Warsaw office vacancy rates may reach 19 percent in 2016 - CBRE

Warsaw office market continues to experience strong supply pushing up vacancy rates, which currently stand at 13.4 percent and are expected to grow up to 19 percent with the next two years, according to a report by advisory CBRE. “Despite strong tenant activity on the capital’s market, vacancy rates will continue to go up with the large volume of office schemes being delivered. The trend has been observed for three years now and will continue over the next few years,” said Konrad Heidinger, senior analyst at CBRE. “In our most optimistic scenario, vacancy rates can go up to 19 percent in mid-2016,” he added. As much as 190,000 sqm of office space have been delivered to the market this year within 18 schemes. Another 375,000 sqm is scheduled to be delivered by the end of 2017. Altogether, there are 43 office schemes currently under construction in Warsaw, offering a total of 633,000 sqm of office space, 42 percent of which will be located in the city center.