{"id":907,"date":"2019-01-31T08:22:42","date_gmt":"2019-01-31T08:22:42","guid":{"rendered":"http:\/\/ceo.com.pl\/en\/?p=907"},"modified":"2019-01-31T08:22:42","modified_gmt":"2019-01-31T08:22:42","slug":"summary-of-the-warsaw-office-market-in-2018","status":"publish","type":"post","link":"https:\/\/ceo.com.pl\/en\/summary-of-the-warsaw-office-market-in-2018\/","title":{"rendered":"Summary of the Warsaw office market in 2018"},"content":{"rendered":"<div class=\"hentry single links--red-green\">\n<div class=\"release-object-content\">\n<ul>\n<li>In 2018, investment volume on the Warsaw office market hit a record high of EUR 1.7 billion across 28 transactions;<\/li>\n<li>Office yields below 5%, the lowest on record;<\/li>\n<li>Occupier activity remains strong in Warsaw with 858,000 sq m transacted, an all-time high;<\/li>\n<li>New office supply totalled only 233,000 sq m delivered across 20 new projects;<\/li>\n<li>Net absorption was down by 8% on 2017\u2019s record level;<\/li>\n<li>In 2018, coworking providers opened a total of 37,600 sq m of coworking space in 15 facilities across Warsaw.<\/li>\n<\/ul>\n<p><strong>Global real estate services firm Cushman &amp; Wakefield presents a summary of 2018 on the Warsaw office market.<\/strong><\/p>\n<p><em>\u201cInvestment activity hit a record high on the Polish commercial real estate market in 2018, surpassing the EUR 7 billion mark. The office market also set new highs with its investment volume at EUR 2.6 billion, accounting for 37% of 2018\u2019s total and reflecting a growth of 88% year-on-year.<\/em><\/p>\n<p><em>The Warsaw office market boasted the strongest investment activity totalling EUR 1.7 billion with 28 transactions closed in 2018. Other Polish cities saw 13 deals for a total of EUR 850 million.<\/em><\/p>\n<p><em>2018 was also a record-breaking year in terms of office yields which in Warsaw broke the barrier of 5.0%, standing at 4.75%, an all-time low in the history of the Polish commercial real estate investment market. Of all regional cities, Krakow saw the highest values with prime office yields at 5.75%.<\/em><\/p>\n<p><em>Given the strong performance of the Polish economy and availability of investment product, we expect the office investment market to continue its bull run in 2019 with prime office yields likely to compress further for Class A office buildings with long-term leases,\u201d<\/em>\u00a0says\u00a0<strong>Micha\u0142 Wachowicz, Consultant, Capital Markets, Cushman &amp; Wakefield.<\/strong><\/p>\n<p>At the end of 2018, Warsaw\u2019s total office stock stood at 5.46 million sq m. Despite last year\u2019s supply gap, which is expected to carry into 2019, new supply totalled 232,700 sq m delivered across 20 office projects, down by 70,000 sq m on the five-year average for 2012\u20132017. Last year\u2019s largest completions on the Warsaw market included Proximo II (19,950 sq m), Equator IV (19,200 sq m) and Centrum Biurowe Koneser (17,300 sq m).<\/p>\n<p><em>\u201cAt year-end 2018, there was nearly 730,000 sq m of office space under construction. Of that total, more than 82% was underway in central locations. New office supply is, however, expected to be relatively low at 230,000 sq m in the next twelve months. In addition, supply forecasts for 2020 have been revised downwards as delivery of several large-scale projects has been postponed to 2021<\/em>,\u201d said\u00a0<strong>report author Jan Szulborski, Consultant, Consulting and Research, Cushman &amp; Wakefield.<\/strong><\/p>\n<p>Office take-up hit a record high in 2018 with 858,000 sq m transacted, which represented a 4% increase on 2017. Key lease transactions included Deloitte\u2019s 22,100 sq m renegotiation at Q22, WeWork\u2019s 14,200 sq m deal in Mennica Legacy Tower\u2019s western building and Cambridge Innovation Center\u2019s lease at Varso II.<\/p>\n<p>At the end of 2018, Warsaw\u2019s vacancy rate stood at 8.7%, down by 2.9 pp year-on-year, the lowest since 2012. Robust occupier activity was reflected in high office absorption which hit 345,000 sq m in 2018, only slightly below the level posted in the peak year 2017.<\/p>\n<p>Despite the low vacancy rate in the fourth quarter of 2018, prime headline rents remained flat at EUR 23.5\u201323.75\/sq m\/month in Warsaw\u2019s Central Business District.