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Office & mixed-use development
After a decade of dynamic growth and record-breaking supply, development activity in the office market has slowed significantly. The limited supply of new space is now having a major impact on the demand structure, rental rates, lease renegotiations, and real estate asset management strategies – both in Warsaw and Poland’s regional cities
For the last few years, we’ve been observing a clear slowdown in the delivery of new office space. The limited supply of new projects has become one of the key factors shaping the market today. Following the intense development period from 2015 to 2020, when record volumes of office space were delivered in Poland’s largest cities, since 2022 we’ve seen a noticeable halt in new investments, and the availability of new space continues to decline. As explained by Jan Szulborski, the business development and insight manager at Cushman & Wakefield in Warsaw, this drop-off has resulted from the supply side adapting to reduced tenant demand, which itself stems from the current economic uncertainty and the widespread adoption of remote and hybrid work models since the pandemic. “An additional factor limiting the development activity was the inflation crisis, which led to a significant increase in construction and material costs. As a result, only 340,000 sqm of new
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