WARSAW OFFICE ZONES WARSAW OFFICE ZONES the Publication Below Presents a Panorama of Changes on the Warsaw Office Market
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Research Report OFFICE ZNAJDŹ2019 SWOJE NOWE BIURO GUIDE WARSAW OFFICE ZONES WARSAW OFFICE ZONES The publication below presents a panorama of changes on the Warsaw office market. Zone Page In the past 2.5 years from the previous release CBD – CENTRAL of “Office zones guide” the market grew 3 by half million m2 whereas the vacancy rate BUSINESS DISTRICT fell from 14% to 8.5%. The office market CITY CENTRE 4 is growing dynamically breaking records 1 – City Centre North in categories of new supply and demand. 5 2 – City Centre East 6 3 – City Centre South The modern office supply in the capital city reaches 7 2 4 – City Centre West Map of zone illustrates concentratioon of office project existing in the market, under construction and planned ones. construction and planned under the market, existing in project of office concentratioon Map of zone illustrates 5.5 million m and the record low availability rates indicate high tenants’ activity. Despite the large 8 amount of space under construction estimated EAST for 15% of modern supply the supply gap on NORTH the market is noticeable. In the last 30 months JEROZOLIMSKIE the level of new completions in the Warsaw 1 CORRIDOR 9 central zone accounted for only 180,000 m2, CITY CENTRE 5 – Upper whereas the take-up volume in this period has 6 – Lower CBD exceeded this number by more than five times. 4 WEST 2 EAST 5 MOKOTÓW Among the trends worth noting are consolidation 6 3 10 7 – Służewiec in the financial sector as well as the growing activity of coworking operators. Banks and JEROZOLIMSKIE MOKOTÓW NORTH 11 insurance companies centralize their operations CORRIDOR by choosing prestigious projects in the center of 7 ŻWIRKI the capital for their new headquarters - mBank in PUŁAWSKA 12 the Mennica Legacy Tower, Getin Noble Bank at I WIGURY CORRIDOR The Warsaw Hub C or Warta in the Warsaw Unit. CORRIDOR URSYNÓW, URSYNÓW, WILANÓW 13 Serviced offices and coworking sector in Warsaw WILANÓW was developing extremely active in the analyzed PUŁAWSKA 14 period. Transactions concluded by flex operators have CORRIDOR WEST exceeded the level of 100,000 m2. Most of them have located their modern designed offices in Śródmieście. ŻWIRKI I WIGURY 15 Decreasing vacancy rates in the center of Warsaw CORRIDOR and flexible rental model result in growing interest in this type of rental, also by corporate tenants. Source: Colliers International, H1 2019. 2 Research Report Report | GUIDE| GUIDE - WARSAW - WARSAW OFFICE OFFICE ZONES ZONES | 2019 | |H1 Colliers 2019 International| Colliers International *Data excluding confidential agreements. Domination of tower projects - Prestigious location for tenants „the City” of Warsaw. Four high from the legal and advisory CBD – CENTRAL rise projects under construction services, as well as financial including the highest office sector. tower in the UE - Varso. BUSINESS DISTRICT Coworking and serviced offices Well-developed public transport concentration area - over network: underground, 50,000 m2 leased by the largest numerous tram and bus lines, international operators i.e. railway. Cambridge Innovation Center, New Work, Regus, Rent24, The highest level of rents and Spaces, WeWork. service charges in Warsaw. Map of zone illustrates concentratioon of office project existing in the market and under construction ones. and under the market existing in project of office concentratioon Map of zone illustrates SUPPLY (M2) VACANCY RATE (%) RENT (EUR/M2/MONTH) 881 400 5.2 19-24 SPACE UNDER AVERAGE ANNUAL CONSTRUCTION (M2) DEMAND 2017 - H1 2019 207,100 155,200 BUILDINGS UNDER CONSTRUCTION AND PLANNED Building Address Developer GLA (m2) Varso Chmielna 69-73 HB Reavis 127,400 Skysawa Świętokrzyska 36 PHN 40,000 Widok Towers Jerozolimskie 144 S+B Gruppe 22,000 LARGEST TRANSACTIONS 2017 - H1 2019 Building Tenant Area (m2) Deal type renegotiation Q22 Deloitte 22,100 and expansion Atrium Garden J.P. Morgan Poland Services 15,600 new deal Varso II Cambridge Innovation Center 13,500 pre-let DEMAND – MAIN SECTORS 2017 - H1 2019* FINANCE IT PRODUCTS PUBLIC MORE INFO SERVICES & INSURANCE & SERVICES SECTOR ABOUT >> BUILDINGS 36% 21% 11% 7% Source: Colliers International, H1 2019. 3 Research Report | GUIDE - WARSAW OFFICE ZONES | H1 2019 | Colliers International *Data excluding confidential agreements. Intensive residential One of the largest office parks developments and historical in Warsaw – Gdański Business CITY CENTRE ZONE premises of Old Town and New Centre (96,000 m2). 