Warsaw Office Market Profile, Q3 2012

Report Summary:

• Occupiers' sentiment in Warsaw remains strong with over 157,600 sq m leased in Q3 2012 and totalling 455,300 sq m so far this year.
• Almost 95,000 sq m was leased in major office markets (excl. Warsaw), with Wrocław, Kraków and Katowice clearly leading in occupier activity.
• The major pre-lease transactions signed across the country in Q3 included: Poczta Polska (pre-let of 12,600 sq m in Domaniewska 37c, Warsaw), Nokia Siemens Networks (a new/pre-let of 14,420 sq m in Green Towers A&B, Wrocław), Unilever - UltraLogistik (a pre-let of 5,400 sq m in Nowe Katowickie Centrum Biznesu, Katowice) and Bayer SSC (a pre-let of 2,300 sq m in Olivia Tower, Tri-City).
• In Warsaw 56,100 sq m were brought to the market in Q3 2012. Other Polish markets saw 73,400 sq m of new office space being delivered.
• Vacancy rate increased to 8.1% in Warsaw and remained stable in Kraków and Łódź, whilst decrease was seen in Lublin. Other major office markets in Poland have recorded an increase in the vacancy level.
• In Q4, 120 000 sq m are expected to be completed in Warsaw of which 41% is already pre-leased, while 174,600 sq m is likely be delivered in other major Polish cities.
• Prime headline rents remained stable in Warsaw and the majority of office markets in Poland for the 3rd consecutive quarter.

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