How much has the Warsaw office market grown?

Warsaw (pic Walter Herz)
Warsaw (pic Walter Herz)
The Warsaw office market joined the group of the largest markets in Europe due to the existing office resources. The market has grown by one-fourth within 3 years.

The recent years brought about a great boost in the office supply in Warsaw. The capital gained one million sq. m of offices from the beginning of 2014. Additionally, the developers do not want to slow down the pace. They commissioned more than 20 buildings in the Warsaw’s agglomeration last year, which delivered over 400 000 sq. m of the offices in total. According to the experts of Walter Herz, it is the best result in the history. It is worth pointing out that the similar amount of the offices was commissioned in the biggest Polish cities in 2016.

 

According to the experts of Walter Herz, new offices do not wait long for tenants and the majority of the recently built offices are almost totally rented. Additionally, the experts estimate that they can be 300 – 350 000 sq. m of new office areas more in this year in the capital. They point out that it will certainly strengthen the privileged position of the tenants. 

 

The Warsaw office market constantly grows. For instance, Proximo II, Generation Park, EC Powiśle, Business Garden II, West Station II, Mennica Legacy Tower and The Warsaw Hub are still under construction. Additionally, the building of a new complex, within which the highest tower in Poland – Varso Tower – is to be erected, is currently being conducted. 

 

According to the hypotheses of Walter Herz, the current year will be as successful for Warsaw as the previous one. A general economic situation in the country and all over the world will be of vital importance in shaping the situation on the office market. If the favoring investment atmosphere is to maintain, the office segment will continue its foregoing development – say the experts of Walter Herz.

 

In order to maintain the current demand for the offices in Warsaw, the issue of activity of the tenants from the BSS and the financial sector as well as the IT industry is very important. It will allow to maintain rents at a stable level. The experts of Walter Herz point out that the increase in rents can influence the increase in minimum wage and an optional increase of fees for perpetual usufruct. However, it is worth pointing out that the lease of office space in Warsaw is still much cheaper than in Western Europe.

 


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