Market Report 1Q & 2Q 2004

Polish Properties has this week released summary reports on the Office and Warehouse markets in Warsaw for the first half of 2004.

Both reports are mildy positive about both sectors. The office market is at last climbing out of several years of decline albeit vacancy is still at a high 19per cent in the CBD. Rents have bottomed out but a rise is not predicted for some time.

The warehouse market presents a much brighter picture with vacancy at under 10 per cent. Rents have also bottomed out. Development prospects in this sector are good with demand from food retailers, multinational companies and third party logistics providers fuelling the demand for large "logistics" warehouses outside of Warsaw.