Research Report OFFICE 2017 GUIDE NEW WARSAW OFFICE ZONES NEW WARSAW OFFICE ZONES The dynamic development of the Zone Page modern office markethas resulted in CBD – CENTRAL changes in the structure of adopted in 3 the 2005 zones distribution. The Polish BUSINESS DISTRICT Office Research Forum (PORF) has decided to review the existing division. CITY CENTRE 4 1 – City Centre North The new business map of the city takes 5 2 – City Centre East 6 into account mainly infrastructural 3 – City Centre South 4 – City Centre West 7 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 developments, what inevitably affects the shifts in the office districts’ boundaries, as well as the changes in EAST 8 the perception of many locations. NORTH JEROZOLIMSKIE The launch of the second underground line had the significant impact on the process of observed 1 CORRIDOR 9 CITY CENTRE 5 – Upper transformations. It has designated potential 6 – Lower locations for the successive office projects. 4 CBD The new office zones bounaries and names WEST 2 5 EAST MOKOTÓW reflect the direction of development and represent 6 3 10 the future reality of office market in Warsaw. 7 – Służewiec JEROZOLIMSKIE The biggest changes were registered in the CORRIDOR MOKOTÓW NORTH 11 central zones. The Central Business District was enlarged to the east by Krakowskie Przedmieście 7 12 and Nowy Świat streets. The previous boundaries ŻWIRKI PUŁAWSKA CORRIDOR from Al. Jana Pawła II and Solidarności, Hoża I WIGURY street were preserved. The City Centre zone CORRIDOR URSYNÓW, WILANÓW 13 was expanded to the north by Dworzec Gdański URSYNÓW, Station area, to the west by Karolkowa street and WILANÓW WEST 14 to the south by Plac Unii Lubelskiej. Vistula river PUŁAWSKA remained the east border. The new City Centre CORRIDOR district is divided into four additional subzones. ŻWIRKI I WIGURY 15 Służewiec was set off from Mokotów zone. CORRIDOR The former South West office district was subdivided into two areas along main arteries - Al. Jerozolimskie and Żwirki i Wigury street. The zones’ names have also been changed. Source: Colliers International based on PORF, Q1 2017. 2 Research Report Report | |GUIDE GUIDE - NEW - NEW WARSAW WARSAW OFFICE OFFICE ZONES ZONES | 2017 | | 2017 Colliers | ColliersInternational International *Data excluding confidential agreements. The dynamic development Prestigious location for tenants of the zone resulted in the from the financial sector and CBD – CENTRAL revitalization and demolition legal and advisory services. of buildings for new office BUSINESS DISTRICT projects: Q22, Spektrum, PHN The highest level of rents and Tower, Ilmet. service charges in Warsaw. Domination of tower projects - Well developed public transport „the City” of Warsaw. network: underground, numerous tram and bus lines, Substantial pipeline of space railway. under construction. 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 SUPPLY (M2) VACANCY RATE (%) RENT (EUR/M2/MONTH) 815,600 14.8 17-23 SPACE UNDER 3-YEAR AVERAGE CONSTRUCTION (M2) DEMAND (M2) 144,500 121,100 BUILDINGS UNDER CONSTRUCTION AND PLANNED Building Address Developer GLA (m2) Varso Chmielna 69-73 HB Reavis 140,000 J44 Jerozolimskie 44 S+B Gruppe 22,000 CEDET Krucza 50 Immobel Group 15,000 LARGEST TRANSACTIONS 2014-2017 Building Tenant Area (m2) Deal type Pałac Jabłonowskich mBank 17,500 renegotiation BRE Bank Rondo 1 EY 13,500 renegotiation Q22 Deloitte 10,700 new deal DEMAND – MAIN SECTORS 2014-2017* PROFESSIONAL FINANCE ENERGY SERVICES INSURANCE IT & TELECOMS INDUSTRIAL MORE INFO ABOUT BUILDINGS >> 39% 21% 11% 7% Source: Colliers International based on PORF, Q1 2017. 3 Research Report | GUIDE - NEW WARSAW OFFICE ZONES | 2017 | 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 Plannned 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. Significant number of The proximity of one of relocations of tenants from the the largest shopping centers in financial sector in the last three Poland – Arkadia (103,000 m2). years. 