Is Poland’s office market heading towards oversupply?
The changing structure of demand for offices, and the increasing amount of space aimed at subtenants, raises the question of whether the office sector in Poland is facing the imminent prospect of oversupply. According to JLL data, the first three quarters of 2020 saw demand on the Warsaw and regional office markets decrease by 35 percent and 11 percent respectively. On top of this, a significant share of leases signed this year was claimed by contract renewals, which between the second and third quarter of 2020 accounted for 45 percent of demand in the largest office markets in Poland (compared to 33 percent in 2019). After the outbreak of the pandemic, the sublease offer started to grow quite quickly and stood at 240,000 sqm in November. So should we expect oversupply in the office sector in Poland? “Tenants reacted to the developing pandemic fairly quickly, temporarily withholding expansion or relocation plans. At the same time, since the beginning of the…
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