According to “Office Occupier: Office Market in Warsaw”, a report published by real estate advisory firm Cresa Poland, total leasing volume reached close to 249,300 sqm in the first half of 2021, accounting for 32.1% of the annual average for 2015-2020.
“The Warsaw market saw many tenants develop back-to-the-office strategies in the first half of 2021. Companies are showing a growing interest in resuming talks about leasing office space. There has been a notable improvement in occupier sentiment, with tenants increasingly choosing to engage advisors for lease renegotiations or office relocation,” says Artur Sutor, Partner, Head of Office Department at Cresa Poland.
The capital’s office stock amounted to 6.1 million sqm at the end of the second quarter of 2021, having expanded by 7.2% year-on-year.
Two new office buildings were added to the Warsaw market in the second quarter of 2021: Ghelamco’s Warsaw UNIT (56,400 sqm) and Waryński’s EQ2 (2,800 sqm). Total new supply hit 226,400 sqm between January and June 2021 – more than double the figure recorded in the first half of last year.
Warsaw’s total leasing volume reached close to 249,300 sqm in the first half of 2021, accounting for 32.1% of the annual average for 2015-2020. The second quarter saw over 140,000 sqm transacted, down by 28% on the same period last year. Renegotiations and new leases made up around 47% and 45% of the office take-up, respectively, followed by expansions (7%) and owner-occupier deals (1%).
The largest lease in H1 2021 was the renegotiation of 20,600 sqm in the Senator building (signed by a confidential tenant). It was followed by a pre-let agreement of 11,300 sqm signed by The City of Warsaw in Widok Towers and a pre-let agreement in the Fabryka PZO by Warsaw Transport Authority (9,800 sqm).
Absorption came to 5,900 sqm in the first half of 2021, but turned negative in the second quarter (-8,800 sqm).
At the end of the second quarter of 2021, Warsaw’s vacancy rate stood at 12.5%, up by 1.1 pp quarter-on-quarter and by 4.6 pp year-on-year.
“The vacancy rate continued its upward trend in the first half of the year, registering the strongest growth since the supply peak in 2016,” says Iga Kraśniewska, Research Manager at Cresa Poland.
Asking rents stand at €10,0-15,0 sqm/month in Służewiec, €10,0-16,0 in Jerozolimskie Avenue, €14,0-25,0 in City Centre West and at €14,5-27,0 sqm/month in the Central Business District.
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