Warsaw, November 25, 2014 – Leasing activity in the third quarter recorded the best result since the beginning of 2014. From July to September agreements for 289,000 sqm were signed. Net absorption reached the level of 128,700 sqm. Pre-let transactions made up a share of 18,6% of total volume.
In Q3 2014, 160,000 sqm of modern office space were delivered to the market. The highest supply increase was noted in Kraków (68,500 sqm), which surpassed Warsaw (60,000 sqm). Poznań, Katowice, Tricity and Łódź registered slight increases, whereas the supply in the rest of the markets remained unchanged.
The vacancy rate exhibited a slight upward trend. At the end of September, the rate for the nine main markets totalled 12.5% (in comparison to 11.3% in the corresponding period in 2013). The lowest vacancy rate was unchanged in Kraków (3.5%), while the highest was in Szczecin (17.9%).
According to Colliers the average asking rents in Warsaw ranged between EUR 12 and 26/sqm/month, while in the regional cities they ranged between EUR 11.5 and 15.5/sqm/month.
Currently, 1.2 million sqm are under construction. The highest construction activity is noted in Warsaw, Wrocław and Kraków. New supply planned to be delivered to the market in Q4 2014 is estimated at 210,000 sqm. The highest stock increase will be noted in Warsaw (92,000 sqm), Katowice (41,500 sqm) and Wrocław (27,500 sqm).
„Even though base rents remain at a relatively stable level, strong pressure on effective rents will be noted in the following months.” – said Paweł Skałba, Partner, Director of Office Agency, Colliers International