According to the report “Office Occupier – Wrocław Office Market” by consulting firm Newmark Polska, Wrocław is the third-largest office market in Poland, following Warsaw and Kraków. In 2024, tenant activity in the capital of Lower Silesia remained stable, exceeding the 10-year average. Companies from the IT, business services, and manufacturing sectors accounted for nearly 70% of total demand. Meanwhile, both new office supply and developer activity remained low due to a significant amount of vacant space in existing office buildings.
Market Overview and Supply Trends
At the end of Q4 2024, Wrocław’s total modern office space reached nearly 1.4 million sqm, representing a 2% year-on-year (YoY) increase. Last year, developers delivered a total of 38,350 sqm of new office space, spread across only three office buildings, including:
- Quorum Office Park A (18,200 sqm, North/East Zone)
- B10 (14,100 sqm, Legnicka/Strzegomska Zone)
“This is the second-lowest level of new office supply since 2012, just after 2021, when Wrocław’s office stock increased by less than 22,000 sqm. If all currently planned projects are completed on schedule, new supply in 2025 will slightly exceed 34,000 sqm, making it similar to last year,” says Karol Wyka, Managing Director of Office Space at Newmark Polska.
The low level of new office supply is due to a slowdown in developer activity. As of December 2024, 34,350 sqm was under construction, representing a 50% decline compared to 2023—the lowest level in Wrocław’s office market history.
“We do not expect a significant increase in developer activity in the near future, mainly due to the high availability of vacant office space in existing buildings. However, developers are closely monitoring market conditions and are prepared to launch new projects quickly,” Wyka adds.
Tenant Demand and Key Office Zones
Wrocław has long been an attractive location for international companies, particularly in the modern business services sector. According to ABSL data, 234 business service centers were operating in Wrocław in Q1 2024, employing a total of 66,200 people.
“High demand for office space in Wrocław has been consistent, exceeding 110,000 sqm annually since 2015. In 2024, tenant activity totaled over 146,450 sqm, reflecting an 11.5% YoY decline, but still 4% above the 10-year average (140,500 sqm). The most popular office zones among tenants remain:
- Legnicka/Strzegomska
- Main Railway Station/Powstańców Śląskich
- Śródmieście (City Center) and Rynek (Market Square)
These areas accounted for nearly 75% of total demand in 2024,” explains Anna Domańska, Associate for Lower Silesia at Newmark Polska.
Lease Transaction Breakdown in Wrocław (2024)
- 57% – Lease renewals and renegotiations
- 36% – New leases
- 5% – Owner-occupied transactions
- 2% – Expansions
Companies from the IT, business services, and manufacturing sectors accounted for 69% of total lease volume, with sector shares as follows:
- IT – 37%
- Business services – 18%
- Manufacturing – 14%
Vacancy Rates and Future Outlook
At the end of December 2024, Wrocław’s office vacancy rate stood at 19.3%, reflecting:
- A 0.4 percentage point (pp) decrease compared to Q3 2024
- A 1.1 pp increase compared to Q4 2023
“We anticipate a gradual decline in vacancy rates in the coming quarters due to limited developer activity and the continued absorption of vacant office space. By the end of last year, nearly 266,000 sqm of office space was immediately available for lease in Wrocław, with over **80% located in the three key office zones:
- Legnicka/Strzegomska
- Main Railway Station/Powstańców Śląskich
- North/East Zone,” adds Anna Domańska.
Rental Rates: Stability with Selective Increases Expected
In Q4 2024, base rents for office space in Wrocław ranged from:
- €13.00 to €16.50 per sqm/month
- Prime office rents reached up to €21.00 per sqm/month in central locations (Rynek and Śródmieście)
- Some offices in the South and North/East zones were available for less than €12.00 per sqm/month
Forecasts suggest that base rents will remain stable in the coming quarters.
“Slight rental increases are possible in the most sought-after and attractive locations, as well as in buildings offering modern technological and environmental solutions. This is due to the fact that only 20% of available office space is in high-standard buildings completed within the last five years, totaling less than 55,000 sqm,” concludes Agnieszka Giermakowska, Director of Market Research & Advisory, ESG Leader at Newmark Polska.
Source: ceo.com.pl
