In 2023, total office leasing activity dampened across Warsaw compared with 2022, posting a 13% year-on-year decrease. Although companies increasingly chose to move as relocations accounted for 53% of all deals, those based in well-located class A office buildings whose landlords and property managers are committed to providing modern building solutions and enhancing a user experience clearly preferred to stay on. Neopark and Nowogrodzka Square – both in the portfolio of a French Asset Management Company – are prime examples of this as they saw most of their tenants renew their leases. Global real estate services firm Cushman & Wakefield is both a leasing agent and a property manager for the two projects.
As new office supply levels remain low and tenants continue to target prime offices to optimise service charges and meet ESG requirements, the quality of management for standing stock is increasing in importance. Office buildings in attractive locations such as Nowogrodzka Square, located in the Central Business District (CBD), and Neopark, situated in the growing, mixed-use district of Służewiec with access to services and retail stores, are valued and sought after by tenants. However, what makes them attractive above all is modernity, space and cost efficiency, as well as increasingly advanced ESG solutions and their ability to respond to new needs quickly,”
explains Paweł Kłosiński, Associate, Co-Head of Leasing Services Warsaw, Cushman & Wakefield.
Employee health and wellbeing and optimisation of service charges are top of mind for tenants
Neopark’s key advantages are, without a doubt, its location in the office and residential part of Mokotów and proximity to the S8 expressway, as well as its BREEAM certificate with an Excellent rating awarded for its sustainable solutions and focus on user health and wellbeing,”
adds Iwona Laskowska, Negotiator, Leasing Services Warsaw, Cushman & Wakefield.
Warsaw’s office vacancy rate has been on a downward trend since the beginning of 2022. In 2023, total office leasing activity amounted to just under 750,000 sq m – slightly above the average for the last five years. This was a result of, among other things, a trend towards optimising and downsizing office footprints and a focus on reducing service charges. The subdued development activity is expected to further reduce office availability in 2024. Key drivers behind decisions to renew leases include efficient property management bringing meaningful savings and other benefits we can offer such as very low service charges that come, for example, with the freehold of the land on which Nowogrodzka Square sits,”
comments Iwona Laskowska.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more. For additional information, visit www.cushmanwakefield.com.