Kraków (5.7 percent) while the highest was recorded in Szczecin (18.3 percent). Prime headline rents in Warsaw’s city centre averaged out at between €21 and €23.5/sqm/month. Outside the city center, rents vary between €11 and €18/sqm/month. As for major office markets outside Warsaw, the lowest rents are recorded in Lublin (€11 – €12/sqm/month) while the highest can be found in Poznań and Wrocław (€14 – €14.5/sqm/month).
"Currently, there is approx. 1.5 million sqm of office space under construction throughout Poland. The largest developer activity is in Warsaw, where 662,000 sqm is under construction, followed by Kraków - 284,000 sqm, Wrocław - 170,000 sqm and Łódź - 106,000 sqm. According to our preliminary forecasts, the Polish office market is likely to grow by 900,000 sqm in 2016," said Mateusz Polkowski, Associate Director, Research and Consulting, JLL.
