The table below, which was prepared by the Warsaw Research Forum, provides a summary of the market at the end of the 3rd quarter of 2008.
Warsaw Office Market Q3 2008 Results
Main markets
|
Zone |
Stock |
Vacancy (sq m) |
Vacancy rate (%) |
Completions (sq m) |
Take-up (sq m) |
|
CC |
1,097,600 |
38,300 |
3.5% |
0 |
9,700 |
|
NC |
1,863,100 |
42,400 |
2.3% |
102,800 |
126,850 |
|
Total |
2,960,700 |
80,700 |
2.7% |
102,800 |
136,550 |
- Leasing activity levels (take-up) for modern office space in Warsaw in 2008 reached the level of 381,000 sq m, which is an increase of 9% compared to the first three quarters of 2007. The highest level of take-up was recorded in the Upper South zone, where a 49% of the leasing activity took place. Contracts for the renegotiations of lease agreements reached the level of 34,000 sq m, what accounted for 9% of all deals. Expansions of office premises totalled to 3% of the total take-up. The level of owner-occupied space was around 5%. Approx. 51% (195,300 sq m) of new lease agreements were signed as pre-lets.
- The largest lease agreement concluded for 8,000 sq m were signed in the SW zone (Saturn Media Holding in Blue Office) and in the US zone (pre-let of Bank Millennium in Polifony Office Center). Other lease agreements from that submarket include two significant pre-lets of buildings delivered to the market in the end of past quarter – ESTA II (6,100 sq m leased by ING Bank Slaski) and Luminar (5,500 sq m pre-let of BRE Bank). The largest deal in City Centre was signed by Skarbnica Narodowa in Atrium City project that is currently under construction (760 sq m).
- In the third quarter of 2008 eleven new buildings were delivered to the market (21 within the whole year 2008), offering 102,800 sq m of space in total. All of them are located outside the City Centre, what is also the reason for the Upper South submarket’s first rank in terms of total modern office supply in Warsaw. Six buildings were built in there (55,300 sq m in total) and two more in the South West zone (11,500 sq m). Those two submarkets still remain in the developers’ highest interest. The modern office supply of the North zone since quarters characterized by low investors’ activity increased of 34,000 sq m in two new projects. One of them is North Gate – the largest office building delivered to the market this quarter (29,900 sq m). Another one building was completed in the Lower South zone (2,100 sq m).
- The vacancy rate in the Warsaw market amounted to 2.7%, what indicates a 60 basic points increase in comparison to previous quarter. The highest vacancy rate was observed in CC-Core with 4.7%, the lowest one was recorded in the West zone with 0.3%. The North submarket experienced the strongest grow of vacancy rate by around 200 basic points. It was caused by delivery of new North Gate, which increased its total modern office space supply here by 40%.
Submarkets
|
Zone |
Stock |
Vacancy (sq m) |
Vacancy rate (%) |
Completions (sq m) |
Take-up (sq m) |
|
CC-Core |
466,600 |
22,000 |
4.7% |
0 |
6,600 |
|
CC-Fringe |
631,000 |
16,300 |
2.6% |
0 |
3,100 |
|
E (Praga North and South) |
131,000 |
2,100 |
1.6% |
0 |
2,000 |
|
LS (Pulawska St.) |
98,300 |
3,900 |
4.0% |
2,100 |
6,400 |
|
N (Zoliborz) |
121,800 |
3,100 |
2.5% |
33,900 |
24,700 |
|
SE (Wilanow i Sadyba) |
132,800 |
4,700 |
3.5% |
0 |
1,400 |
|
SW (Jerozolimskie and Zwirki i Wigury St.) |
459,600 |
10,800 |
2.4% |
11,500 |
24,900 |
|
US (Mokotow) |
682,300 |
17,000 |
2.5% |
55,300 |
66,900 |
|
W (Wola) |
237,200 |
700 |
0.3% |
0 |
400 |
|
Total |
2.960,600 |
80,600 |
2.7% |
102,800 |
136,400 |
Warsaw Research Forum (WRF) is a group that consists of real estate market research and analysis specialists from six companies: CB Richard Ellis (Ms. Joanna Mroczek), Cushman & Wakefield (Ms. Katarzyna Opalska), DTZ (Ms. Katarzyna Lipka), Jones Lang LaSalle (Mr. Mateusz Polkowski), King Sturge (Ms. Wioleta Wojtczak) and Colliers International (Ms. Zuzanna Baranowska), who are committed unifying basic occupational office market data.
Source: Warsaw Research Forum
