New research from Colliers International shows that Warsaw's office vacancy has plummeted from 14% to 8.5% in the last 2.5 years, with only 500,000 m2 of corporate space delivered to the market in this time.
Despite there being an estimated 15% extra office space currently under construction, the Colliers data suggests there is a supply gap to the market. In the past 30 months, Warsaw’s central zone has added only 180,000 m2 of new premises, with demand in this period exceeded supply by more than five times.
'Trends worth noting include consolidation in the financial sector as well as growing activity among coworking operators,' said Olga Drela, senior analyst, research and consultancy services, Colliers International.
'Banks and insurance companies are centralising their headquarters, moving to prestigious developments in the centre of the capital – mBank to Mennica Legacy Tower, Getin Noble Bank to The Warsaw HUB C and Warta to Warsaw Unit,' Drela noted.
Over the past 2.5 years, the serviced office and coworking sector in Warsaw has expanded. Transactions concluded by flexible space operators exceeded 100,000 m2, Colliers said, with most locating their modern, designer offices in the city centre.
Currently, the greatest concentration of offices is the central business area (CBA), where most skyscrapers are being built, including Varso Tower, set to be the highest office building in the EU. Monthly rents exceed €20 per m2 in this zone, according to the data. The second highest concentration of offices lies west of the city, largely in business park developments, around Aleje Jerozolimskie and Polczynska and Zwirki i Wigury streets.
The greatest amount of new supply - some 1,450,400 m2 - is concentrated in Mokotów, where lower monthly rents (€10.5-€15 per m2) and additional financial incentives for tenants have increased demand.
The north, just like the south of the capital, is mainly residential, while Warsaw east of the Vistula is gradually changing into an open and business-friendly space, Colliers reported. Here, pipeline projects such as Google Campus, and other key brownfield developments, are attracting further tenants.