Warsaw office market is growing at a fast pace. Total stock at the end of Q3 of this year stood at nearly 5.6 million sqm. Nearly one fourth of existing stock is less than 5 years old, and the sector is set to increase by at least another 10% over the next two years. Results recorded so far show that 2019 might prove to have been another record-breaking year in terms of office take-up. Demand is driven by leases signed for spaces of record-breaking size, one such example being the lease signed by mBank for nearly all the space in the Mennica Legacy Tower high-rise office building.
The Centre zone and its Centre West sub-zone continue to attract unflagging interest from both developers and tenants. The area around Rondo Daszyńskiego is evolving into the capital’s main office hub. When visiting that particular part of the city, it is difficult not to feel as if one was standing in the middle of an enormous construction site. The Warsaw Hub, Warsaw Unit, Skyliner, Mennica Legacy Tower, Browary Warszawskie and the Chmielna 89 high-rise tower are some of the projects currently under development there. Construction of the schemes named above goes hand in hand with an intensive commercialisation process accompanied by spectacular lease transactions concluded in respect of large spaces. The high level of interest shown by both sides of the market led to a further drop in vacancy rate, which at the end of Q3 in the Centre zone stood at a mere 5.5%
Mikołaj Laskowski, Head of Office Agency at BNP Paribas Real Estate Poland
One of the main growth drivers was the July transaction concluded by mBank for the space in the Mennica Legacy Tower high-rise office building, which was the largest lease to have been signed in the history of Poland’s office market (45 600 sqm). Two other significant transactions were concluded in the same period, i.e. two lease renewals for large spaces signed by Orange ( 44 800 sqm) and T-Mobile (27 400 sqm)
Patrycja Dzikowska, Head of Research & Consultancy, BNP Paribas Real Estate Poland
The largest volume of this type of transactions was recorded in the Centre West sub-zone, where they accounted for as much as 84% of the total volume of leases signed there
Patrycja Dzikowska, Head of Research & Consultancy, BNP Paribas Real Estate Poland