Advisory firm JLL summarizes the situation on the office markets in Warsaw and eight other major Polish cities.
“Demand for modern office space in Poland continues to be strong. In total, lease agreements for 932,700m² were signed between Q1 and Q3 in Warsaw and other major cities. Warsaw accounted for 530,700m², while regional cities came in with 402,000m². What is interesting is the fact that between Q1 and Q3 none of the lease deals signed in Warsaw exceeded 10,000m² of space, and much larger lease agreements were concluded in regional cities”, says Mateusz Polkowski, Head of Research and Consulting, JLL.
“In terms of office markets outside Warsaw, the highest tenant activity was recorded in Kraków - 149,750m², and Wrocław - 78,850m². Both cities were at the forefront of occupier activity and together accounted for 56% of total demand registered in regional markets, comments Karol Patynowski, Director, Regional Markets, JLL.
In total, over 691,000m² of office space was delivered to market between Q1 and Q3 in Warsaw and eight other major cities in Poland. Warsaw alone accounted for nearly 391,000m² of this total, while regional cities outside Warsaw accounted for 312,500m². Excluding Warsaw, the largest amount of office space was completed in Kraków.
Vacancy rate and rents
The vacancy rate in Warsaw stood at 14.6%. Outside Warsaw, the lowest vacancy rate was recorded in Kraków (6.3%) while the highest was in Katowice (15.5%). It is worth noting the drop of vacancy rates in Szczecin, with a downward shift from 17.7 % in H1 2016 to 14.7% by the end of September 2016.