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Warsaw District of Służewiec Is Still Attractive to Tenants

Domaniewska Office Park

Changes in infrastructure and transports, as well as competitive offer when it comes to prices attracts new tenants to Sużewiec district office center.

Contrary to expectations, Warsaw's Służewiec office disctict does not lose its importance. Despite the fact that the infrastructure is still struggling, actions have been taken to bring a solution. The largest office space district in the country, offering over 1 million sq m of office space is still attracting tenants. It lures, in particular, with very attractive rental rates.

Competitive prices go hand in hand with a good offer. Most of the office buildings in Służewiec provide class A modern office space. And the rates here are on average 30 per cent lower than in the office buildings located in the vicinity of Warsaw center.

New lease contracts and the implementation of further large investments proves that the location is still attractive, both for investors and tenants. The land acquired by investors in ​​Służewiec area may generate another 300 thousand sq m of offices, but some developers consider the possibility of converting the function of some of the planned investments. According to Walter Herz consulting company, there are currently over 70 thousand sq m of office space under construction in Służewiec.

In spite of the growing competition, mainly from large-scale investments in the central area of ​​the city and near Wola, Służewiec remains a strong office center. According to Walter Herz, the new Warsaw business center, which is growing in the vicinity of Daszyńskiego roundabout, offers over 600 thousand sq m of office space. What is more, over 300 thousand sq m of new space is under construction.

The emerging new business centers and the migration of tenants between them is a natural consequence of the development of Warsaw office market. The increasing competition in the office real estate sector can only bring positive results, in the form of a better and more diverse offer and improvement of urban infrastructure.

Mateusz Strzelecki, a partner at Walter Herz consulting company, talks about the unwavering position of Mokotów - Służewiec is currently undergoing infrastructure transformation in terms of spatial arrangement, and thanks to competitive prices and improved transport, the location is still of great interest to companies looking for office space in Warsaw. Recent transactions in, among others, Domaniewska Office Park building, where we provided consultancy, is a clear signal that investors are constantly perceiving Służewiec as a good location for business - informs Mateusz Strzelecki.

PR Multi Communications agency, which we supported in the negotiations, has recently become the new tenant of DOP Beta building. By the beginning of 2018 the company will occupy office space of 400 sq m – adds Strzelecki.

The Avalon Foundation also decided to locate its headquarters at Domaniewska. – Balancing several factors, including location and reasonable commercial conditions prompted us to select Domaniewska Office Park. Adaptation of the building to the needs of people with disabilities was an additional motivation - admits Łukasz Wielgosz, the Avalon Foundation's board representative.

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