Tenants who are interested in Warsaw office space have a wide range of options; there were 275 400 sq. m of offices leased in the capital last year, 77% of which are situated outside the city center of Warsaw. The largest projects commissioned last year are: Business Garden 3-7, which delivered 54 800 sq. m (Vastint), West Station II of total space amounting to 35 000 sq. m (HB Reavis) and D48 which delivers 23 400 sq. m (Penta Investments).
It is worth pointing out projects which are currently in progress. There are currently 750 000 sq. m of office space under construction in Warsaw. The majority of them will be completed after 2018, which is a result of implementation of a number of buildings of big scale, which require longer time of construction. Interestingly, 78% of offices are situated in the city center of the capital, which can result in a possible lack of new investments outside the city center in the few years’ time. We expect further decrease in volume of new supply this year, which should be compensated in the years 2019-2020 – says Tomasz Czuba.
The Warsaw office buildings successfully attract new tenants which is confirmed by the vacancy rate. It currently amounts to 11.7% and it is the lowest result from the year 2013. It maintains at the level of 9.1% in the city center, whereas outside – 13.2%. The decrease of the vacancy rate results from the combination of high demand with a new supply, which is lower than in the previous year. The forecasts for this year are equally optimistic – sums up Mateusz Polkowski.
The highest transactions rates were relatively stable last year. A slight correction occurred in Q2 in the Central Business Area, where the rates were at the level of 20.5-23 EURO/sq. m/month. The rates in the highest class investments situated in the best areas outside the city center amount to 11-16 EURO/sq. m/month.
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