According to data from Colliers, over 90% of businesses in Poland have adopted a hybrid work model[1]. This has led to a surge in the demand for flexible (flex) office spaces, which align to the changing needs of the workforce and offer shorter commitments. Colliers Flex Guide’24 report reveals that there are currently around 200 such facilities in seven major office markets across Poland, with a combined space of over 400,000 sq. meters.
A revolution in the rules of the game
Flexible office spaces, commonly known as flex or coworking offices, emerged in response to changing tenant needs. Fully equipped and professionally managed, they offer flexible working conditions with short to long-term leases (typically ranging from one month to two years), thereby offering an alternative to conventional rentals typically signed for a period of three to seven years.
The current rental prices for flex spaces range from 575 PLN per month in Wroclaw to 1250 PLN in Tri-City for hot desking offers – a shared office space used by businesses and individuals. In Warsaw, prices range from 700 PLN per month on the outskirts of the city to 1000 PLN per month in more prime locations.
“Flex office market initially began to expand mostly in Warsaw, led by international operators. However, recent years have seen a growing percentage of flex spaces also opening up in major regional markets such as Krakow, Wroclaw, and Tri-City,” says Robert Romanowski, Senior Associate in Office Space Department at Colliers. “Currently, flex spaces only account for about 3% of the overall office space supply in Poland, indicating a still relatively low market saturation and significant room for growth for both new operators as well as those already operating in our market,” adds Romanowski.
New opportunities for office building owners
The Polish flex space market includes both local operators (e.g., Chilliflex, CitySpace, Loftmill, OmniOffice) and international ones (e.g., Brain Embassy, Mindspace, and WeWork). However, in recent years, commercial building owners have also ventured into providing coworking spaces, thereby establishing their own brands. For instance, Skanska opened Business Link, Echo Investment purchased CitySpace, and Cavatina made Quickwork spaces available in their buildings.
“This is a response by office building owners to the growing market demand for this type of offer, which allows for better utilization of space and a diversification of tenant portfolio,” explains Romanowski.
Warsaw takes the lead, Krakow leads in the regions
Among the seven major office markets in Poland, Warsaw stands out with the highest supply of flexible office spaces – 230,000 sq. meter. In the second place is Krakow, with 67,000 sq. meters.
“Looking at the total office space supply of 1.8 million sq. meters in Krakow, flex spaces account for a 4% share, similar to Warsaw. Importantly, the flex space market in the capital of Lesser Poland is the most diverse among the regional markets,” reveals Olga Drela, Associate Director in the Market Research and Advisory Department at Colliers.
The Katowice market has also been growing dynamically. Over the last three years, the city has gained over 12,000 sq. meters of flex space in six locations, bringing the total to 21,000 sq. meters.
In Wroclaw, the total supply of flex spaces increased by almost half within just three years, exceeding 40,000 sq. meters. (which represents a 3% share of the total office supply), while in the Tri-City market, with a total of 25,000 sq. meters, most spaces are located in Gdansk, in business hubs outside the city center.
Poznan’s flexible office space market is still in the early stages of development and currently offers the lowest supply among regional cities – about 10,000 sq. meters. It is dominated by flex offices managed by building owners, who account for over 70% of the supply.
[1] According to the Hybrid and Beyond 2.0 report, published by Colliers Define in 2023.
Source: https://managerplus.pl/przestrzenie-flex-podbijaja-polski-rynek-biurowy-72623
