Warsaw’s growing office supply is pushing rents down and the trend is expected to continue until H1 2017, according to CBRE. The city dropped 25 places in CBRE’s Global Prime Office Occupancy Costs raking and is currently listed as the 85 most expensive office location worldwide, with rents averaging €34 per sqm. London’s West End has once again topped the list, with rents averaging €223 per sqm, followed by Hong Kong (€212 per sqm) and Beijing (€163 per sqm).
“As a significant part of supply are projects going up in the city center of Warsaw, we’re seeing some significant drops in rent levels for the city’s key locations,” says Joanna Mroczek, head of research and marketing at CBRE. She adds that rents will likely stay competitive until 2016, or even H1 2017, when big project like Q22 and Warsaw Spire are fully leased. “After that, we expect some slow stabilization,” she adds.
