PINK releases data on the office market in Warsaw for Q3 2022

At the end of September 2022, total modern office stock in Warsaw accounted for 6,343,000 sq m.

In Q3 2022, approximately 99,100 sq m of modern office space was delivered to the capital city market in three projects, i.e. Varso Tower (63,800 sq m) located in the Central Business District, P180 (32,000 sq m) in Mokotów and Poleczki 32 (3,300 sq m) in Puławska corridor. When added to the eight office schemes completed in Warsaw in the first half of 2022, total new supply introduced to the market since the beginning of 2022 amounted to 228,100 sq m.

At the end of Q3 2022, the vacancy rate in Warsaw reached 12.1% (up 0.2 pp. compared to the previous quarter and decrease by 0.3 pp. in relation to the comparable period in 2021). Availability of office space equalled 770,200 sq m. In central zones the vacancy rate dropped to 11.1%, while outside the city centre it reached 13.0%.

 In the first three quarters of 2022, demand for modern office space exceeded 608,000 sq m, including 128,700 sq m in Q3 2022. The most popular areas of tenant’s interest were the City Centre, CBD and Mokotów zones.

Between July and September 2022, the highest share in total take-up volume was attributed to new deals (including pre-lets transactions) – 48%, and to renegotiations – 45.5%. Expansions equalled to 5% of the quarterly office take-up and owner-occupier deals to 1.5%.

 The largest transactions of the Q3 2022 were renegotiations – an agreement of 11,300 sq m by confidential tenant from financial sector in Konstruktorska Business Center, 6,500 sq m renegotiation signed by a confidential tenant in Warsaw Spire C and renewal of lease contract and expansion for a total of 4,500 sq m by Panattoni in Warsaw Spire Tower.