Take-up on Polish office market at historic high in 2015

International advisory firm JLL said in a report that 2015 saw a record high take-up on the Polish office market with lease agreements for about 1.5 million sqm. “2015 proved to be an exceptional year, recording the highest tenant activity in the history of Poland's office market. Nationally, lease agreements for approx. 1.5 million sqm were signed with, Warsaw accounting for 834,000 sqm of this total. In the capital city, the services sector led the way with a 24 percent share of demand, while IT & telecom companies accounted for 19 percent. Outside Warsaw, the modern business services sector continues to propel market development with a 56 percent share of overall take-up registered in 2015 on major regional markets," said Anna Młyniec, Head of Office Agency and Tenant Representation at JLL. Last year 277,600 sqm of office space entered the market in Warsaw and around 365,000 sqm of new office space was brought to the major markets outside Warsaw.

JLL also said that prime headline rents in Warsaw edged down over the course of 2015, with city centre rents declining from €22–24 / sqm / month to €21–23.5 / sqm / month and non-central locations commanding rents of €11–18 / sqm / month. Rental levels across core regional office markets leveled off in 2015. Currently, prime headline rents range between €11 to €12 / sqm / month in Lublin and €14 to €14.5 / sqm / month in Poznań, Wrocław and Kraków.