OFFICE MARKET REPORT WARSAW 2017 Office space market in Warsaw
OFFICE MARKET REPORT WARSAW Warsaw is the most important economic center and hosts the headquarters of numerous Polish and international corporations and state authorities. The main office hubs are located in the city center and in the old warehousing district (Mokotów). The most important factors influencing the choice of rentable space are, with the exception of costs and standard of the building, the proximity to the CBD and the airport, as well as road infrastructure and public transport. Compared with other European capitals, Warsaw is less developed than the capital cities in Western Europe, where the office markets are much older. However, compared with other markets of Central and Eastern Europe, the Polish capital has a much more developed market. Moreover, the market is developing rapidly and has great potential. CBRE Research & Consultancy 2017 CBRE, Sp z o.o. 2
OFFICE MARKET REPORT WARSAW Human capital Population 1.73 M Students 247,500 Graduates 63,900 The number of universities 78 SSC/BPO/ITO Companies 167 Employment 42,600 Specialization Finance and accounting Call Centre Place in the Tholons 2014 ranking 25th Area range Existing 5,222,400 sq m Demand for office space Rental rates Prime: 13.5-23.0 (EUR / sq m / month ) Vacant surface 12.90 % A-class stock 50% Under Construction 791,500 sq m Demand 2017 YTD 388,600 sq m Absorption 2017 YTD 133,100 sq m BPO/SSC Demand n/a Average: 12.0-20.0 (EUR / sq m / month ) Effective: 9.0-19.0 (EUR / sq m / month ) Prime yields: 5.35-7.0 (%) 1,379,700 sq m Planned by the end of 2018 338,844 sq m CBRE Research & Consultancy 2017 CBRE, Sp z o.o. 3
OFFICE MARKET REPORT WARSAW Gross salary in the banking and financial sector GL Accountant: GL Senior Accountant: GL Team Leader: AP/AR Accountant: AP/AR Senior Accountant: AP/AR Team Leader: Project Manager: Financial Controller: Business Analyst: KYC Analyst: AML Analyst: Fund Accountant: Gross salary in the HR sector and serv ices CS Junior Specialist: CS Specialist: CS Team Leader: Payroll Specialist: Senior Payroll Specialist: Payroll Team Leader: Gross salary in the IT sector 1st Line Support: IT Administration: Business / System Analyst: Developer: Tester: Team Leader: Ty pical rental terms Service Charge 14-16 (PLN / sq m / month ) FIT-OUT Budget 200-250 (EUR /sq m) Rent free 6-9 (months) Sources CBRE, Randstad - Q2 2017 CBRE Research & Consultancy 2017 CBRE, Sp z o.o. 4
OFFICE MARKET REPORT WARSAW Examples of the distance between the cities by means of transport WARSAW Time Time Number of connections per day WARSZAWA - - - TRÓJMIASTO 3h 4h 9 KRAKÓW 3h 4h 7 WROCŁAW 4h 3h 9 POZNAŃ 3h 3h 5 KATOWICE 3h 4h 4 FRANKFURT 12h 10h 7 LONDYN 20h 17h 12 PARYŻ 17h 15h 7 SWOT analy sis Strengths Opportunities Weaknesses Threats The most recognized business destination in the CEE region and the biggest agglomeration of Poland Developed road and public transportation infrastructure Cultural and administrative centre of the country Very high availability of office space, students and graduates Constantly developing transportation infrastructure Considerably high pipeline planned for delivery throughout 2015-2016 High absorption of young population from other agglomerations Rental levels in noncentral markets comparable to other regional cities Relatively high salary in comparison to other Polish agglomerations High competition for talent from other sectors located in the city, high attrition ratio Considerably high rent in the City Centre Relatively weak public support for the BPO / SSC sector Competition from other agglomerations, which may offer higher incentives Growing number of companies from BPO / SSC sector in the city CBRE Research & Consultancy 2017 CBRE, Sp z o.o. 5
OFFICE MARKET REPORT WARSAW Selected office projects in Warsaw Contact to us R af ał Wdowczy k R adosław Pawlak Piot r Pikie wicz Director Associate Director Senior Consultant rafal.wdowczyk@cbre.com +48 501 501 395 radoslaw.pawlak@cbre.com +48 22 544 80 35 +48 608 649 335 piotr.pikiewicz@cbre.com + 48 22 544 93 49 + 48 785 830 192 2017 CBRE Sp. Z o.o.. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. CBRE Research & Consultancy 2017 CBRE, Sp z o.o. 6