Warsaw office rents set to grow – JLL

The limited supply of new office space will soon lead to major increases in rental rates in several of Europe’s biggest office markets including Warsaw, according to JLL’s recent “European Office Rental Growth Hotspots 2018” report. In the Polish capital, the upward pressure on office rents will mainly be seen in the Central Business District and the City Center West zones where the current vacancy rate (4.3%) is much lower than the average rate for the entire city (10.8%), the study said. In 2017, the absorption of office space in Warsaw amounted to as much as 360,000 sqm. Meanwhile, only 275,000 sqm of new office supply hit the market last year. According to JLL experts, the situation in the center of the city should stabilize in 2019-2020. Non-central locations in Warsaw are also expected to witness rental growth due to the relatively small amount of new office space that is now under construction there.