Warsaw office market

Warsaw (pic Ghelamco)
Warsaw (pic Ghelamco)
We know the summing-up of the first six months on the Warsaw office market. There is still high demand for offices.

There are 360 100 sq. m within lease contracts signed in the first six months of 2016, which means that the demand for offices is still at the very high level. According to the summing-up of the first half of the year conducted by JLL, 217 800 sq. m were rented in the second quarter of 2016. The most popular location among tenants is the city center (122 00 sq. m), and Mokotów occupies the second place (80 000 sq. m). The interest in other regions such as Jerusalem Avenues or the surroundings of the Chopin airport can also be observed. New lease contracts in the buildings located in Warsaw concern nearly 156 700 sq. m of leased area. The vacancy rate in the capital amounted to 15.4 per cent at the end of the first six months of the year. The prices of transaction rents in the city center are quite different in comparison to the prices outside the city center. The highest prices at the very heart of Warsaw amount to ca. EUR 21-23.5 for sq. m monthly, whereas in other far-away districts – EUR 11-18 for sq. m.   


The biggest lease contracts concluded in Warsaw in the first six months of 2016:


 Building   Size (sq. m)

 Secret tenant

Warsaw Financial Center 8 300


Q22 7 600 
Secret tenant Atrium 2 7 500
NC+ Canal+ 7 500
Budimex Skierniewicka 16-20 7 400
UPC Atrium Centrum 5 300

Source: JLL, PORF, H1 2016


It can be observed that currently there are both high demand and high supply. Ca. 237 00 sq. m of office space were commissioned in the second quarter. Additionally, record-breaking 350 100 sq. m of offices were delivered to the Warsaw market in the first six months of 2016. It is 26 per cent more than in the previous year. The most important event was commissioning of two office towers – Warsaw Spire A and Q22. It is the first such situation that two office towers were commissioned on the market in one year – says Mateusz Polkowski, Chairman in Department of Market Research and Consultancy, JLL. The biggest offices realized in the first six months of this year are Warsaw Spire A, Q22, Gdański Business Center D and Proximo I.


According to experts of JLL, the number of 5 million sq. m of supply on the Warsaw office market will be exceeded in the second half of the year. There are currently ca. 545 000 sq. m of offices under construction.


Tags: Ghelamco Q22
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