The Warsaw office space market is still very active, and Q1 2017 may be regarded as record-breaking. In the last three months, 10 new buildings have been completed with a total area of approximately 84 thousand sq.m. As a result, the total volume of office space in Warsaw has reached the level of 5.12 million sq.m.
Equally impressive in Q1 2017 was the demand for office space. It amounted to about 194 thousand sq.m, which is nearly 37% more than in the first quarter of last year. This has led to a drop in the vacancy rate to 14% compared to 14.2% at the end of 2016. The highest vacancy rate is noted in the area of Żwirki i Wigury Street (nearly 26%) and the Mokotów District, especially its Służewiec area (over 18%). The lowest rates, on the other hand, are consistently stricken by the Żoliborz District. Base rent rates in the top buildings are on a par with the previous quarters, and range from EUR 23 to 24 per sq.m in central locations and from EUR 13 to 16.5 per sq.m outside the centre.
Given the growing supply of space, but also the matching demand, rent rates should remain unchanged over the coming period. While the asking rates have been kept at constant levels, the growing supply allows tenants to obtain many attractive incentives from landlords. Both developers and owners of buildings offer rent exemption packages and commit considerable resources to adjusting the space in accordance with the growing requirements of tenants.