Public agencies lease more office space - CBRE

Polish state agencies have been increasingly active in leasing new office space for three years, taking advantage of the increasing supply of office space, and the trend is expected to continue, CBRE analysts said. “The office market in Warsaw is increasingly mature and this is a great moment for the public administration sector to take advantage of the currently very competitive office market,” said Joanna Mroczek, Head of Research and Consultancy at CBRE. The largest transaction of this type to date was the lease of 16,500 sqm in Poleczki Business Park by the Agency for Restructuring and Modernization of Agriculture back in 2010. The move to new location not only helps public agencies improve their image, but is also motivated financially. “In order to increase future revenues, the next step for the agencies will be to sell their own buildings or land where they are situated, which is usually attractively located,” Mroczek explained. “There has been an increasing number of ‘sale & lease back’ type of deals over the past years in several countries, which consist in selling own buildings by public administration and leasing a long term lease agreement in the same building,” she added.