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Richard Ellis today issued its quarterly Warsaw Office Market View 2Q2008 report, covering all aspect of office market in Warsaw, including demand, supply, rents, yields and trends.
The demand for modern office space in Warsaw remains relatively high - 244,400 sq m was leased in the first half of 2008. Most of the space was leased in Non-Central locations. A record lease transaction was concluded in Lipowy Office Park, where Bank Pekao SA pre-leased 39,000 sq m.
On the supply side, 141,400 sq m of modern office space was delivered to the market in 2008, bringing total stock to 2.84 million sq m. A majority of the delivered stock was developed in Non-Central locations and only 11,300 sq m appeared in City Centre.
‘Despite a large number of planned new projects this year (14 in total), we expect the market to absorb the new space. Business conditions in Poland remain favourable, although a slight slowdown of economy can be observed.’ – said Joanna Mroczek, Director of Research and Consultancy department at CB Richard Ellis.
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Prime office headline rents in Central locations levelled off at EUR 32 - 35/sq m/month. In Non-Central areas the rental levels stabilised at EUR 16–17/sq m/month.
The investment market is still restrained by the global financial crisis and the volume of transactions is lower than in previous years. Warsaw office yields are at 5.75% – 6.25%.
CB Richard Ellis Issues Warsaw Office Market Report (.pdf)
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