Warsaw District of Służewiec Is Still Attractive to Tenants

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 office projects

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.

New tenants in Służewiec

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.

Changing public space, new residential investments and hotels

According to Mateusz Strzelecki, Służewiec has got its momentum again. - There is an influx of new tenants, and the companies present in the area decide to extend the lease. In 2016, contracts for leasing over 100,000 sq m of offices were signed in Mokotów. Moreover, the experts argue that the large demand for space, which is still stable in the region, also confirms the declining vacancy rate.

- This is due to the improvement of infrastructure accompanying the office buildings. Residential projects are emerging between the Służewiec office buildings. In addition, the industrial part of Służewiec has finally gained the interest of investors from the hotel sector, who are planning to implement two investments in this area - adds Mateusz Strzelecki.

Last year, over 1000 new apartments were launched onto the Służewiec market. Residential projects also provided commercial space for retail and catering. This makes the country's largest business center gain more features and turn into a place to live, not just to work.

Changes in Służewiec also include public space. Investors are taming ‘Mordor’ by creating public space, where people working in this part of the city and residents can meet and spend time in pleasant surroundings.

Transport is improving

In Strzelecki's opinion, the improvement of the situation in Służewiec will be mostly influenced by the traffic changes, including the reconstruction of Marynarska Street and the extension of Suwak Street from Domaniewska to Cybernetyki Street along the railroad tracks. - By 2019, Woronicza Street will also be extended towards Żwirki i Wigury Steet – enumerates Walter Herz specialist.

In addition, according to Mateusz Strzelecki, the situation will also be improved by the new tram track at Wierzbno station. It will allow for alternate tram traffic between the metro and Służewiec, which will significantly increase the line capacity. There will also be a new tramway running from Metro Wilanowska to Galeria Mokotów. Transportation accessibility of the district will also be increased by modernization and extension of the railway line leading from Służewiec to Piaseczno. The plans also include the development of bicycle paths and introduction of new bus lines.

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Warsaw District of Służewiec Is Still Attractive to Tenants

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