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News Release

Warsaw

WRF issues office market data for the first quarter of 2010


Warsaw, 15 April 2010 - The Warsaw Research Forum has published data regarding the Warsaw office market for Q1 2010.
  • The market data prepared by the team focuses on: the size of modern office stock, completions of new buildings, take-up and vacancy rates. Two main markets of Warsaw were defined as the City Centre (CC) and Non-Central locations (NC). In order to ensure the most thorough market analysis, WRF has decided to divide these main markets (CC and NC) into suitable submarkets. 
  • The total modern office stock in Q1 2010 increased by 62,500 sq m and reached over 3.3 million sq m. Recently completed projects are located in the Upper South, Lower South and West subzones. The largest scheme delivered in Q1 was: Mokotow New City – 35,000 sq m (in Upper South subzone).
  • As a result of sound level of new supply and weak demand in the last quarters, the vacancy rate increased to almost 8% compared to nearly 3% recorded at the end of 2008. The lowest availability ratio was recorded in the East and South West subzones (around 3-4%) and the highest – in the Lower South (21%), Upper South and West (10%) due to large amount of space in recent completions.
  • The total volume of leasing transactions (take-up) amounted to around 122,000 sq m, which represents a 170% increase in comparison to the corresponding period of 2009. The increasing trend observed since Q1 2009 has been maintained. Comparing to Q4 2009, the office demand indicated increase of almost 25%. 
  • Last quarter the main interest of tenants’ was focused in Upper South subzone (Mokotow) with the take-up at a level of 45,000 sq m, again proved to be the most popular non-central locations among occupiers. Large increase of tenants’ activity was observed in the West and City Centre submarkets.
  • The market in year 2009 was dominated by small deals – size of average deal oscillated around 700 sq m. In Q1 2010 it has increased by almost 1,000 sq m. Quarterly growing share of renegotiations accounted for 36% of the total leasing activity. The tenants’ interest in pre-let agreements that this quarter diminished to only 8%.
  • The largest leasing transactions occurred in the West and Upper South subzones including renegotiation of lease agreement by Orange in Renaissance Tower (17,400 sq m), new deal concluded by PZU for office space in Empark Sirius (12,500 sq m) and HP renegotiations in University Business Centre (10,300 sq m).

 

Warsaw Research Forum (WRF) – The group consists of real estate market research and analysis specialists from six companies: CB Richard Ellis, Cushman & Wakefield, DTZ, Jones Lang LaSalle, King Sturge and Colliers International, who are committed to unifying basic occupational office market data.