Warsaw - developers avoiding the city center

Konstruktorska Business Center
Konstruktorska Business Center
Only two out of fifteen office investments finished since the beginning of the year are located in Capitol's city center.

According to the data provided by Warsaw Research Forum, the volume of office space in Warsaw by the end of the third quarter of 2013 has reached the level of 4 071 000 sqm. Since the beginning of the year, over 246 400 sqm of space has been put into operation and 94 300 sqm in the third quarter alone. Developers avoid the strict city center - only two out of fifteen completed projects are located in the center (Plac Bankowy - 3 700 sqm, and Chmielna 25 - 4 300 sqm). As much as 45 % of new space is located in the Upper South district (Mokotów).

According to Warsaw Research Forum, the biggest of the investments put into operation since the beginning of the year are: Konstruktorska Business Center (48 300 sqm), Miasteczko Orange (43 700 sqm) and Marynarska 12 (40 000 sqm).

High activity of the developers resulted in an increase in the level of vacancies from 8,8 percent noted by the end of the last year, to 10,9 percent. The free space in the center made up about 10,5 percent of space while in other districts it was 11,1 percent.

First three quarters of the year also characterized with an increased activity among the leaseholders, which signed the deals for a total of 518 600 sqm, which translates to an increase by 14 percent in comparison to the analogous period of 2012. The most deals were signed in Upper South district (183 300 sqm). In the center, a total of 109 100 sqm has been rented. In the third quarter, the pre-let transactions made up 37 percent of all deals and renegotiations created 26 percent of the market.

Among the biggest transactions observed in the third quarter of 2013 were: the renting of 22 000 sqm by Polkomtel in a building by Konstruktorska 4, the relocation of Getin Group's seat to Wola Center (18, 900 sqm) and the rent deal of BZ WBK for a location in Atrium One (11 800 sqm).

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