Skanska Begins Construction of $197M Office Tower in Poland
- Nov 13, 2018
Stockholm-based Skanska AB recently kicked off construction of Generation Park Y, an SEK 1.8 billion, or $197.3 million, office property in Warsaw, Poland. The approximately 505,900-square-foot building will rise 459 feet near the Daszyński Roundabout and mark the third and tallest tower in the real estate development company’s approximately 904,200-square-foot Generation Park office campus.
The JEMS Architekci-designed Generation Park, which will ultimately feature three state-of-the-art buildings named to represent three different generations, is the largest office development in Skanska’s Central and Eastern Europe portfolio. The 201,300-square-foot Generation Park X delivered in 2017 and the approximately 197,000-square-foot Generation Park Z is scheduled to open in 2019. Generation Park Y will house its premier office space on 38 floors above a four-story underground parking facility. Like the previous two towers, Generation Park Y is designed to meet the requirements for LEED Platinum certification. The building represents a new era of sorts for Skanska’s activity in the country.
“Generation Park Y is our first high-rise office building in Poland. We are planning more as we speak,” Arkadiusz Rudzki, managing director at Skanska Poland’s office unit, said in a prepared statement. The company’s other high-rise projects in the country are all in Warsaw and include Spark A, one of three buildings at the Spark office complex, and Warsaw One at the ONZ Roundabout downtown. Generation Park Y will make its debut in the first quarter of 2021.
Office wanted in Warsaw
The Warsaw office market is thriving, and the proof is in the numbers. Take-up during the first three quarters totaled approximately 6.8 million square feet, and all signs point to demand reaching a total of roughly 9.2 million square feet by year’s end, according to a report by commercial real estate services firm CBRE. The volume of vacant space in 57 percent of the city’s office buildings is less than 2,100 square feet, while 80 percent of tenants seeking space desire accommodations exceeding 2,100 square feet.
“Decreasing vacancy levels and low supply of new space mean it’s difficult to find desired office space available immediately,” per the report, which is subtitled, “No Immediate Vacancies.”
Image courtesy of Skanska