{"id":4784,"date":"2025-01-30T17:26:24","date_gmt":"2025-01-30T17:26:24","guid":{"rendered":"https:\/\/ceo.com.pl\/en\/?p=4784"},"modified":"2025-01-30T17:26:24","modified_gmt":"2025-01-30T17:26:24","slug":"in-2024-office-development-activity-in-warsaw-was-focused-on-the-central-areas-14530","status":"publish","type":"post","link":"https:\/\/ceo.com.pl\/en\/in-2024-office-development-activity-in-warsaw-was-focused-on-the-central-areas-14530\/","title":{"rendered":"In 2024, office development activity in Warsaw was focused on the central areas"},"content":{"rendered":"<p><strong>The year 2024 saw a period of stabilisation in the Warsaw office market, with an increasing concentration of new supply in the city centre and a high proportion of lease renegotiations. Despite marginal annual increases, the vacancy rate remains on a downward trajectory. Key market drivers in 2025 will include the limited availability of large office spaces, the growing importance of ESG criteria, and the continued expansion of flexible office solutions. AXI IMMO, Poland\u2019s largest advisory firm on the commercial real estate market, presents its latest market report, Office Market in Warsaw 2024.<\/strong><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/ceo.com.pl\/en\/in-2024-office-development-activity-in-warsaw-was-focused-on-the-central-areas-14530\/#Stable_supply_and_concentration_in_prime_locations\" >Stable supply and concentration in prime locations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/ceo.com.pl\/en\/in-2024-office-development-activity-in-warsaw-was-focused-on-the-central-areas-14530\/#Vacancy_rate_trends_downwards\" >Vacancy rate trends downwards<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/ceo.com.pl\/en\/in-2024-office-development-activity-in-warsaw-was-focused-on-the-central-areas-14530\/#Take-up_%E2%80%93_lease_renegotiations_dominate_as_tenant_activity_stabilises\" >Take-up \u2013 lease renegotiations dominate as tenant activity stabilises<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/ceo.com.pl\/en\/in-2024-office-development-activity-in-warsaw-was-focused-on-the-central-areas-14530\/#Stable_rental_levels_rising_service_charges\" >Stable rental levels, rising service charges<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/ceo.com.pl\/en\/in-2024-office-development-activity-in-warsaw-was-focused-on-the-central-areas-14530\/#2025_Outlook_%E2%80%93_Supply_shortages_and_the_growth_of_flexible_offices\" >2025 Outlook \u2013 Supply shortages and the growth of flexible offices<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Stable_supply_and_concentration_in_prime_locations\"><\/span>Stable supply and concentration in prime locations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Warsaw\u2019s modern office stock expanded by an additional 100,000 sq m in 2024, reaching a total of 6.29 million sq m by the end of the year. Key office completions included The Form (29,400 sq m, Lincoln Property), Lixa (Yareal) Building D (9,300 sq m) and E (16,900 sq m), Saski Crescent (15,500 sq m, CA Immo), and the first phase of the Vibe complex (15,000 sq m, Ghelamco). Development activity focused on the city centre, particularly around Rondo Daszy\u0144skiego, a key hotspot for office investment. A\u00a0significant 83% of new supply was delivered to central districts, underlining growing occupier demand for prime locations.<\/p>\n<p><strong>Emilia Trofimiuk, Research Manager, Research Department, AXI IMMO,<\/strong> commented: <em>&#8220;Despite new project deliveries, the overall office stock remains stable as older, less efficient office properties are being repurposed, often for residential use. Additionally, over 230,000 sq m of office space is currently under construction, with 86% in central Warsaw. Major projects include The Bridge (47,000 sq m, Ghelamco), Upper One (35,900 sq m, Strabag), the redeveloped V Tower (32,700 sq m, Cornerstone), Office House (27,800 sq m, Echo Investment), Studio A (26,600 sq m, Skanska), and Skyliner II (24,000 sq m, Karimpol).&#8221;<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Vacancy_rate_trends_downwards\"><\/span>Vacancy rate trends downwards<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>At the end of 2024, Warsaw\u2019s office vacancy rate stood at 10.6%, reflecting a slight year-on-year increase of 0.2 percentage points. However, quarter-on-quarter, the market remained downward (-0.1 p.p.). The highest vacancy levels were recorded in the S\u0142u\u017cewiec business district (19.7%), which continues to struggle with an oversupply of outdated office stock. By contrast, the central zones maintained a\u00a0significantly lower vacancy rate of 8.8%.