Increased construction activity has pushed up office vacancy rates in Warsaw, according to new research from Jones Lang LaSalle.
Increased construction activity has pushed up office vacancy rates in Warsaw, according to new research from Jones Lang LaSalle.
Some 576,000 m2 of office space is currently under construction in the Polish capital. This high level of construction activity saw vacancy rates rise to 9.9% during the first quarter of 2013, representing a year-on-year rise of 2.6%, JLL said.
The increase comes against a backdrop of sustained demand. The first three months of 2013 saw net take-up excluding renewals of 98,700 m2, representing a year-on-year increase of 16%.
The high vacancy levels also saw monthly rents for prime properties soften slightly to between €22 and €24.5 per m2. The report states that rental conditions are becoming more favourable for tenants in the city.
JLL predicts that vacancy rates will continue to increase across 2013 as a whole.
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