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Property Times

Warsaw : Tenants' market - Q1 2014

A research produced by

Ten buildings totalling 84,300 sq m were added to the Warsaw office market in Q1 2014, which took the modern office stock to 4,200,000 sq m.

According to developers’ plans, over the next nine months of 2014, approx. 230,000 sq m will be delivered in Warsaw, which gives 310,000 sq m in the whole of 2014. It will represent the highest level of the annual supply since 2000. In 2015 the office supply may increase by 240,000 sq m.

Over 86,500 sq m (excl. renegotiations) was leased in Q1 2014, which represents a similar level in comparison to Q4 2013 and is 11% lower compared to corresponding period of 2013. Renewals and renegotiations of existing lease contracts were still visible trends on the Warsaw market.

As a consequence of the large volume of new deliveries, the vacancy rate in Warsaw increased slightly by 0.5 percentage points compared to Q4 2013 and reached 12.2% at the end of March 2014. It represents the highest value recorded since 2003.

Prime asking rents are at a level of €22.5-25.5 per sq m per month in the central locations and €13.5-15.5 per sq m per month out of the city centre.

Source : DTZ (Groupe UGL)