Warsaw office stock reaches 4.75 million sqm - C&W

The total modern office stock in Warsaw reached 4.75 million sqm at the end of Q1 2016, with ca. 75 percent of that space located in the central Core and Fringe zones, as well as Upper South and South West, according to Cushman & Wakefield’s "Skyline Tracker Warsaw – Spring 2016" Despite the growing vacancy rate, which reached 14.1 percent at the end of Q1 2016, exceeding the 2011 figures by almost 7.5 pp., there has been a visible trend of increased developers’ activity, reflected in high supply levels. This trend might continue for the next 3 to 4 years, subject to demand levels and absorption rates. In the years 2012–2015, 1.12 million sqm of modern office space was delivered to the Warsaw market, accounting for almost 24 percent of the capital’s total stock. Between January and May of this year, over 170,000 sqm was put into use, with a further 700,000 sqm under construction (this figure is similar to those recorded in recent years). As much as 240,000 sqm is at the final stages of fit-out and preparation for handover. At the same time, around 220,000 sqm is being developed within recently started projects that are currently at the ground works stage. Approximately 330,000 sqm of new office space is to be delivered to the market in 2017, and a further 260,000 sqm in 2018. However, the completion of some of the investments might be delayed in case of adverse lease market conditions.