Record 6 months for Warsaw office lettings

According to Savills latest report, Warsaw’s total office stock reached 6.27 million sqm in the first half of 2022, with office space slowly becoming more evenly distributed across the city. Central zones currently account for 45 percent of the capital’s office stock while the remaining 55 percent is located outside the city center.

The office development pipeline in Warsaw currently stands at 303,100 sqm, or its lowest since records began. Another 122,500 sqm is expected to be added to the market in the second half of the year, bringing 2022’s total new supply to 251,500 sqm. The largest projects underway include Varso Tower (66,300 sqm), The Bridge (47,000 sqm), and Skyliner II (38,000 sqm), with the first of the three to be delivered this year.

“Development activity has been slowing since the first quarter of 2020 as some projects were put on hold following the outbreak of the pandemic and the war in Ukraine, whose consequences include rising prices of materials, an outflow of some Ukrainian construction workers, and project postponement. As a result, the total office development scheduled for completion in 2023-2024 amounts to 251,600 sq m, which will further widen the supply gap, making it more difficult for tenants to secure new office locations in the coming years,” Daniel Czarnecki, Head of Office Agency, Landlord Representation, Savills, commented.

(WBJ)