Poland Warsaw office availability declines

Warsaw’s modern office stock totals approximately 6.23 mln sqm. No new office buildings were completed in Q3, with just three projects delivered since the beginning of the year. A further 162,000 sqm is expected to enter the market by 2029, primarily in central locations, including Towarowa 22, Skyliner II and Upper One.

Office demand in Warsaw over the first three quarters of the year is 22 pct higher than in the same period last year. Limited availability and sustained demand are creating favourable conditions for new office development.
Katarzyna Gajewska, director of research and market analysis at CBRE.

The vacancy rate has fallen by 1.8 percentage points year on year. Across central Warsaw, vacancies stand at 4.3 pct, compared with 11.1 pct outside the centre. Availability is particularly limited in the Central Western Business District, around Rondo Daszyńskiego, where the vacancy rate is approximately 3.6 pct. By contrast, Służewiec recorded a vacancy rate of 16.2 pct, down from 18.8 pct a year earlier.

Office take-up reached approximately 175,300 sqm in Q3, bringing the year-to-date total to around 592,000 sqm. New leases and pre-lets accounted for 56 pct of demand, while lease renegotiations represented 33 pct and expansions 8 pct.

The Central Western Business District was Warsaw’s most active leasing location, recording approximately 200,000 sqm across nearly 130 transactions since the beginning of the year, equivalent to around 34 pct of total demand. Służewiec accounted for 18 pct, followed by the Central Business District with approximately 17 pct.

Business services companies were the largest source of office demand, accounting for 16 pct of leasing activity. Banking, insurance and investment firms represented 13 pct, while manufacturing and IT companies each accounted for 11 pct.