The Polish Commercial Real Estate Chamber (PINK) is hereby publishing figures on the office market in Warsaw for Q1 2020. The data is sourced from advisory companies from the commercial real estate sector (BNP Paribas Real Estate, CBRE, Colliers International, Cresa, Cushman&Wakefield, JLL, Knight Frank, Savills) and includes information on modern office stock, new completions, take-up volumes and vacancy rates.
- At the end of Q1 2020, the total modern office stock in Warsaw accounted for 5,588,500 sqm.
- In Q1 2020, approximately 6,700 sqm of office space was completed in one scheme - Varso 1.
- The vacancy rate in Warsaw reached 7.5% at the end of March (a 0.3 pp decrease q-o-q and 1.6 pp decrease compared with the analogical period in 2019), which translated into nearly 418,000 sqm office space for lease. The vacancy rate in central locations stood at 4.9% while in non-central locations it reached 9.1%.
- In Q1 the gross demand reached 138,900 sqm. The strongest leasing activity was recorded in the City Centre and Mokotów.
- Between January and March 2020 the highest share in total take-up volume was attributed to new deals (55% - including owner-occupier deals). Renewals of current lease agreements attributed to 31% while expansions to 14%.
- Confidential client (insurance sector) renewal transaction was the biggest deal signed in Q1 2020, it covers 17,500 sqm of office space in Konstruktorska Business Center building.
- The other largest transactions leased in first quarter 2020 cover three pre-lets, namely: confidential client (services sector) transaction in Fabryka Norblina for 8,500 sqm, CBRE in Warsaw UNIT for 4,300 sqm and Orsted for 3,800 sqm in Varso 2.
