Warsaw office market to see continued growth – report
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Warsaw will, in the next five years, be the third (after Moscow and Istanbul) fastest-growing office market in Central and Eastern Europe, with approximately one million sqm of occupied office space expected to be added in the city within the period, according to a recent report by Cushman & Wakefield. Earlier this year, the total existing modern office stock in the Polish capital exceeded 5 million sqm. Over the last four quarters, the absorption rate in the city amounted to more than 250,000 sqm, which testifies to the strong growth of the market. The migration of shared services centers from other European markets, improved profitability of businesses operating on the Polish market and structural economic changes leading to an increased importance of the financial and business services sectors will be some of the major drivers of the demand for office space in Warsaw in the near future, the Cushman & Wakefield study said. According to the company, the growth in the Warsaw office market will be accompanied by changing tenant preferences and tenant relocations, with occupiers continuing to move to newer or better located buildings. “In the coming years, we can expect an increased tenant migration both between and within office zones,” said Bolesław Kołodziejczyk, a senior consultant at Cushman & Wakefield and the author of the report.
