Prime office rents in Warsaw are increasing in line with the so far recession proof Polish economy, vacancy rates have dropped and commercial space in the city centre now costs around €22 to €25 per square meter per month, with some A+ developments quoting rents even higher than this. The best locations outside the centre are available at €15 to €15.50 per square meter per month.
Over 123,000 square meters were leased in the second quarter of 2011, that combined with the demand in the first quarter adds up to over 321,000 square meters. Compare that with 220,000 square meters for the same period last year.
City Centre, Upper South (Mokotów) and South West locations still remain the most popular sub-markets in Warsaw in terms of occupier activity. Supply levels are moderate, only four major projects were completed in the first half of 2011, totalling 28,350 square meters – Pa?ac M?odziejowskiego, Mokotowska Square, Rac?awicka Point and Platinium Business Park IV. Modern office space vacancy rates at the end of the second quarter were approx. 6.2% and the vacancy rate is expected to decrease further due to the relatively low number of new completions.
Regional markets were led by Kraków and Pozna?, followed by Wroclaw and Gdansk tri-city, major lease transactions included Shell with a renegotiation of 16,100 square meters in Kraków Business Park and Allegro who took 14,600 square meters in Pixel, Pozna?.
A new support program for shared service centres, business process outsourcing and research & development centres was approved by the government in early July, that’s likely to boost new investments in the commercial property sector.
Details from sector report from Jones Lang LaSalle as reported by Property Wire, see the full article in full.
Many thanks to Ulf for photograph showing construction of the Zebra Tower in Warsaw.