Potential of Warsaw
The report by CBRE entitled "The office market in Poland 2012" states that the Warsaw real estate market did not suffer the effects of the crisis. The demand for office properties reached a highest value in 2011. Both, tenants and developers, show a great interest in office buildings. Vacancy rate and investments rate in 2012 and 2013 reached a record results.
For the first-class office properties in the city center tenants must pay 24 - 27 EUR per sq m per month, this is the highest rate in Poland.The average rental price in this location is 20 - 22 Euros in the center, while outside the center - only 12 - 16 EUR. Areas outside the city center of Warsaw are comparable in terms of rental prices to regional cities. Rates per square meter exhibit relative stability with a tendency to a slight increase in prime locations.
The supply of office space in Poland
Nationally, the supply has not yet responded to the market demand. In 9 major Polish cities, modern offices occupied a total area of nearly 6 million square meters, of which 252 000 sq m were completed last year. In Paris, modern office premises is 9 times more, and modern office space in London is 20 million square meters. Meanwhile in Warsaw we speak about containing approximately 3.5 million square meters of modern office space.Far behind the capital are Krakow (540 000 sq m), Wroclaw (400 000 sq m), Tri-City (380 000 sq m) and other cities.
At the same time pro-environmental trends are gaining in popularity. Of all the investment office in the course of realization, more than 40 percent buildings aspire to get so-called green certificates. More and more companies, tenants, create its special pro-environmental programs. Due to the increasing number of developers design and build facilities in accordance with the principles of sustainable construction - says Joanna Mroczek, director of market research at CBRE.
Lease transactions in Poland
In 2011, office space leased reached its record in Poland, even though only few office buildings were completed this year. Total amount of leased space in all Polish cities is about 900 thousand sq m. This provides an incentive for developers to continue to invest and start new projects.
Given the number of inquiries from both new and existing businesses, we expect that the demand for office space will remain at a high level in Warsaw and throughout Poland - says Łukasz Kałędkiewicz, director of the office of CBRE.
Sale and purchase transactions in Poland
In 2011, the sale and purchase transactions were finalized in 18 office buildings, of which only one contract involved a location other than Warsaw (Green Office in Krakow). The total value of the transaction amounted to 1.3 billion EUR. Focus building in Warsaw was sold with the highest price. German investment fund RREEF has purchased an office building for 117 million.
CBRE is the world's largest consulting firm, specializing in commercial real estate.Download PDF