Office market in Warsaw – Q1 2021
JLL is pleased to present the latest report analysing office market in Warsaw in Q1 2021
The first three months of 2021 have again proved challenging for both the economy and the real estate market, including the office sector. Following the announcement of another lockdown in March this year, the vast majority of companies have once more adopted a remote working mode, while others have been forced to significantly increase health and safety measures against COVID 19.
As a result of further unexpected changes, office market dynamics have altered considerably. This is reflected both in the activity of developers (420,000 m² are currently being built the lowest volume of space under construction in 11 years) and in the lowest demand for office space on a quarterly basis since 2010. In addition, the vacancy rate, which was expected to rise even before the pandemic, hit 11.4%, the highest rate since 2017. However, the limited pipeline for the next few years may positively offset the vacancy rate growth.
A trend that emerged both during the global financial crisis of 2008-2009 and the ongoing pandemic is the increased supply of space for subleases as a result of tenants’ attempts to reduce their office size. The last few months, however, have seen a slight slowdown in the growth of such space.