Office vacancy in Warsaw reaches 12.5 percent

PINK has published figures on the office market in Warsaw for Q3 2021. The data is sourced from advisory companies from the commercial real estate sector (BNP Paribas Real Estate, CBRE, Colliers, Cresa, Cushman&Wakefield, JLL, Knight Frank, Savills) and includes information on modern office stock, new completions, take-up volumes and vacancy rates.

At the end of Q3, 2021 total modern office stock in Warsaw accounted for 6,159,900 sqm.

In Q3 2021, approximately 67,600 sqm of modern office space was delivered to the capital city market in two projects, namely: Fabryka Norblina (buildings Galwan and Plater offering 39,000 sqm of modern office space to let) and Widok Towers (28,600 sqm). Both projects increased the modern office stock in central locations in Warsaw.

At the end of Q3 2021, the vacancy rate in Warsaw reached 12.5 percent (in par with the value recorded in the previous quarter and increase by 2.9 pp. in relation to the comparable period in 2020). Availability of office space equalled 767,800 sqm. In central zones, the vacancy rate was 13.2 percent, while outside the city centre it reached 11.9 percent.

In Q1-Q3 2021, demand for modern office space reached 398,100 sqm, with 149,300 sqm signed in Q3 2021. The most popular areas of tenants’ interest during the last quarter were the City Centre zone, followed by Central Business District and Mokotów office zones.

Between July and September 2021, the highest share in total take-up volume was attributed to new deals – 53.5 percent (including pre-lets transactions). Renewals of current lease agreements attributed to 42.0 percent while expansions equalled to 4.5 percent.

The largest transactions of Q3 2021 were three renegotiations, signed by: confidential tenant from the banking sector (over 13,900 sqm) in Atrium Garden, a confidential tenant from the banking sector (5,700 sqm) in Wiśniowy Business Park E, Nationale Nederlanden Usługi Finansowe (almost 5,100 sqm) in Hortus office building and prelease of CMS for 7,000 sqm in Varso Tower.