1 2 3 4 Town. NORTH EAST SOUTH WEST Planned office investments in Convenient public transport the proximity of PKP Warszawa network - railway, underground, Gdańska station and Rondo buses and trams; dense network Radosława. of bicycle paths. Growing popularity of the zone The proximity of one of among tenants - significant fall the largest shopping centers in of vacancy rate and increase in Poland – Arkadia (103,000 m2). asking rents level. Map of zone illustrates concentratioon of office project existing in the market and under construction ones. and under the market existing in project of office concentratioon Map of zone illustrates SUPPLY (M2) VACANCY RATE (%) RENT (EUR/M2/MONTH) 155,200 3.1 18.5-21 SPACE UNDER AVERAGE ANNUAL CONSTRUCTION (M2) DEMAND 2017 - H1 2019 22,300 26,300 BUILDINGS UNDER CONSTRUCTION AND PLANNED Buidling Address Developer GLA (m2) Forest Burakowska 14 HB Reavis 76,300 Libero Burakowska 4 Green Property Group 28,000 LARGEST TRANSACTIONS 2017- H1 2019 Building Tenant Area (m2) Deal type North Gate Sanofi Zentiva 5,700 renegotiation and expansion M10 Office for Democratic Institutions 4,800 renegotiation and Human Rights Gdański Business Philip Morris 4,700 renegotiation Center II D and expansion DEMAND – MAIN SECTORS 2017 - H1 2019* PUBLIC LIFE IT PRODUCT MORE INFO SECTOR SCIENCES SERVICES & SERVICES WIĘCEJABOUT INFO >>>> OBUILDINGS BUDYNKACH 22% 15% 13% 12% Source: Colliers International, H1 2019. 4 Research Report | GUIDE - WARSAW OFFICE ZONES | H1 2019 | Colliers International *Data excluding confidential agreements. A large share of parks and Luxury residential area - green areas, access to Vistula boutique projects offering CITY CENTRE ZONE Boulevards. unique conditions for recreation 1 NORTH 2 EAST 3 SOUTH 4 WEST and leisure. Convenient transport network - four bridges, the second Successful revitalization underground line, trams, buses, of Elektrownia Powiśle for railway. residential, office and service functions. Two main corridors through the city - WZ route and Wisłostrada. An attractive location for public sector companies. Map of zone illustrates concentratioon of office project existing in the market and under construction ones. and under the market existing in project of office concentratioon Map of zone illustrates SUPPLY (M2) VACANCY RATE (%) RENT (EUR/M2/MONTH) 137,700 6.8 15-22 SPACE UNDER AVERAGE ANNUAL CONSTRUCTION (M2) DEMAND 2017 - H1 2019 3,600 19,600 BUILDINGS UNDER CONSTRUCTION AND PLANNED Building Address Developer GLA (m2) White Star Real EC Powiśle B1 Elektryczna 2a 3,600 Estate LARGEST TRANSACTIONS 2017 - H1 2019 Building Tenant Area (m2) Deal type The Tides Langas Group 2,200 expansion Sheraton Regus 1,820 renegotiation The Polish Bank renegotiation Nordic Park 1,740 Association (ZBP) and expansion DEMAND – MAIN SECTORS 2017 - H1 2019* LIFE SERVICES SCIENCES RETAIL MEDIA MORE INFO ABOUT >> BUILDINGS 22% 15% 12% 11% Source: Colliers International, H1 2019. 5 Research Report | GUIDE - WARSAW OFFICE ZONES | H1 2019 | Colliers International *Data excluding confidential agreements. The prestigious character of Expanded public transport the zone – location of public network – underground, buses CITY CENTRE ZONE institutions, embassies and and trams. 1 2 3 4 ministries. NORTH EAST SOUTH WEST A successful revitalization 2/3 of existing office space and expansion of historic Hala older than 10 years - Puławska Koszyki for office, retail and Financial Center, Focus, services purposes. International Business Center, Europlex. Concentration of banks and financial companies. An extensive commercial offer in Plac Unii City Shopping. Map of zone illustrates concentratioon of office project existing in the market and under construction ones. and under the market existing in project of office concentratioon Map of zone illustrates SUPPLY (M2) VACANCY RATE (%) RENT (EUR/M2/MONTH) 301,200 8.4 16-23 SPACE UNDER AVERAGE ANNUAL CONSTRUCTION (M2) DEMAND 2017 - H1 2019 - 42,400 LARGEST TRANSACTIONS 2017 - H1 2019 Building Tenant Area (m2) Deal type Piękna 2.0 KNF 14,800 new deal renegotiation Renaissance Building Viacom 5,300 and expansion Zebra Tower mBank 4,700 new deal DEMAND – MAIN SECTORS 2017 - H1 2019* FINANCE IT PRODUCT SERVICES & INSURANCE MEDIA & SERVICES MORE INFO 30% 28% 12% 8% ABOUT >> BUILDINGS Source: Colliers International, H1 2019. 6 Research Report | GUIDE - WARSAW OFFICE ZONES | H1 2019 | Colliers International *Data excluding confidential agreements. Recently emerged Warsaw Popular direction for office hub - the largest consolidation of finance sector CITY CENTRE ZONE amount of office space under tenants - mBank, Getin Noble 1 NORTH 2 EAST 3 SOUTH 4 WEST construction, growing investors Bank, BGŻ BNP Paribas. interest. Planned service and retail offer: The existing and planned supply Towarowa 22, ArtN. concentrated in the proximity of Rondo Daszyńskiego. Convenient public transport accessibility – trams, buses, Almost half of existing buildings trains. the second underground larger than 15,000 m2 GLA. line. Map of zone illustrates concentratioon of office project