Record amount of office space delivered in H1 2016 - Colliers

At the end of the H1 the total supply in the nine major markets in Poland reached 8.6 million sqm. Developers completed a record amount of modern office space – almost 572,000 sqm. Over 1.4 million sqm of office space is under construction and the capital accounts for 609,000 sqm of new offices. The vacancy rate for Poland is 13.4 percent according to the Colliers report "Market insights | Office market H1 2016."

In the analyzed period, sixteen new projects were delivered to the Warsaw market with total leasable area exceeding 350,000 sqm. Over half of the new supply was completed in the city center where two of the largest office buildings were finished: Warsaw Spire A (Tower) and Q22. In the regional markets, 33 office projects were completed with a total area of 221,900 sqm. 

In H1 2016, the gross demand in regional markets amounted to 268,400 sqm and a significant part of this was made up of agreements signed in Kraków (41 percent of the total volume). In the first half of 2016 base rents remained unchanged. Office space in Warsaw was offered from €12 to €22.5 sqm per month, while in regional cities from €10 to €16.5 sqm per month. We will continue to observe a decline in average rental rates, both basic and effective, especially in markets with high construction activity.