Warsaw’s office market set for strong 2019

Warsaw should see significant rental growth and strong investment volumes in 2019, cementing its position as the leading office real estate investment destination in Eastern Europe, according to JLL.

Modern office stock in the Polish capital stands at 5.4 million square meters (58 million square feet), with an additional 740,000 square meters (7.97 million square feet) under construction and scheduled to be completed by 2021. Occupier activity has surged since 2015 and 632,000 square meters were leased between Q1 and Q3 2018. As a result, the vacancy rate in Warsaw dropped to 10 percent by the end of Q3. JLL says the vacancy rate in the city’s central zones now stands at 6.6 percent, which is the lowest recorded level since 2012.

These low vacancy rates, along with high demand, have seen prime headline rents increase in Warsaw’s CBD. Prime rents are currently set betwe