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 SUPPLY (M2) VACANCY RATE (%) RENT (EUR/M2/MONTH) 151,100 11.7 15.5-19 SPACE UNDER 3-YEAR AVERAGE CONSTRUCTION (M2) DEMAND (M2) 3,000 30,000 BUILDINGS UNDER CONSTRUCTION AND PLANNED Buidling Address Developer GLA (m2) Burakowska 14 Burakowska 14 HB Reavis 80,000 Okopowa/ Green Property B4 Office Center 28,000 Burakowska Group Słomińskiego Art White Red Słomińskiego 4 3,000 Office Investments LARGEST TRANSACTIONS 2014-2017 Building Tenant Area (m2) Deal type Gdański Business Center II Aviva 12,000 new deal Gdański Business Center I KMD 6,200 new deal Gdański Business Center I ANR 5,700 new deal DEMAND – MAIN SECTORS 2014-2017* FINANCE PROFESSIONAL PUBLIC INSURANCE IT & TELECOMS SERVICES SECTOR MORE INFO >> ABOUT BUILDINGS 29% 19% 14% 10% Source: Colliers International based on PORF, Q1 2017. 4 Research Report | GUIDE - NEW WARSAW OFFICE ZONES | 2017 | 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 Project of Elektrownia Powiśle underground line, trams, buses, revitalization for residential, railway. office and service functions. Two main corridors through the An attractive location for public city - WZ route and Wisłostrada. sector companies. 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 SUPPLY (M2) VACANCY RATE (%) RENT (EUR/M2/MONTH) 126,400 16.1 15.5-21 SPACE UNDER 3-YEAR AVERAGE CONSTRUCTION (M2) DEMAND (M2) 28,000 20,100 BUILDINGS UNDER CONSTRUCTION AND PLANNED Building Address Developer GLA (m2) White Star Real EC Powiśle Elektryczna 2a 28,000 Estate LARGEST TRANSACTIONS 2014-2017 Building Tenant Area (m2) Deal type Powiśle Park IQ Investments 11,500 owner occupier PTE Nationale Hortus 7,200 renegotiation Nederlanden EC Powiśle Dentons 5,600 pre-let DEMAND – MAIN SECTORS 2014-2017* PROFESSIONAL FINANCE PUBLIC SERVICES INSURANCE SECTOR MANUFACTURING 35% 17% 17% 11% MORE INFO ABOUT BUILDINGS >> Source: Colliers International based on PORF, Q1 2017. 5 Research Report | GUIDE - NEW WARSAW OFFICE ZONES | 2017 | Colliers International *Data excluding confidential agreements. The prestigious character of The largest office projects – the zone – location of public Puławska Financial Center, Plac CITY CENTRE ZONE institutions, embassies and Unii. 1 2 3 4 ministries. NORTH EAST SOUTH WEST A successful revitalization Expanded public transport and expansion of historic Hala network – underground, buses Koszyki. and trams. Concentration of banks and An extensive commercial offer financial companies. in Plac Unii City Shopping. 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 SUPPLY (M2) VACANCY RATE (%) RENT (EUR/M2/MONTH) 286,100 17.5 16-23 SPACE UNDER 3-YEAR AVERAGE CONSTRUCTION (M2) DEMAND (M2) 7,800 35,500 BUILDINGS UNDER CONSTRUCTION AND PLANNED Building Address Developer GLA (m2) Polna Corner Polna 40 Ceraco 5,700 LARGEST TRANSACTIONS 2014-2017 Building Tenant Area (m2) Deal type Focus Deutsche Bank 10,950 renegotiation International Business PWC 10,800 renegotiation Center Norway House Clifford Chance 3,500 renegotiation DEMAND – MAIN SECTORS 2014-2017* PROFESSIONAL FINANCE SERVICES INSURANCE IT & TELECOMS LIFE SCIENCES 35% 16% 15% 6% MORE INFO ABOUT BUILDINGS >> Source: Colliers International based on PORF, Q1 2017. 6 Research Report | GUIDE - NEW WARSAW OFFICE ZONES | 2017 | Colliers International *Data excluding confidential agreements. The existing and planned supply Emerging office district of concentrated in the proximity of Warsaw - the largest supply of CITY CENTRE ZONE Rondo Daszyńskiego. projects under construction. 1 2 3 4 NORTH EAST SOUTH WEST Convenient public transport Almost half of existing buildings accessibility – the second larger than 15,000 m2 GLA. underground line, trams, buses, trains. Popular direction of relocations of tenants moving from Planned service and retail offer: Służewiec. Towarowa 22, ArtN. 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