Eolus Poland, a renewable energy developer from Sweden, will become one of the tenants of the LIFE Building. It will soon occupy nearly 300 sqm of the office building in Warsaw’s Wola district. JLL Polska, representing VIG Fund, is responsible for the full commercialisation of LIFE Building, while Find Office represented Eolus Poland in the negotiation process.
As of the end of 2023, Warsaw remains the leader in Poland’s office market, but the 61,000 sqm (-74% y/y) completed in the last 12 months was one of the lowest results in its history, says Axi Immo. The developer’s lower activity period seems to be over, as by 2026, some 150,000 sqm of new supply should be delivered each year. After a very good 2022, 2023 was not much worse. Between January and December 2023, tenants signed contracts for about 750,000 sqm, meaning the total volume of transactions was slightly 13% lower than the year before. Continued low supply in 2023 and stabilizing demand reduced the vacancy to 647,000 sqm (-11% y/y).
The LIXA E office building, built as part of the office complex near Warsaw’s Daszyński Roundabout, has been granted a use permit. The building developed by Yareal Polska has provided the Warsaw market with almost 18,000 sqm of office space.
Only 60,900 sqm of office space was completed in the Polish capital in 2023, the lowest total in the history of the Warsaw office market. Savills also notes that development activity in Warsaw picked up in the second half of last year in response to a prolonged period of undersupply. In the most optimistic scenario, approximately 445,000 sqm of new office space will be delivered onto the Warsaw market in 2024–2026.
2023 was marked in Poland by a shrinking office development pipeline amid a continued focus on the optimization of office footprints and overall office running costs. It was also another year in which both tenants and developers faced relatively high office fit-out costs. In addition, high borrowing costs were a drag on expansion, with caution being a key theme characterizing the Polish office market, says Newmark.
Cushman & Wakefield has summarized the third quarter of 2023 on the Polish office market. Office development activity continues to slow down both in Warsaw and in Poland’s regional city markets. Nominal leasing activity remains high in the largest regional cities, with Warsaw reporting a record number of leases.
Octava sold Obrzeżna Center office building in Warsaw to the Polish investor. The price has not been disclosed. Avison Young and Savills jointly represented the seller.
Another international company has joined the tenant portfolio of Warsaw’s Skyliner office building. The global healthcare company, Falck, has chosen the building owned by the Karimpol Group as its new office for its IT department in Poland. It will occupy nearly 1,500 sqm of space in the Skyliner.
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