Warsaw office market
The demand for modern office space in Warsaw seems stable, which means consistently strong. Both local and global political-economic situation have not and are not anticipated to impact on the modern office space market in the capital. The high level of developer activity coincides with stable demand driven by, amongst others, an increasing number of companies making the decision to relocate their businesses from other countries to Poland. The sheer volume of leases concluded in Warsaw is a proof that tenant activity remains strong. Despite the temporary stabilization of the vacancy rate below 15%, we expect that the upward trend will return and will continue through to mid-2018, however it should not exceed the level of 15.5%.
Łukasz Kałędkiewicz, Senior Director, Advisory & Transaction Services, CBRE
Regional office markets
Developer activity in the regions is generated by the strong demand for modern office space on those markets. The stock of modern office space will continue to grow over the next two years, with the highest level of activity projected for Kraków (more than 300 000 sqm under construction). Due to the increasingly higher vacancy rate, developers may have to expect heightened requirements from tenants and be prepared to expand their incentive packages. In many cities supply will surpass demand, nonetheless the unwavering interest on the part of tenants, particularly those from the BPO/SCC/IT sector, allows us to predict that the newly built space will be gradually absorbed by the market. Notwithstanding, it has to be stressed that the schemes that are already under construction, preferably located within city boundaries and offering tenants the optimal working environment along with the abovementioned incentive packages, will be leased first, irrespective of which particular regional market is concerned here.
Kamil Tyszkiewicz, Director, Advisory and Transaction Services, Office, CBRE
Idustrial and logistics market
On-line retailing is affecting the logistics market to an increasing degree now. The dynamic growth of the e-commerce sector translates into strong demand for warehouse space in both large-format regional distribution centres, frequently occupied by leading international e-commerce players, and urban logistics centres responsible for the final stage of distribution within the supply chain (the so-called 'last mile').
Aleksander Kuźniewski, Associate Director, Industrial&Logistics, CBRE
As a result of the increasing competition in the form of modern schemes offering innovative solutions, many older schemes are now facing the need to introduce some necessary changes and improvements. As many as 50% of Poland's existing shopping centres have been on the market for 10 years or longer. Developers should now be planning to not only implement new schemes, but also to modernize and modify the existing schemes. Renovations and alterations in respect of the existing space as well as verification of the retail offer and introduction of new technologies represent a trend that is set to continue over the coming years.
Magdalena Frątczak, Senior Director, Retail Department at CBRE
The investment market in Poland in Q1 2017 was dominated by the hotel sector, which due to a purchase transaction in respect of three 5-star hotels held a 45% share in the market. The transaction means that the Sheraton Hotel in Kraków and two hotels in Warsaw: Radisson Blu Centrum and Westin have now found a new owner. Furthermore, investors are displaying unwavering interest in the retail and office sectors which hold a respective 33% and 20% share in the total volume of investment transactions. 2017 is generally looking extremely positive due to the fact that there are numerous transactions underway on the market at the moment.
Przemysław Felicki, Director, Capital Markets, CBRE
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