“In the report, we review the main trends in the Warsaw office market, outline lease terms and analyse the key advantages of each zone. Our guide allows tenants and developers to orientate themselves better in the new situation and more precisely assess the potential of particular office zones, which could be very helpful in selecting an office location”, says Dominika Jędrak, Director, Research and Consultancy Services Department, Colliers International.

New office zones

This April, the Polish Office Research Forum (PORF), which Colliers International belongs to, changed the boundaries and names of Warsaw’s office zones in response to the rapidly changing structure of the office market. The biggest changes were registered in the central zones of the city.

“The new business map of Warsaw takes into account mainly infrastructural developments, which have caused shifts in office district boundaries, as well as changes in the perception of many locations. The launch of the second metro line had a significant impact on the transformations, as it marked out potential locations for office projects. The new office zone boundaries and names reflect where development will take place and the future reality of the office market in Warsaw,” says Aleksandra Gawrońska, Analyst at Research and Consultancy Services Department, Colliers International.

The Central Business District was enlarged to the east by Krakowskie Przedmieście and Nowy Świat streets. The previous boundaries along Al. Jana Pawła II, Al. Solidarności and Hoża street were preserved. In turn, the City Centre zone was expanded to the north to include Gdański Railway Station, to the west by Karolkowa street and to the south by Plac Unii Lubelskiej. The Vistula river still remains the eastern border. The new City Centre district is divided into four additional subzones. While in the Mokotów zone, the most dominated by office buildings, the Służewiec subzone has been ring-fenced in the vicinity of the railway station. The former South-West office district has been subdivided into two areas along the main arteries Al. Jerozolimskie and Żwirki i Wigury street.

Most office buildings emerging in the centre

According to the Colliers International publication, the largest amount of office space (290,000 sqm) is now being built in the City Centre West zone in the proximity of Rondo Daszyńskiego, while the highest rents (17-23 EUR/sqm/month) are observed in the central business district (CBD). The largest office projects currently under construction are Varso (140,000 sqm), The Warsaw Hub (75,000 sqm) and Mennica Legacy Tower (63,800 sqm).

Information gathered by Colliers International shows that the largest volume of office space to let currently available for tenants is in the Żwirki i Wigury zone (26.4%), whereas the lowest vacancy rate is recorded in the North zone (2.9%). The biggest supply of office space is still concentrated in Mokotów (over 1.3 m sqm).

Tenants have also been active in the Warsaw office market in recent years. Between 2014 and 2017, the largest transactions were pre-let agreements concluded by tenants from the financial and IT sectors: 22,000 sqm leased by BGŻ BNP Paribas in the office building planned by Yareal located along Kasprzaka and Karolkowa streets, as well as 21,100 sqm leased by Samsung in Warsaw Spire, and 19,500 sqm taken up by Raiffeisen Bank in Prime Corporate Center.