REDD Real Estate Digital Data report shows that the total resources of office space in Poland have amounted to 13.36 million square metres at the end of November. 1.25 million square metres of office space were under construction.
According to REDD data, at the end of November, a total of 2.86 million square metres of office space were available in existing buildings and those under construction. In Warsaw alone, 900,000 square metres of space available “off the shelf” is waiting for tenants.
“November saw a slight increase in vacant space available for lease across the country. Vacant space in buildings under construction amounted to over 834,000 square metres. Vacant office space in existing buildings also increased and amounted to 2.16 million square metres,” says Piotr Smagała, Managing Director at REDD.
Warsaw: Less amount of B Class space
In November 2021 the capital’s office space resources have reached 7 million square metres. This is mainly modern space.
“Dividing Warsaw’s office buildings into classes, we see interesting numbers. 4.98 million square metres of the capital’s office space is located in A-class buildings, over 2 million square metres is B-class space. Interestingly, the resources of B-class space dropped by over 13 thousand square metres in November. The number of class C space remains unchanged. It is over 80 thousand square metres,” explains Piotr Smagała, Managing Director at REDD.
The high level of new supply and the lower demand recorded since the beginning of the pandemic have resulted in an increase in vacancy rates. The ratio for Warsaw rose to 13.08 per cent in November 2021.
901,000 square metres of modern space remained available for immediate lease, and a further 26,000 square metres may be added to the inventory of immediately available offices over the next 3 months.
The average rent in Warsaw rose to EUR 13.89/month. In turn, the capital’s REDD Index fell and stands at 360 days. REDD INDEX is an indicator, calculated in days, of the average time it takes to lease office space.
In Warsaw, 454 thousand square metres of offices were under construction at the end of November 2021.