The vacancy rate on the Warsaw office market reached 13.9% at the end of June, with gross take up in H1 2017 nearly reaching 400,000 sqm. The Polish Office Research Forum has published its figures for Q2 2017 for the office market in Warsaw.
At the end of the first half of 2017 total modern office stock in Warsaw accounted for 5,161,100 sqm. In H1 2017, more than 131,000 sqm of office space was completed. Between April and June 2017, the market grew by 47,200 sqm. In second quarter 6 projects were completed, the largest one being modernisation of Ethos building with 12,100 sqm of office space.
The vacancy rate in Warsaw reached 13.9% at the end of June (a 0.1 pp decrease q-o-q and 1.5 pp decrease compared with the analogical period in 2016), which implies 715,800 sqm available for immediate lease. Vacancy rate in central locations amounted to 13.2% while in non-central locations it reached 14.3%.
Gross take-up in 2017 YTD amounted to 391,400 sqm. In the second quarter 200,500 sqm were leased in Warsaw. The strongest leasing activity was recorded in City Centre zone (64,000 sqm leased) and in Mokotów (48,500 sqm leased).
Between January and June 2017 the highest share in total take-up volume was attributed to new deals (56%). Renewals of current lease agreements attributed to 28% while expansions to 16%. Pre-let transactions made up more nearly 17% of recorded demand.
The largest lease transactions in the first half of 2017 included: a renewal of Millenium Bank lease agreement in Harmony Office Centre (18,300 sqm), a pre-let agreement by Citi Service Center Poland in Generation Park X (13,600 sqm), an expansion and renewal by Alior Bank in Łopuszańska Business Park (13,400 sqm) and an expansion and renewal by AstraZeneca in Postępu 14 (13,200 sqm).
Polish Office Research Forum: Market data prepared by a team of analysts (CBRE, Colliers International, Cushman&Wakefield, JLL, Knight Frank, Savills) concern modern office stock, new completions, the number of deals and take-up volumes, and vacancy rates.
