Rents high, but falling
In a February report from the agency, only London, Paris, Frankfurt and Edinburgh (Moscow was not included in the report), were more expensive than Warsaw for class-A office space. But in its latest report, Healey & Baker said Moscow, Stockholm and Zurich are also now more expensive. (For more news on Warsaw office rents and yields, see Lokale Immobilia page 3)
Warsaw's fall in the rankings comes with a fall in rents over the past year that is expected to continue until 2001.
Average monthly rent for downtown office space in Warsaw is now at $35 a square meter, $1 lower than a $36 rate cited in Healey & Baker's February report. Historically, in 1991, monthly rents in downtown Warsaw were as high as $54 per square meter. Rents in 1998 declined 10% and are expected to fall by a similar amount this year, Healey & Baker said.
"1998 and 1999 are the first years in which new supply actually emerged in sufficient quantities to meet demand," the report said. "A decline in rents in 1999 followed by a stabilization in 2000/2001 is expected."
Warsaw's fall in the rankings comes with a fall in rents over the past year that is expected to continue until 2001.
Average monthly rent for downtown office space in Warsaw is now at $35 a square meter, $1 lower than a $36 rate cited in Healey & Baker's February report. Historically, in 1991, monthly rents in downtown Warsaw were as high as $54 per square meter. Rents in 1998 declined 10% and are expected to fall by a similar amount this year, Healey & Baker said.
"1998 and 1999 are the first years in which new supply actually emerged in sufficient quantities to meet demand," the report said. "A decline in rents in 1999 followed by a stabilization in 2000/2001 is expected."
