At the end of the third quarter of 2022, Warsaw’s total office stock amounted to 6.34 million sq m, following the completion of close to 100,000 sq m, including Varso Tower, the tallest office building in the European Union. In addition, around 150,000 sq m of office space was under construction.
Vacancy rates fall and will continue to trend downwards for at least the next two years
Warsaw’s vacancy rate remained on a downward trajectory throughout the first half of 2022. In July-September 2022, it stood at 12.1%, up by 0.2 pp quarter-on-quarter but down by 0.3 pp year-on-year. The growth in vacancies in the three months to September was driven by the completion of new large developments where a relatively high proportion of space remains vacant,
comments Katarzyna Lipka, Head of Consulting & Research, Cushman & Wakefield.
Occupier activity on the rise despite market uncertainty…
Robust take-up was powered by both the improving rental market and the build-up of transactions closed by large tenants from the financial, business services and IT sectors as 562 deals were finalised in the first three quarters of 2022, representing a year-on-year increase of close to 43%,
adds Jan Szulborski, Senior Consultant, Consulting & Research, Cushman & Wakefield.
… and rental growth
Cushman & Wakefield: What’s next?
Office demand is expected to remain strong due to the upcoming renegotiations of leases made in 2018 and 2019. The downside risk to this scenario is that occupier sentiment around investment plans may change or worsen in the coming quarters due to geopolitical uncertainty, rising office fit-out costs and the expected shrinking office availability due to a lack of new supply,
concludes Katarzyna Lipka.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 50,000 employees in 400 offices and 60 countries. In 2021, the firm had revenue of $9.4 billion across core services of property, facilities and project management, leasing, capital markets, and valuation and other services. To learn more, visit www.cushmanwakefield.com