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 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 EUR 10,0-15,0 sqm/month in Służewiec, EUR 10,0-16,0 in Jerozolimskie Avenue, EUR 14,0-25,0 in City Centre West and at EUR 14,5-27,0 sqm/month in the Central Business District.
Cresa is the world’s largest commercial real estate advisory firm that exclusively represents occupiers and specializes in the delivery of fully integrated real estate solutions. It serves clients through more than 80 global offices. Cresa Poland offers unbiased, independent commercial real estate advice. Its integrated services include conflict-free tenant representation, capital markets, market research and advisory, valuation, design & project management and workplace strategy. To learn more, please visit: www.nmrk.pl