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Take-up_%E2%80%93_lease_renegotiations_dominate_as_tenant_activity_stabilises\"><\/span>Take-up \u2013 lease renegotiations dominate as tenant activity stabilises<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Total office leasing activity in Warsaw in 2024 reached 740,000 sq m, marking a marginal 1% decrease year-on-year. Lease renegotiations were the predominant transaction type, accounting for 46% of all transactions (+3\u00a0p.p. YoY). Net take-up, including new leases and expansions, declined by 6% YoY (400,000 sq m), reflecting limited availability of large office spaces and a growing preference for subleases as a cost-optimisation strategy. The largest transaction of 2024 was a pre-let of 24,500 sq m by Santander Bank in The Bridge. Other major deals, averaging between 13,000-14,000 sq m, included lease renewals and renegotiations at Atrium Garden, Varso Place 2, T-Mobile Office Park, and Domaniewska Office Hub. The\u00a0most active sectors among tenants were finance, manufacturing, business services, and IT.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Stable_rental_levels_rising_service_charges\"><\/span>Stable rental levels, rising service charges<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Bartosz Oleksak, Associate Director, Office Agency, AXI IMMO<\/strong>, stated: <em>&#8220;In 2024, headline rents in prime office buildings in central Warsaw ranged from EUR 19.00 to EUR 26.50 per sq m per month, with premium spaces exceeding EUR 30.00 per sq m per month. In non-central locations, rental rates started at approximately EUR 9.00 per sq m per month. Despite inflationary pressures and construction costs, rental levels remained stable year-on-year. However, service charges increased, ranging from PLN 12.00 to PLN 45.00 per sq m per month, driven by rising operational expenses and ongoing building modernisation investments.\u201d<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"2025_Outlook_%E2%80%93_Supply_shortages_and_the_growth_of_flexible_offices\"><\/span>2025 Outlook \u2013 Supply shortages and the growth of flexible offices<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Jakub Potocki, Associate Director, Office Agency, AXI IMMO,<\/strong> explains: <em>&#8220;In 2025, development activity in Warsaw is expected to concentrate on central locations, particularly around Rondo Daszy\u0144skiego, where around 140,000 sq m of new office space is scheduled for completion. Market trends will likely focus on the limited availability of large office units, the increasing popularity of flexible office solutions, the ongoing optimization of occupied spaces, and the renovation of older buildings to meet ESG standards. Occupiers are anticipated to place greater emphasis on office design and quality, while landlords will adjust their offerings to accommodate the evolving needs of tenants.\u201d<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The year 2024 saw a period of stabilisation in the Warsaw office market, with an increasing concentration of new supply in the city centre and a high proportion of lease renegotiations. Despite marginal annual increases, the vacancy rate remains on a downward trajectory. Key market drivers in 2025 will include the limited availability of large [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4240,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[8],"tags":[128,1795,4447,2783,20,2581,3121,397,1796,3054,2688,2980,150,3228,2820,82],"class_list":["post-4784","post","type-post","status-publish","format-standard","has-post-thumbnail","category-real-estate","tag-axi-immo","tag-bartosz-oleksak","tag-ca-immo","tag-contrast","tag-echo-investment","tag-emilia-trofimiuk","tag-esg","tag-ghelamco","tag-jakub-potocki","tag-karimpol","tag-leasing","tag-santander","tag-skanska","tag-strabag","tag-t-mobile","tag-warsaw"],"jetpack_publicize_connections":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/4784","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/comments?post=4784"}],"version-history":[{"count":0,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/4784\/revisions"}],"wp:attachment":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media?parent=4784"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/categories?post=4784"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/tags?post=4784"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}