Office buildings are proliferating, i.e. the office market in Warsaw
Today’s Warsaw is one of the most attractive cities for investors in Europe, which is confirmed, among others, by the numbers regarding the office market. According to JLL estimates, over $ 2 billion was invested in this market in 2018. New offices in Warsaw are being created one after the other, and in terms of supply of office space the Polish capital has left Prague or Budapest behind. Currently, Warsaw is often the first choice for companies looking for headquarters in Central Europe, which is largely due to the quality and availability of offices.
Offices in Warsaw – market data
Facts and figures about the Warsaw office market are as follows (Cushman & Wakefield’s ‘Office market in Warsaw – Q1 2019’ report):
- Total office space resources are around 5.5 million square meters. The available space is just over 500,000 square meters.
- New supply of office space in 2019 is 243,000 square meters.
- The vacancy rate has fallen by 1.7 pp since 2018 and is 9.1%.
- The rental of an office in Warsaw costs EUR 23.75 per month per square meter (in prime locations). This means that an office with an area of 500 square meters in the Central Business Area costs an average of 11,875 euros per month. In non-central regions, the cost per square meter of office space drops to EUR 14.50 per month.
In addition, by 2021, 750,000 square meters of office space is to be commissioned in Warsaw, of which the multifunctional projects The Warsaw Hub and Varso Place, growing into the tallest building in the European Union, is the most noteworthy. Both facilities are very popular among tenants. You can submit an inquiry regarding space in these and other Warsaw office buildings today through Realko24. Search for the building you are interested in and fill out the form to contact the landlord without a broker.
Business moves to the Wola district
How is the Warsaw office market distributed on the city map? Until recently, the office part of the Polish capital focused mainly on Służewiec, popularly known as “Mordor”. Today, it is still the business center of Warsaw, but the burden is gradually shifted to Wola, where the highest and most modern office buildings in the city are being built. Wola is said to be the fastest growing business district in Poland (1). This is confirmed by buildings such as Warsaw Spire (100,000 square meters of usable space), The Warsaw Hub (75,000 square meters of office space) or the Spark complex, whose construction is to be completed in 2021.
– Wola has become a new business center of Warsaw, and further investments will only strengthen its position – says Jeroen van der Toolen, Managing Director CEE Ghelamco (2) quoted by Harvard Business Review. HBR writes about commercial spaces in Warsaw’s Wola: “Due to the availability of large floors and excellent location, these offices are particularly attractive for companies from the IT, financial, FMCG, and BPO / SSC sectors.” An example would be the Citi Service Center, which has leased nearly 19,000 square meters next to Rondo Daszyńskiego. This is a record transaction on the scale of the Warsaw office market.
Coworking offices in Warsaw
In the Polish capital – as in other countries around the world – flexible surfaces are gaining popularity. Coworking operators have reason to be satisfied – in 2018 they rented over 100,000 square meters of space in Warsaw and according to forecasts, the same number of new flexible space in the city will become available by the end of 2019 (3). Small operators dominate in Warsaw, who provide shared office space in various parts of the city, including the increasingly popular Praga Północ. In addition, WeWork has recently entered the coworking market in Warsaw, with plans to open more locations. Another international coworking operator, also operating in Warsaw, is Spaces, which offers flexible offices in an attractive location at Marszałkowska street.
Office market in Warsaw – summary
In terms of business, Warsaw is growing at a very fast pace, successfully attracting more companies and investors. About 5.5 million square meters of office space is increasingly class A space, reserved for tenants who value the highest standard. New investments in the office market should guarantee supply at an appropriate level in the coming years, and the growing segment of coworking offices will also provide space for smaller entrepreneurs interested in flexible contracts for a shorter period.
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- https://www.bankier.pl/wiadomosc/Wola-najszybciej-rozwijajaca-sie-biznesowa-dzielnica-w-Polsce-7524726.html
- https://www.hbrp.pl/b/czy-wola-stanie-sie-centrum-biznesowym-stolicy/16QYKP6KG
- http://www.egospodarka.pl/156359,Jak-bedzie-rozwijac-sie-rynek-biurowy-w-Warszawie,1,78,1.html
