No signs of slow-down

Occupier activity shows no sign of slowing down on the Warsaw office market after the first half of 2019 – the leasing volume in the second quarter of 2019 alone hit the highest quarterly level since records began. This record take-up was driven by several large office lettings in central locations, particularly in near the Daszyńskiego Roundabout. Pre-leases make up a growing proportion of take-up due to the shrinking volume of office space available for immediate occupancy. They account for 68 pct of office projects to be delivered to the market in the second half of 2019 and 42 pct of those scheduled for completion in 2020. This is likely to push Warsaw’s vacancy rate down in the coming 18 months with effective rents coming under pressure. The supply gap that began in 2018 will carry into 2020 despite the planned annual office supply in this period being above the five-year average. The falling availability of office space across Warsaw will benefit non-central locati