DTZ company presented its fourth report from the series Skyline Tracker Warsaw - Tracker Skyline Autumn 2012. It shows the developers' activity on commercial real estate market in the capital. Currently there are over 720 000 - 730 000 sq m of office space under construction, which means its high supply in the coming years.
By 2015, the largest amount of office space is expected to be in the three districts of Warsaw, considered business centers - Upper South, South West and Central. 75% of the office space at the end of the third quarter of 2012 were in these areas. This means that a very large area, since the total resources in Warsaw amounted to approximately 3.75 million square meters.
Number of realized investments increased by 30% compared to the Skyline Tracker Summer 2011 report, and three times compared to the Skyline Tracker Spring 2010.
In 2012, 165 000 sq m was introduced to the market.Another 80 000 square meters can be completed before January. The annual supply will be twice higher than in the previous year, reaching 245 000 sq m. In 2013, approximately 330 000 - 340 000 sq m of office space is planned.
The supply of 240 000 - 250 000 square meters is planned for 2014, of which, 170 000 -180 000 sq m is under construction. In the next year, 310 000 - 320 000 sq m is planned, but 45% of the area is dependent on funding.
The following conclusions are drawn in the report: in the near term the position of the business districts of the capital, mentioned above, will strengthen, the amount of vacant space will increase and potential tenants will have a very wide range of office space, which will give them a favorable negotiating position. This may lead to lower reserve prices and effective rents.
A record amount of office space, located at present in progress, can lead to temporary oversupply on the market. In the locations with the highest projected increase in resources, we expect vacancy rates rise and fall of effective rents, especially in buildings characterized by a lower technical standard or less favorable accessibility and visibility - says Katarzyna Lipka, Senior Consultant in the Department of Market Analysis and Consulting of DTZ.
Full version of the report in PDF format below.
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