Steady state in leasing

Public administration bodies in Poland at different levels are leaving their premises in old tenement houses in droves. Such buildings often require extensive renovation. Even though these offices are usually located in the central areas of the city, the costs of operating buildings that are completely energy inefficient are so high that even the fear of accusations by the tabloids of wasting public money is not deterring the public sector from venturing into the commercial market. More and more of such tenants are coming onto the market, thus refuting the notion that the trend for new premises for public institutions is some kind of temporary phenomenon. In Warsaw last year, Poczta Polska decided to change its offices and leased an area of 12,600 sqm in the Domaniewska 37C building from Polski Holding Nieruchomości, which is also a state-owned entity. The General Directorate of National Roads and Motorways (GDDKiA) also leased 11,700 sqm in Green Corner from Skanska Property Poland.