Increasing popularity of pre-lease contracts

Despite a relatively small amount of new buildings finished in 2011 the previous year has brought a record-breaking amount of office space rented (850 000 sq. meters).

In the first quarter of 2012 the demand was still high therefore over 225 000 sq. meters of office space has been rented.


Twenty office buildings which cover 169 000 sq. meter have been built in 2011 and the first quarter of 2012 in Warsaw. However it is still not enough for the constantly growing demand.  Developers are mobilised to increase the supply by a growing number of people interested, especially foreign investors who need modern office buildings.  Currently around 540 000 sq. meters of space is being built of which 300 000 sq. meters are about to be finished by the end of 2012.


There is also certain growth observable on the renting market. 600 000 sq. meters have been rented in 2011, and in the first quarter of 2012 the number was 125 000 sq. meters. A considerable number of offices (20-25%) have been rented based on pre-lease contracts. Such a solution has been chosen by Kia Motors (about 2500 sq. m), Oriflame (3500 sq. m) and Imtech (7000 sq. m) and ING Inc. which rented 12 100 sq. m.  Monika Rogucka, Head of Office Agency in Polish Properties explains that pre-lease contracts are advantageous both for developers who receive finances for building, and for tenants who have an opportunity to adjust office spaces specifically for their needs while they are still being designed.


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