The Warsaw Research Forum has published its figures for the Warsaw office market for Q4 2012. Its market data prepared by a team of analysts concern modern office stock, new completions, take-up volumes and vacancy rates.
Eleven buildings totalling 120,000 sq m were added to the Warsaw office market in Q4 2012, which took the modern office stock to 3,859,000 sq m. The largest buildings delivered to the market were the Green Corner (24,500 sq m) and the Business Garden with its two buildings totalling 22,000 sq m of office space.
The vacancy rates rose by nearly 0.7 percentage points to 8.8% on Q3 2012. The vacancy rate in central locations stood at 8.8% compared to 8.1% at the end of Q3 2012, in non-central locations also at 8.8% (7.8% in Q3 2012).
Take-up in Q4 2012 reached 153,200 sq m, which boosted the total figure for 2012 to the record level of 608,500 sq m (up by around 6% on 2011’s level). The largest office space volumes were leased on the fringe of the City Centre (28%) and in the Upper Southern zone (27%).
New leases (104,800 sq m) accounted for 68% of all deals, with prelets making up over half of them (54,000 sq m). Renegotiations and extensions accounted for 23% of all transactions, which was a similar figure to that in Q3 2012.
The largest deal in Q4 2012 was the prelet signed by Frontex for 14,600 sq m in the Warsaw Spire office building being developed by Ghelamco, while Bank Ochrony Środowiska S.A. Group took up the entire office space at the Feniks building (8,950 sq m) developed by Europlan and delivered at the end of 2012.
In brief, 2012 was a very good year for the Warsaw office market with more than a twofold increase in new supply of 268,000 sq m. The vacancy rates rose marginally and increased leasing volumes show that the Warsaw market is still active and has room for new projects.