Brookfield Partners systematically monitors all office spaces, regardless of building class. The Office Market Pulse report covers 7.94 million m² of office space, which is approximately 1.7 million m² more than competing reports.
Warsaw Office Market in Light of 2023 Changes and Challenges
According to Brookfield Partners' consulting firm report, total office space in the capital at the end of 2023 was 7.94 million m², of which 4.99 million m² is Class A buildings, 2.64 million m² Class B buildings, and 318,000 m² Class C buildings.
New Supply and Projects Under Construction
In 2023, approximately 67,000 m² of office space was delivered in Warsaw. This is the lowest new office supply in years. Since the pandemic outbreak in 2020, we have observed a successive decline in space under construction. In 2017-2019, volumes reached 700,000-800,000 m² of space under construction, while at the end of 2023, 12 buildings with a total area of approximately 245,000 m² were under construction.
Demand in the Office Real Estate Market in Warsaw
In 2023, demand for modern office space reached 748,800 m². Throughout 2023, approximately 800 lease agreements were signed in Warsaw. In terms of location, the Center, Sluzewiec, and Central Business Area attracted the most tenant interest.
Challenges for Tenants
Asking rental rates for office space in Warsaw remained stable in 2023. In the best office buildings in central zones, monthly rates ranged between 21.0-25.5 EUR/m². In Mokotow, asking rents for the most attractive modules oscillate around 13.0-15.0 EUR/m² per month.
Vacancy Rate
At the end of 2023, the volume of free space in all classes in Warsaw was approximately 897,780 m², translating to a vacancy rate of 11%. It is most difficult to find tenants in Sluzewiec and southern Mokotow, where free office space amounts to 317,000 m² (19% vacancy rate).