Activity on the Warsaw market

The Warsaw office market in the first half of 2012 showed big activity. However, the total amount of signed lease contracts was slightly lower than last year.

3,7 mln sq.m is what was the resource of modern office area in the 1st half of the current  year, according to the report The Office Space Market in Warsaw in the 1st Half of 2012 (Rynek powierzchni biurowych w Warszawie w I połowie 2012), prepared by CBRE. 33 per cent of the mentioned amount is located in the Centre. In the first 6 months of the cu, the total amount of signed lease contracts in the capital was 298 000 sq.m. The 2nd stage of Poleczka Business Park with the area of 21 000 sq.m. is the biggest office project put into use in that period.

As Joanna Mroczek from CBRE says, Taking into account the weakness of złoty in relation to euro and the growing supply of implemented office space, tenants are more and more attentive to renting rates they pay. Because of that, we can expect further increases of rates only in the Central Business Area, where the supply remains restricted.

At present, about 700 000 sq.m. of office area is being implemented in the capital. 70 per cent of that is not a subject to pre-lease; if this situation prevails for a longer time, it may cause a decrease of average renting rates.

The rate of unrented office space in Warsaw is 7,4 per cent.  The majority of vacancies are located in the Southern-Upper Zone (about 65 000 sq.m.) and at the Edge of the Centre (about 62 000 sq.m.).

Capitalization rated for the best office buildings are 6,25 per cent. It is estimated that capitalization rated of buildings located outside the Centre will be subject to an upward tendency.

The full report is available below.

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