Tenants' activity in Warsaw to decrease next months: CBRE

Tenants' activity on the Warsaw office market in the first three months of 2020 was similar to last year's. As much as 138,900 sqm of office space was rented, which was almost the same as in the first three months of 201, according to the latest CBRE report. There is currently over 700,000 sqm of office spaces under construction.

“Currently, the impact of the epidemic on the Warsaw office market is not yet strongly felt. However, we forecast that its development, resulting in the suspension of decisions and verification of some plans, may have a negative impact on tenant activity in the next two quarters. The size and activity of the Polish office market are so large though that the results for the whole year should not be very bad. The type of transactions will definitely change. There will be fewer new contracts, more renegotiations and short-term contracts. It can also translate into increased interest in flexible spaces, the so-called coworking,” Joanna Mroczek, head of Market Research and Consultancy at CBRE, said.

Undoubtedly, not all tenants will experience the negative effects of a pandemic, which will be conducive to faster market regeneration. Sectors for which the current situation may have positive effects include FMCG, IT and telecommunications, logistics, pharmacy and healthcare, and in the long run local domestic tourism and the construction sector, which will potentially be able to count on government and EU support. Also for BPO / SSC, which continues to thrive, Warsaw and other Polish cities may become an even better alternative compared to other markets.

(WBJ)