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Summer 2009
Office Market in Poland
The slowdown in the economy affected strongly the office markets both in Warsaw and regional cities. Decreased demand for offices has been observed throughout the whole country.
Take-up in Warsaw decreased by 60% compared to 2007 - 2008.
The real demand for offices remains untested in some locations (e.g. Katowice, Poznań, Szczecin) due to low immediate availability of offices.
Despite the economic slowdown, regional cities are experiencing a significant increase in new supply of modern offices. Phased development of large office parks located in non-central locations is creating a longer pipeline of supply.
Despite the temporary increase in vacancy rates in most cities, the average rate still remains below 10.0%.
Developers have sought to moderate the fall in lease rents by offering larger concessions to secure tenants, thus effective rents have fallen more significantly.
The most significant decrease in lease rents has been observed in Warsaw CBD (up to 25%), albeit that this was from very high levels.
Suprisingly, the overall outlook for the market is positive. A slow increase in demand is projected in 2010 and more dynamic in 2011 - 2012. New supply will decline as no new buildings are commencing. Rents are expected to stabilize within the next 12 - 18 months
CONTACT
Brian Burgess +48 22 330 06 34
bburgess@savills.pl
Marek Stasieńko +48 22 330 06 58
mstasienko@savills.pl
Monika Rogucka +48 22 330 06 57
mrogucka@savills.pl
Małgorzta Biskupska +48 22 330 06 53
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