According to the latest report entitled At a Glance – Office Market in Warsaw (Q4 2016), the supply of office space in Warsaw at the end of last year exceeded 5.18 million sqm, where in 2016 only the stock increased by 410 000 sqm. BNP Paribas Real Estate Poland experts signal that 650 000 sqm under construction and more than a million of square meters of additional pipeline projects constitute a vital argument for tenants either searching for new locations or planning to renegotiate their leases.
Less vacancies than forecast
The attraction of new buildings
Last year it was the schemes located in the vicinity of the Daszyński Roundabout, Dworzec Gdański station and the corridor running along Aleje Jerozolimskie that attracted the greatest interest of businesses searching for new locations for their offices, while buildings located in the Mokotów office hub provoked much less interest.
Falling effective rents
According to the report drawn up by BNP Paribas Real Estate Poland, at the end of 2016 monthly rents for prime office schemes located outside of the centre of Warsaw were at a level of 14-15 euro. However, the average rent to be paid for one square meter of office space in the area is at a level of 11-13 euro per month.
The authors of the report stress that considerable supply, extremely competitive market and increasing flexibility of landlords resulted in the fact that in 2016 large tenants (above 2 000 sqm) interested in offices both in the city centre and outside of it could count on obtaining effective rents by 20-30% lower than the asking rents.
Rejuvenation or else
Mature office buildings that have undergone complex modernization are able to successfully compete with new schemes. The raised efficiency norms and application of modern technical solutions combined with prime and renowned locations that guarantee accessibility and exposure are key factors in not only retaining existing clients, but also in attracting new ones
Małgorzata Fibakiewicz, Head of Office Agency, BNP Paribas Real Estate Poland
The office centre closer to Wola
Only as far back as two years ago the office district in Wola, with its 150 000 sqm of space, did not look too prosperous. However, we have since witnessed an extremely dynamic race between supply and demand. Over only 2015 and 2016 the office hub in Wola grew to twice its original size, while over the coming twenty four months in the areas in the direct vicinity of the Daszyński roundabout and slightly further afield there will be more than 150 000 of sqm of new office space delivered to the market.
Anna Staniszewska, Head of Research and Consultancy for Central and Eastern Europe, BNP Paribas Real Estate
Head of Marketing & PR, Central & Eastern Europe at BNP Paribas Real Estate Poland