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Office Market News

Polish industrial market continues to grow Y-O-Y – the only one in Europe

Gross demand was 2.2 million sqm – this is the best result for the first half of the year in the market’s history. New leases and expansions accounted for nearly 1.7 million sqm, which is a 30% improvement Y-O-Y. This means that Poland is the only country in Europe to have seen net demand growth.

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Offices in Warsaw return to the new normal

By the end of H1 2020 demand was 335,000 sqm. In fact, demand for office space in Q2 was significantly higher than in Q1. Vacancy rates across Warsaw increased slightly by 0.1 p.p., with 770,000 sqm under construction.

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Poland in world’s top 20 for real estate transparency

The Polish market, considered by investors as transparent, maintains its leading position in the CEE region.

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Regional markets remain stable

In terms of tenant activity, the major regional markets can speak of a better H1 than a year ago. Despite the expected slowdown, some companies continue to expand their business.

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Globalworth takes over management of Kraków complex

Starting July 2020, Rondo Business Park, an office complex located in Kraków, will be managed by Globalworth. A percentage of over 80% of the company's Polish portfolio is represented by in-house managed assets.

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Only four megaprojects are under construction in Poland

There are only four construction projects with a unit value in excess of PLN 3 billion (€670 million), excl. VAT, currently underway in Poland. The combined value of these projects, commonly referred to as megaprojects, is almost PLN 17 billion (€3.8 billion), excl. VAT. This is not a lot, given the fact that projects worth a total of nearly PLN 300 billion (€67 billion) are in the pipeline.

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New investors account for half of transactions in Poland

The first half of 2020 saw a record high investment activity with €3.5 billion of investment transactions closed on the Polish market. Although this was a 30% higher result compared to the corresponding period of last year, achieving a full-year result similar to the record-breaking €7.8 billion volume of 2019 may be difficult, according to Avison Young.

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How long will COVID-19’s effects on Warsaw’s office market last?

What will the Warsaw office market look like in the next 18 months? Experts of Savills have outlined two potential scenarios. Both scenarios foresee a short-term decrease in demand and rising vacancy rates, but with a different scale of impact of the COVID-19 pandemic on the Polish capital’s office market. Both also forecast that the market will remain resilient in the long term.

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