Krakow’s office market entered 2026 with weaker tenant activity and limited new supply. Gross demand reached 73,000 sqm in the first half of the year, down 58% year on year, while net take-up declined by 27% to 36,000 sqm. Despite the slowdown, Krakow remains Poland’s largest regional office market, with 1.87 million sqm of modern office stock. The latest AXI IMMO data also show growing market polarisation, with central locations recording substantially lower vacancy rates than buildings outside the city centre.
Office demand in Krakow falls sharply
The Krakow office market operated under noticeably weaker tenant activity in the first half of 2026. Gross take-up amounted to approximately 73,000 sqm, representing a 58% decline compared with the same period a year earlier.
Net demand, which excludes lease renewals, reached around 36,000 sqm and fell by 27% year on year.
According to AXI IMMO’s latest report on the Krakow office market, the lower transaction volume is being accompanied by increasing polarisation between the most attractive central locations and office buildings situated outside the city’s main business districts.
Manufacturing companies accounted for the largest share of demand, at 31%. Financial services companies represented 20% of leased space, while the IT sector was responsible for another 15%.
Tenants increasingly focused on modern office buildings offering high-quality space, convenient public transport access and a broad range of services and amenities.
BBH signs one of the largest office leases
One of the largest transactions completed in Krakow during the first half of 2026 was a new lease signed by Brown Brothers Harriman for 13,700 sqm in the WITA C building.
Other significant transactions included Akamai’s 5,400 sqm lease renewal at Centrum Biurowe Vinci and PepsiCo’s 5,400 sqm renewal and expansion at Brain Park A.
Karolina Słysz, Head of Regional Markets, Office Agency at AXI IMMO, said the year-on-year decline in demand had been difficult to avoid because activity in the comparable period of 2025 had been exceptionally strong.
“The decline in demand in the first half of 2026 compared with the first half of the previous year was inevitable due to the very strong result recorded in the comparison period, and the market was unable to maintain that pace. Despite lower tenant activity, Krakow remains the largest and most developed office market among Poland’s regional cities, while demand for modern space in central locations remains high,” Słysz said.
Krakow office stock reaches 1.87 million sqm
At the end of June 2026, Krakow had approximately 1.87 million sqm of modern office stock, maintaining its position as Poland’s largest regional office market.
Developers completed close to 34,000 sqm of new office space during the first six months of the year.
New supply included office space within Echo Investment’s mixed-use WITA project as well as the Fabryczna Office Park B7 building delivered by Inter-Bud.
Development activity, however, remains relatively limited.
Around 37,000 sqm of office space is currently under construction, approximately 45% less than a year earlier.
The largest project currently being developed is Tischnera Green Park 1. Other schemes under construction include Soneta and the refurbished Loft Park B building.
Vacancy rate rises to 19%
Lower leasing activity has translated into a further increase in available office space.
At the end of the first half of 2026, Krakow’s average office vacancy rate stood at 19%, up 1.7 percentage points from a year earlier.
However, the headline figure masks substantial differences between individual parts of the city.
The vacancy rate in central locations was only 10.3%, compared with as much as 21.9% in non-central office districts.
The difference highlights an increasingly important trend in Krakow’s office market: companies are showing a clear preference for offices that provide easier access to public transport, restaurants, services and other urban infrastructure.
Elżbieta Golik, Associate Director at AXI IMMO, said the divide between different segments of the market is becoming increasingly pronounced.
“The polarisation of Krakow’s office market is becoming increasingly visible. Buildings located in the city centre, providing access to a wide range of services and public transport, are significantly more successful in attracting tenants than properties located outside the city’s main business areas,” Golik said.
Prime offices retain their pricing power
Despite rising vacancy levels and stronger competition between office buildings, asking rents have so far remained relatively stable.
At the end of June 2026, asking rents in Krakow ranged from approximately EUR 10 to EUR 19 per sqm per month.
The highest rents were recorded in central locations and in modern projects offering better specifications, amenities and services for employees.
This suggests that growing vacancy levels do not affect all buildings equally. Older or less conveniently located office properties face stronger pressure, while modern developments in prime locations remain relatively resilient.
Office market becoming increasingly polarised
AXI IMMO expects the polarisation of Krakow’s office market to continue.
In the short term, companies are likely to increasingly relocate to more attractive locations while simultaneously consolidating the amount of office space they occupy.
The quality of the working environment and the range of amenities available to employees are also expected to play a greater role in leasing decisions.
Emilia Trofimiuk, Research Manager at AXI IMMO’s Research and Market Analysis Department, expects tenant activity to gradually improve over the coming quarters.
“We expect tenant activity to gradually increase in the coming quarters. At the same time, the trend towards space consolidation and the search for offices better suited to hybrid working models will continue, particularly in the highest-quality projects,” Trofimiuk said.
The combination of limited development activity and stronger demand for prime office locations may gradually improve the balance of Krakow’s market. However, the growing difference between high-quality central buildings and older or peripheral office properties is likely to remain one of the most important trends shaping the market in the coming quarters.
Source: AXI IMMO, Krakow Office Market – H1 2026
