Even fewer vacant offices. Developers are testing the market

Office rentals are increasing, with 331,500 sqm leased in Q3, an 8% rise from last year. Warsaw accounted for over half of this demand. Vacancy rates are declining, with 10.9% across major markets and 7.5% in Warsaw. The average REDD Index, indicating how long offices wait for tenants, rose to 512.1 days. New leases, including pre-leases, made up over 56% of demand, signaling a willingness to secure space ahead of completion. Despite limited new supply, tenant activity is rising, with 592,000 sqm leased in Warsaw since the start of the year. Average rents remain stable, with Warsaw's at €16.43 per sqm, reflecting a 2.3% increase from last year. Developers are cautiously resuming projects, focusing on areas with high tenant interest.