According to “Office Occupier: Office Market in Warsaw”, a report published by Cresa Poland, total leasing volume for the first three quarters of 2021 topped 398,100 sqm, accounting for 51.2% of the annual average for 2015-2020.
“Office tenants on the Warsaw market have resumed discussions about relocations and lease renegotiations as such processes will always bring savings. We are also seeing a growing demand for implementing solutions to improve a work environment and create optimal spaces for working, meetings and employee integration,” says Artur Sutor, Partner, Head of Office Department at Cresa Poland.
At the end of the third quarter of 2021, Warsaw’s office stock reached close to 6.2 million sqm, up by 5.8% year-on-year.
The third quarter of 2021 saw three new office projects added to the Warsaw market: Widok Towers (S+B Gruppe, 28,600 sqm) and the two buildings of Capital Park’s Norblin Factory (Galwan and Plater, 19,500 sqm each). Total new supply hit 293,900 sqm in the January-September period.
Warsaw’s total leasing volume for the first three quarters of 2021 topped 398,100 sqm, accounting for 51.2% of the annual average for 2015-2020. The third quarter alone saw close to 149,300 sqm transacted, representing a 36% increase year-on-year. New leases and renegotiations accounted for 54% and 42% of the office take-up, respectively, while expansions made up the remaining 4%. The third quarter has been the best in the year to date on the Warsaw market in terms of leasing activity.
The largest leases in Q1-Q3 2021 were the renegotiation of 20,600 sqm in the Senator building (signed by a confidential tenant) and a renegotiation of 13,900 sqm in Atrium Garden (a confidential tenant). It was followed by a pre-let agreement of 11,300 sqm signed by The City of Warsaw in Widok Towers.
Absorption came to 21,100 in January-September 2021, with the figure for the third quarter at 15,200 sqm, down by 25.8% on the same period last year.
At the end of the third quarter of 2021, Warsaw’s vacancy rate remained unchanged at 12.5% compared to the previous quarter, but was up by 2.9 pp year-on-year.
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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