International advisory firm JLL summarizes the situation on the office market in Warsaw and other biggest office markets across Poland[1] at the end of Q3 2015. Furthermore, the company provides forecasts for the sector's further development in the upcoming months.Anna Młyniec, Head of Office Agency and Tenant Representation at JLL, says: "Lease agreements for over 1 million sq m were signed in Poland in the period between the beginning of 2015 and the end of the third quarter. So far, this year's result is comparable to the record-breaking demand recorded in 2014 with 2015 looking set to have the highest tenant activity in Polish office market history. Since the beginning of the year, 612,800 sq m of office space were leased in Warsaw along with 472,200 sq m on the country's major regional markets. The services sector including consulting, law, media and HR firms, dominates the office market in Warsaw accounting for 27% of demand followed by IT and telecom companies with 22%. The business services sector maintains its domination in regional cities as it accounted for approximately 50% of take-up registered in 2015 on major office markets outside Warsaw."Between Q1 and Q3 2015, the office take-up in Warsaw reached 612,800 sq m (including 222,600 sq m in Q3 alone). Mokotów led the way, with 174,700 sq m leased but the largest deals were for properties in the City Centre Fringe, which saw an exceptional burst of activity (155,500 sq m let this year). The city's central districts[2] accounted for more than 36% of total leasing volume. The most notable leasing transactions concluded in Q3 were an owner-occupier deal in Powiśle Park for 11,500 sq m, the renewal of 11,000 sq m by an international bank in Focus, a 9,800 sq m renewal by Orange in Renaissance Plaza, a 9,200 sq m renewal and expansion by Gaz-System in Cristal Park and a 7,000 sq m new lease by AstraZeneca in Postępu 14."We expect the positive sentiment in the leasing market to continue to the end of 2015 and into 2016," adds Anna Młyniec. Office take-up in eight major office markets in Poland (outside Warsaw) totalled approximately 190,000 sq m in Q3 (up 27% q-o-q and 66% y-o-y) and 472,200 sq m since the beginning of the year, which is already 6% above the strong figures registered for the whole of 2014.Mateusz Polkowski, Associate Director, Research and Consulting at JLL, comments: "The good market situation and tenant activity were recorded on all of the analyzed regional markets. Kraków, the Tri-City and Wrocław put in particularly strong performances with a 27%, 17% and 16% share respectively of all demand this year. Furthermore, Poznań improved its results with 56,500 sq m leased since the beginning of the year - as compared to 18,800 sq m in the whole of 2014. We expect that the high take-up on major office markets outside Warsaw will also be maintained in Q4." Among the most notable transactions closed in Q3 outside Warsaw are: two deals for a total of over 24,000 sq m by BZ WBK in Poznań Financial Centre and Business Garden Poznań; a 15,000 sq m pre-let by State Street in Alchemia II; and a 10,000 sq m deal by a confidential tenant in Katowice Business Point. Supply – 1.3 million sq m under developmentIn Q1–Q3 2015, approximately 238,300 sq m of modern office space entered the market in Warsaw, almost 91,400 sq m of which came in Q3 alone. The largest Q3 openings included: Royal Wilanów (29,800 sq m), Domaniewska Office Hub (27,000 sq m) and Multimedialny Dom Plusa (22,700 sq m). In Q3, 39,200 sq m of new office space came onto the market outside of Warsaw, of which 55% was delivered in Wrocław in a single office building: Dominikański B (21,600 sq m)."Developers have answered the tenants' huge interest in office space. Approximately 1.3 million sq m of modern office space is currently under construction. Warsaw accounts for 612,600 sq m while 680,000 sq m is being developed across major Polish cities. Kraków and Wrocław are the undisputed leaders of office stock under construction outside Warsaw," enumerates Mateusz Polkowski.A drop in the vacancy rateQ3 saw a slight drop in the vacancy rate, which stood at 12.9% (16.4% in the CBD, 12.4% in the City Centre Fringe and 12.5% in Non-Central locations). Outside Warsaw, the lowest vacancy rate was recorded in Kraków (4.1%) and Łódź (7.0%), and the highest in Poznań (19.3%). The vacancy rate in Poland is likely to grow due to new office projects entering the market (up to 178,000 sq m of stock is expected to be delivered during Q4 outside Warsaw). RentPrime headline rents in Warsaw remained stable over the course of Q3, with rents in Warsaw City Centre ranging between €21 and €23.5 / sq m / month and non-central locations commanding rents of €11-18 / sq m / month. Currently, prime headline rents range between €11 to €12 / sq m / month in Lublin and €14 to €14.5 / sq m / month in Poznań and Wrocław (13,8 – 14,5 euro in Kraków).[1] Kraków, Wrocław, Tri-City, Katowice, Poznań, Łódź, Szczecin, Lublin[2] CBD and City Centre Fringe