Warsaw office market report Q4 2021

PINK has published figures on office market in Warsaw for Q4 2021.

- At the end of Q4 2021 total modern office stock in Warsaw accounted for 6,150,900 sqm.

- In Q4 2021, more than 31,500 sqm of modern office space was delivered to the capital city market in three projects, namely: Central Point (18,000 sqm), first phase of Fabryka PZO (12,100 sqm) and EC Powiśle D3 (1,500 sqm). Office stock in Warsaw in 2021 was expanded by 16 office buildings with total area of almost 325,000 sqm.

- At the end of Q4 2021, the vacancy rate in Warsaw reached 12.7% (which means growth by 0.2 pp comparing with the previous quarter and increase by 2.8 pp. in relation to the Q4 2020). Availability of office space equalled 778,400 sqm., in central zones the vacancy rate was 12.9%, while outside the city centre it reached 12.4%.

- In Q1-Q4 2021, demand for modern office space reached 646,500 sqm, with 250,800 sq m signed in Q4 2021. The most popular areas of tenants’ interest during last quarter were City Centre zone, followed by Central Business District and Mokotów office zones. Throughout the year of 2021, the highest share in total take-up volume was attributed to new deals – 49% (including pre-lets transactions), renewals of current lease agreements attributed to 45% while expansions equalled to 6%.

- The largest transactions of Q4 2021 were: renegotiation and expansion, signed by AstraZeneca in Postępu 14 building (20,800 sqm), prelet agreement by confidential tenant from IT sector in Varso Tower (15,000 sqm) and extension of agreement by GDDKiA in Green Corner B (12,800 sqm)

The data is sourced from advisory companies from the commercial real estate sector (BNP Paribas Real Estate, CBRE, Colliers, Cushman&Wakefield, JLL, Knight Frank, Newmark Polska, Savills) and includes information on modern office stock, new completions, take-up volumes and vacancy rates.