JLL the real estate advisory firm, has reported on the Warsaw office market, (including co-working space,) as the first half of 2018 has come to a close.
Very nearly 425,000 square metres of modern office space was leased in Warsaw in the first half 2018, with a further 700,000 square metres of offices currently being under construction. Rents increased in-line with decreasing vacancy rates. Interestingly, new Co-Working concepts are beginning to build interest as well.
Demand for the City Centre
“Warsaw is one of the most active markets in terms of the development of modern office space in Europe. Demand is clearly driven by a constant influx of new international companies, expansion of those already present as well as firms’ transfers from older to more modern office buildings, located predominantly in the center. In the first half 2018, the occupier activity totaled 424,700 square meters” it was reported by Mateusz Polkowski, head of research and consulting at JLL.
The centre of Warsaw, with 113,000 square metres leased, was the most popular sector among tenants, especially with those just entering the market. Alongside the Central Business District (90,700 square metres) and Mokotów (92,600 square metres), they account for 70 percent of the total take-up in Warsaw.
Co-Working spaces are gaining traction in Warsaw
The strong performance seen in Warsaw was due to companies from a very wide range of sectors being active on the market. This high demand can be mostly attributed to the modern business services, consulting and banking sectors, as well as Co-Working operators. H1 2018 saw the latter account for 21.5 percent of the total demand volume of central areas of the city.
“The growing popularity of coworking concepts stems from the changing work style of the millennial generation as well as the growing competition for talent on the labor market. Employers look for new ways to attract and retain specialists and are offering modern coworking spaces, which are well equipped in terms of technological solutions. Warsaw is now reflecting this worldwide trend. As a consequence, coworking operators have become an increasingly important source of office space,” said JLL’s head of office agency, Tomasz Czuba.
The picture continues to look bright for Warsaw with investors showing continuing confidence in Poland’s economy and its adoption of new concepts such as Co-Working.