Warsaw office market. The demand is not weakening

Experts from Avison Young point to moderate but stable development activity on the office market. By the end of 2025, it is planned to be commissioned by over 130,000 sq m of a new office space. After 2027, however, few new investments were announced, which suggests a decrease in dynamics in this area. The trend of modernization and changes in the functions of older buildings that can become an alternative to new office space is increasingly visible.

Demand for office space in Warsaw

The Warsaw office market remains active, especially in the center and the central business area (CBD), which generated over 60 percent. total lease volume. The vacancy rate is 7.4 percent. in central zones and 13 percent Apart from them, and the total area of ​​unnecessary offices is nearly 660,000 sq m. The largest demand for office space was generated by the business services sector, which was responsible for 13 percent. rented space. The banking, insurance and investment industry and the production sector occupied 10 percent in turn.

Warsaw office market – rental conditions

According to experts from Avison Young, new lease agreements and let us be responsible for 49 percent. total activity of tenants.

-The next 2-3 years can bring several large pre-list transactions. Due to a limited number of new projects in speculative mode, pre-list can become the main way to obtain a surface that meets the expectations of tenants in terms of location, system and standard-comments Robert Pastuszka, Director, and Office Agency.

Revenues in central locations ranged from 22 to 28 EUR/sq m/mourn, and in locations outside the center – from 16 to 19.5 EUR/sq m/mourn. The rates for surfaces in the best locations, on the highest floors, exceed EUR 30/sq m/mourn. The operational fees are on average about PLN 27/sq m/mourn.

Changes at the Warsaw office market

The current market conditions are conducive to the Lessor, which results in the conclusion of long -term contracts – seven -year contracts become a new standard.

According to Agnieszka Bykowska, Research analist at Avison Young, after years of dominance of tenants, the balance of power on the market changes, and the limited supply of surfaces exerts pressure on the increase in rent rates. For large companies, it becomes crucial to start rental negotiations long before the end of current contracts. In the long term, you can expect an increase in operational fees and a larger participation of renegotia in the annual volume of transactions.