<\/p>\n<figure id=\"attachment_84\" aria-describedby=\"caption-attachment-84\" style=\"width: 200px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-84\" src=\"https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2017\/02\/Krzysztof-Misiak-Partner-Head-of-Regional-Cities-Cushman-Wakefield-200x300.jpg\" alt=\"Krzysztof Misiak, Partner, Head of Regional Cities, Cushman &amp; Wakefield\" width=\"200\" height=\"300\" title=\"\" srcset=\"https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2017\/02\/Krzysztof-Misiak-Partner-Head-of-Regional-Cities-Cushman-Wakefield-200x300.jpg 200w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2017\/02\/Krzysztof-Misiak-Partner-Head-of-Regional-Cities-Cushman-Wakefield-768x1152.jpg 768w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2017\/02\/Krzysztof-Misiak-Partner-Head-of-Regional-Cities-Cushman-Wakefield-683x1024.jpg 683w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2017\/02\/Krzysztof-Misiak-Partner-Head-of-Regional-Cities-Cushman-Wakefield-696x1044.jpg 696w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2017\/02\/Krzysztof-Misiak-Partner-Head-of-Regional-Cities-Cushman-Wakefield-1068x1602.jpg 1068w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2017\/02\/Krzysztof-Misiak-Partner-Head-of-Regional-Cities-Cushman-Wakefield-280x420.jpg 280w\" sizes=\"auto, (max-width: 200px) 100vw, 200px\" \/><figcaption id=\"caption-attachment-84\" class=\"wp-caption-text\">Krzysztof Misiak, Partner, Head of Regional Cities, Cushman &amp; Wakefield<\/figcaption><\/figure>\n<p><em>\u201cThe Warsaw office market witnessed several major and positive developments in 2018. Gross take-up was exceptionally high at around 858,000 sq m, while absorption amounted to 345,000 sq m and was 50% higher than the new supply at the end of 2018. This pushed the city\u2019s vacancy rate down to a historic low of 8.7%. In addition, developers enjoy favourable conditions and are driven to break ground on new projects by the growing activity of coworking operators, a large share of expansions in office take-up and a rising number of firms gaining a foothold in Warsaw. A stable office supply growth is a critical factor for the Warsaw market. A market where tenants have choice will grow at a rapid pace as availability of office space has a positive, tangible effect on demand. Given the current low vacancy rate, a paucity of offices which could begin to cause concern is likely to result in weaker leasing activity in the long term,\u201d<\/em>\u00a0said\u00a0<strong>Krzysztof Misiak, Partner, Head of Office Agency, Cushman &amp; Wakefield.<\/strong><\/p>\n<\/div>\n<\/div>\n<div class=\"push--bottom\">\n<div class=\"cf delta color-green\"><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In 2018, investment volume on the Warsaw office market hit a record high of EUR 1.7 billion across 28 transactions; Office yields below 5%, the lowest on record; Occupier activity remains strong in Warsaw with 858,000 sq m transacted, an all-time high; New office supply totalled only 233,000 sq m delivered across 20 new projects; [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":84,"comment_status":"open","ping_status":"open","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":[2878,151,2690,290,70,69,2688,82],"class_list":["post-907","post","type-post","status-publish","format-standard","has-post-thumbnail","category-real-estate","tag-coworking","tag-cushman-wakefield","tag-gap","tag-jan-szulborski","tag-krakow","tag-krzysztof-misiak","tag-leasing","tag-warsaw"],"jetpack_publicize_connections":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/907","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=907"}],"version-history":[{"count":0,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/907\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media\/84"}],"wp:attachment":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media?parent=907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/categories?post=907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/tags?post=907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}