2023-10-31-莱坊-European_Office_Dashboard_-_Warsaw_Q3_2023_2页_573kb

Warsaw Office Market Q3 2023 Summary

Key Metrics

• Space Take-up: Office space take-up in Warsaw totalled 174,032 sqm in Q3 2023, representing a 4.1% increase quarter-on-quarter and contributing to year-to-date (ytd) total take-up of approximately 500,000 sqm.
• Vacancy Rate: Ended Q3 2023 at 10.6%, down 0.8 percentage points (pp) from Q2 2023 and 1.5 pp from Q3 2022. Central zones showed vacancy rates of 9.1%, while outer areas stood at 11.8%. Specific rates included low vacancy in North zone (4.8%) and Mokotów (5.6%), with the highest in Służewiec (20.2%).
• Prime Rent: Increased to €324 per sqm per annum, a 3.9% rise compared to Q2 2023.

Tenant Activity

• Q3 2023 saw heightened tenant activity, with new agreements accounting for 58% of total transaction volume (over 287,800 sqm). Twelve of the largest leases involved renegotiations, which made up 38% of lease volume (about 190,000 sqm). Expansion agreements contributed only 18,700 sqm, or 4% of the total space accounted for in Q1-Q3 2023.

Economic Context

• Economic indicators suggest a stable labor market with a low unemployment rate of 5.0% since June 2023, supported by resilience despite slowing new business registration and inflationary pressures. Service sector confidence improved year-on-year but employment expectations turned negative in Q3 2023.

For further details, contact: Bożena Garbarczyk (Knight Frank, Warsaw), Monika Sułdecka (Knight Frank, Warsaw), James Bartolo (Knight Frank, London).