Warsaw's City growing despite pandemic
17:40
The second quarter in the Warsaw office market was full of new supply, which has already been almost completely absorbed by the market, according to Cresa Polska. As Cresa calculated, a total of 100,000 sqm were delivered to the market, and another 700,000 sqm is under construction.
The stock of office space on the Warsaw market increased by 2.6 percent during the year. and currently amounts to 5.69 million sqm.
For comparison, at the end of 2019, there were 565,000 sqm of offices in the whole of Poznań, and 528,000 sqm in Łódź. In Kraków, the second largest office market in Poland in terms of office space, there was 1.4 million sqm of space last year.
“The relatively high level of finalized transactions, including the record-breaking contract between PZU and Skanska, shows that companies continue to include the demand for modern offices in their strategies. Tenants return to their offices and employees often choose a hybrid solution (a combination of remote and stationary work),” Artur Sutor, partner at Cresa Polska, said.
In the second quarter of 2020, four office buildings were commissioned in Warsaw: Varso II (39,900 sqm, investment by HB Reavis), Chmielna 89 (25,200 sqm, investment by Cavatina), Browary Warszawskie Biuro at Willi (14,900 sqm, investment by Echo Investment) and DSV headquarters (20,000 sqm, investment by FinTech Construction).
The largest contract in the second quarter of 2020, as well as in the history of the office market in Poland, was the pre-lease contract for the 140-meter Generation Park Y skyscraper by the largest insurance company in Poland, PZU (46,500 sqm).
