The first half of 2025 on the Warsaw office market saw stable growth in supply and moderate growth in demand, alongside a slight rise in the vacancy rate to 10.8%. The modern office space in the capital has exceeded 6.3 million sqm, with notable deliveries including prestigious projects in the Rondo Daszyńskiego area and the new headquarters of CD Projekt. The investment market maintained good health, with transactions totaling over €216 million. At the same time, the leasing market is showing a shift toward stronger landlord positions, leading to rising rental rates and reduced tenant incentives. The future market outlook points to long-term leases, growing operating costs, and decreasing availability of large office spaces.
MARKET IN NUMBERS
- Modern office space stock (sqm): 6.33 million
- New supply (sqm): 85,200
- Under construction and renovation (sqm): 140,500
- Demand (sqm): 301,400
- Vacancy rate: 10.8% (up 0.3 percentage points quarter-on-quarter)
OFFICE SUPPLY
In the first half of 2025, three office projects were delivered:
- The Bridge (51,800 sqm) and Office House (27,800 sqm), both located near Rondo Daszyńskiego,
- and the new CD Projekt headquarters (5,600 sqm) in the Eastern office zone.
There is a growing trend of converting office buildings into new uses, mostly residential, often involving extensive modernization or complete reconstruction.
Developer activity remains moderate but stable, with nearly 90% of new space being developed in central locations.
DEMAND AND VACANCY
The Central, Służewiec, and CBD office zones remain the most attractive for tenants, accounting for 80% of all leased space in Warsaw.
While new leases (including owner-occupier agreements) dominate demand structure, renegotiations are gaining importance, representing over 40% of all leased space in the capital.
Vacancy slightly increased — to 7.8% (up 0.4 pp quarter-on-quarter) in central zones and to 13.3% (up 0.3 pp quarter-on-quarter) in non-central zones.
Of the over 680,000 sqm of available office space across Warsaw, the largest vacancies are in Służewiec (over 223,900 sqm) and the City Centre (over 155,800 sqm).
LEASING CONDITIONS
Spaces on the top floors command higher rents, exceeding the average rent in Class A buildings (over €30/sqm/month).
A clear shift toward a “landlord’s market” is observed, where landlords dictate leasing terms and tenant incentives significantly decrease.
Due to the end of the settlement period, average operating costs increased by 3% quarter-on-quarter.
- Central locations (Class A buildings): €22.00–28.00/sqm/month
- Outside the center (Class A buildings): €16.00–19.50/sqm/month
- Average operating cost: PLN 28.00/sqm/month
| Office Zone | Supply (sqm) | Demand (sqm) | Vacancy Rate (%) |
|---|---|---|---|
| Centre | 1.91 million | 102.8 thousand | 8.1% |
| Służewiec | 1.06 million | 72.8 thousand | 21.1% |
| Central Business District (CBD) | 994 thousand | 63.4 thousand | 7.1% |
| Jerozolimskie Corridor | 763 thousand | 21.1 thousand | 11.4% |
| Mokotów | 394 thousand | 6.4 thousand | 5.4% |
| East | 292 thousand | 14.1 thousand | 9.6% |
| Żwirki i Wigury | 260 thousand | 7.9 thousand | 17.7% |
| West | 209 thousand | 4.5 thousand | 9.5% |
| Puławska Corridor | 197 thousand | 3.5 thousand | 6.1% |
| North | 126 thousand | 3.5 thousand | 7.5% |
| Ursynów, Wilanów | 123 thousand | 1.4 thousand | 7.3% |
Source: Avison Young
OFFICE INVESTMENT MARKET – H1 2025
The Polish office market closed the first half of 2025 with an investment volume of €411 million, representing 24% of the total investment volume in Poland.
The Warsaw office market recorded 10 finalized transactions totaling over €216 million, including 2 core deals.
The largest transaction was the purchase of the Wronia 31 building in Warsaw by Uniqa Real Estate.
Another core deal in Warsaw was the sale of Plac Zamkowy – Business with Heritage.
Polish capital accounted for 44% of the volume in the Warsaw office sector.
WHAT NEXT?
Property owners continue to prefer long-term leases — 7-year contracts are becoming standard.
Operating costs are expected to rise due to upcoming recalculations.
Availability of office modules larger than 5,000 sqm is expected to be limited, becoming increasingly rare or even unavailable on the market.
Author: Agnieszka Bykowska, Research Analyst at Avison Young
Source: ceo.com.pl
