2023-07-26-莱坊-European_Office_Dashboard_-_Warsaw_Q2_2023_2页_544kb

Warsaw Office Market Summary - Q2 2023

Market Performance

• Q2 2023 saw limited tenant activity due to slower momentum compared to 2022, with total lease take-up of 167,120 sqm, representing a 33% year-over-year decrease, bringing H1 2023 total to 326,120 sqm.
• New agreements dominated transactions, accounting for over 60% of total volume in the first half of 2023, with renegotiations making up nearly 35%.
• The Central submarket was the most popular, attracting 58% of deal volume, followed by Jerozolimskie Corridor and Służewiec.
• Vacancy Rate decreased to 11.4% in Q2 2023, the lowest since Q1 2021, dropping 50 basis points from Q2 2022. This is attributed to limited new supply (only 265,000 sqm under construction) and rising vacancy rates in outer areas.
• Prime Rent remained stable at €312 per sqm per annum for the fourth quarter in a row, with no significant change in the forecast for short-term stability.

Occupier Headlines

• Key trends include a mix of renegotiations and new deals, with large transactions occurring in major buildings like Taifun, Warsaw Spire A, and Horizon.
• Economic indicators highlight Poland's strong position with unemployment rates among the lowest in Europe, falling to 5.0% in Q2 2023, the lowest since 2019. Service sector confidence improved marginally in Q2 2023, remaining resilient despite economic uncertainties.

Full Year Context

• H1 2023 showed subdued take-up, partly due to COVID-related factors and a slowing economy.
• Future outlook depends on ongoing supply pipelines and macroeconomic conditions.

Contacts

• For detailed research or queries:
• Local Research: Elżbieta Czerpak (elzbieta.czerpak@pl.knightfrank.com, +48 22 596 50 50) and Monika Sułdecka (monika.suldecka@pl.knightfrank.com, +48 605 355 620).
• London Contact: Colin Fitzgerald (colin.fitzgerald@knightfrank.com, +44 20 7861 1203).