Warsaw Office market report 2006

Transcription

1 Research Warsaw Office market report 2006 Contents Warsaw map 2-3 Market breakdown 4 Market data 5 Brama Zachodnia Jerozolimskie district Executive summary The Warsaw market has seen a gradual erosion of vacancy rates over the last three years. Vacant space now accounts for 8.75% of total stock, having peaked at 20% in mid There is now a lack of development opportunities in the CBD, with projects largely being restricted to redevelopments behind existing facades. Prime rents are widely thought to have bottomed out and the generous incentive packages previously on offer to tenants have been tightened as surplus availability has been absorbed. Evidence of prime rental growth has become apparent, although it is restricted to the prime CBD, where prime rents currently standing at circa 240 per sq m per annum. Rental growth in secondary locations is expected to return at a slower pace. Prime yields in the Warsaw office market now stand at circa 5.75%, with exceptional deals taking place below this level. Warsaw, and now increasingly the regional cities, have been the focus of substantial investment from international players and competition for investment product is high.

2 2 Warsaw office market report 2006 Knight Frank Warsaw region WOLA AL. PRYMASA TYSIACLECIA GORCZEWSKA WOLSKA AL. SOLIDARNOSCI LEGIONOWO WOLSKA KASPRZAKA PROSTA LOMIANKI BIALOLEKA BIELANY Warszawa Zachodnia ZOLIBORZ TARGOWE BEMOWO PRAGA PLN. OZAROW WOLA SRODMIESCIE AL. JEROZOLIMSKIE OCHOTA Warszawa Zachodnia Ochota GRZYMALY PRUSZKOW URSUS WLOCHY MOKOTOW BITWY WARSZAWSKIEJ AL. JEROZOLIMSKIE Park Szczesliwicki JANKI Port Lotniczy Warszawa Okecie URSYNOW GROJECKA PIASECZNO JOZEFOSLAW

3 3 Warsaw office market report 2006 Knight Frank WARSAW CBD Praga Mariensztat Orgód Saski AL. JANA PAWLA II MARSZALKOWSKA Mirow MARKI PROSTA SWIETOKRZYSKA Palace of Culture and Science AL. JEROZOLIMSKIE Powisle WARSZAWA CENTRALNA AL. UJAZDOWSKIE ZABKI K REMBERTOW WESOLA PRAGA PLD. WAWER MOKOTOW WORONICZA WILANOW SUWAK Mokótow Station KONSTRUKTORSKA DOMANIEWSKA WOLSKA KONSTANCIN JOZEFOW SASANKi WIRAZOWA MARYNARSKA l RODZINY HiSZPANSKiCH AL. WILANOWSKA

4 Knight Frank Warsaw office market report Competition amongst investors has accelerated the fall of yields, which now stand at 5.75% for prime product, leading to regional markets increasingly attracting interest. Figures as at end June 2006 Area Prime rent Average rent Stock Vacancy Vacant ( per sq m/ ( per sq m/ (sq m) rate space per annum) per annum) (%) (sq m) CBD ,066,000 10% 106,000 Mokotów ,000 4% 21,000 Wola , % 23,000 Al. Jerozolimskie ,000 13% 24,000 Other 128,000 37,000 Warsaw total ,340, % 211,000 Key leasing transactions Scheme/address Sub-market Tenant Size Type of transaction Mokotów Point Mokotów Generali 6,300 Pre-let Millennium Plaza CBD ABG Ster-Projekt 5,900 New Trinity Park II Mokotów Fortis Bank 5,400 Pre-let Warsaw Towers CBD Procter & Gamble 4,200 New Wiśniowy Business Park other Lafarge 2,800 Pre-let Jerozolimskie Business Al. Jerozolimskie Mazovian Gas 2,700 New Park B Company (Mazowiecka Spólka Gazownictwa) Riverside Park CBD Tchibo 2,500 New Warsaw continues to be the focus of office development activity in Poland, with significant amounts of space expected to be delivered from the development pipeline in the coming year. Major investment transaction 2005/2006 Property Date Price Yield (%) Vendor Buyer (mln ) Rondo 1 Q Hochtief Commerzleasing Projektentwicklung und Immobilien Metropolitan Q Hines Polska DEGI Warsaw Q GE Capital Golub CA Immobilien Financial Centre Anlagen/Pramerica (80% share) RealEstate Investors Rondo 1 Q Commerzleasing London & Regional und Immobilien Properties Mistral Q Karimpol Immoeast Immobilien Anlagen AG (Immofinanz AG) Renaissance Q Yareal Falcon Building International NV Natpoll Business Q Natpoll Sp. z o.o. Sage Capital Global Center Optimus- Q N/A Brel-Res BPH FIZ Sektora complex Nieruchomości

5 Knight Frank Warsaw office market report Figure 1 Total stock vs vacancy rates Figure 2 Prime rents ( per sq m per annum) 400 million sq m % per sq m per annum Ujazdowskie 10 CBD district Total stock Vacancy rate mid end 2001 mid 2002 end 2002 mid 2003 end 2003 mid 2004 end 2004 mid 2005 end 2005 mid 2006 Figure 3 Warsaw submarket vacancy rates 25 Figure 4 Warsaw submarket stock levels Warsaw data Poland: Q2 Population 38.1 m GDP Growth 5.5% Unemployment 15.6% Inflation rate 0.8% Exchange rate USD/PLN 3.11 EUR/PLN 3.96 Warsaw: Population 1.7 m Companies 301,515 with foreign capital 16,159 Unemployment 5.0% Main investors: France Telecom, Procter & Gamble, Accenture % Figure 5 Prime yields CBD Mokotów Jerozolimskie AL. Wola % Other June s sq m CBD Mokotów Jerozolimskie AL. Wola Other end June mid 2006 Kliwer Mokotów district

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