Interest in leasing offices in Poland is growing. In the third quarter, both in Warsaw and on the regional markets, the demand for office space was the highest this year. In the regions, 2023 will close with a result similar to the record from 2019. 

At the corner of Pańska Street and Wronia Street in Warsaw, the construction of the underground part of the first phase of the mixed-use project Towarowa 22 is coming to an end. In addition to offices, the Office House building offers retail spaces and attractive green areas. This is a promise of a joint project by companies belonging to the Echo Investment Group and AFI Europe.

New office supply reached nearly 236,000 sqm in Poland’s key regional cities in Q1-Q3 2023, says Savills. Gross take-up for the same period amounted to over 531,000 sqm, an increase of 19% year-on-year.

Higher construction costs and the unfavourable economic situation in Europe are impacting the future development of new offices in the region, especially in capital cities like Prague, Bratislava, Budapest and Bucharest.

Studio A - Skanska’s latest investment in Warsaw - will contribute 26,600 sqm of office space to the local office market. The building is scheduled to be commissioned in 2025.

Cushman & Wakefield has summarized the third quarter of 2023 on the Polish office market. Office development activity continues to slow down both in Warsaw and in Poland’s regional city markets. Nominal leasing activity remains high in the largest regional cities, with Warsaw reporting a record number of leases.

Romanian developer One United Properties has signed a deal with German semiconductors maker Infineon Technologies for the development of a prime office building in northern Bucharest.  

The average office transaction in the first nine months of 2023 stood at 1,810 sqm, which is the highest average of the past four years and close to the level of 1,900 sqm recorded in 2019, according to Cushman & Wakefield data.

From January to the end of September 2023, the total demand for modern office space in Warsaw amounted to nearly 0.5 million sqm. Tenants often choose two contract options, i.e., they relocate to a new space or decide to renegotiate existing terms. The vacancy rate is decreasing, standing at 10.6% at the end of September 2023. On the supply side, developers delivered just over 20,000 sqm to the capital's office market in January-September 2023, indicating a supply gap period in Warsaw. Nevertheless, more than 240,000 sqm is under construction, most of which will be completed by the end of 2025, says Axi Immo. 

According to the newest report by Newmark Polska, in the third quarter of 2023, office take-up in Poland’s regional city office markets reached nearly 200,000 sqm, while the development pipeline was below 400,000 sqm. High vacancy rates in existing office buildings mean that tenants have a wide choice of options. Both developers and tenants remain focused on ESG, functionality, flexibility and optimisation of office usage and lease costs.