Record demand for office space in Warsaw in H1 2017

The office market in Warsaw broke another record – total demand for office space in H1 2017 stood at 391,400 sqm. Wola continues to grow in terms of both popularity and significance, consultancy JLL stated. “The main beneficiaries of occupier activity were the City Centre, Mokotów and the Central Business District. Furthermore, Wola continues to be popular among both developers and prospective tenants,” sais Tomasz Czuba, regional director, head of Office Agency, JLL. High demand has triggered a high level of developer activity. As many as 16 projects were delivered in H1 2017, comprising 131,400 sqm of space, while approximately 750,000 sqm is currently under construction across the city. “We estimate that approx. 155,000 sqm will be delivered to market by the end of this year. What is important is the fact that a significant part of volume in the pipeline is made up of several large-scale projects scheduled for completion in 2019-2020, when Varso, The Warsaw Hub and Mennica Legacy Tower, among others, will enter the Warsaw office market,” commented Mateusz Polkowski, head of Research & Consulting, JLL. The vacancy rate in Warsaw decreased marginally in H1 2017 and currently stands at 13.9 percent (13.2 percent in central areas and 14.3 percent outside of it). Rents in CBD are quoted at €20.5-23.0 / sqm / month, while prime assets in the best non-central areas lease for €11.0-16.0 / sqm / month.