PORF summarizes H1 on Warsaw office market

At the end of H1 2016, Warsaw’s modern office stock amounted to 4.98 mln sqm and 350,100 sqm was completed in 16 office buildings, of which almost 51 percent was delivered in Central locations, The Polish Office Research Forum said in a report.

At the end of the second quarter the vacancy rate stood at 15.4 percent (a 1.3 pp increase q/q and y/y likewise), which translates to over 767,300 sqm of readily available office space. The  vacancy rate in central locations amounted to 17.6 percent, while in non-central locations it accounted for 14.4 percent of modern office stock.

Total office take-up in H1 2016 reached over 360,100 sqm. The highest demand was registered in the Upper South zone (80,800 sqm), the South West zone (68,500 sqm) and the two central zones: the City Centre Core (66,100 sqm) and Fringe (56,200 sqm). From January to June 2016 new leases accounted for 60 percent of all deals, while renegotiations made up 31 percent of total take-up. 17 percent of space leased in H1 was preleased.

The largest deals in H1 2016 included a renewal and expansion of 13,800 sqm by a Publicis Groupe in Platinium Business Park III, a pre-construction deal of 7,600 sqm by Allegro in Q22 and a renewal transaction of 5,500 sqm in Atrium Centrum by UPC.