According to the report by the consulting firm Newmark Poland, Office Occupier – Regional Office Market, the first quarter of 2025 in regional office markets (Kraków, Wrocław, Tricity, Katowice, Poznań, Łódź, Lublin, Szczecin) was characterized by stable tenant demand, with most tenants opting to renegotiate existing leases. At the same time, an increase in expansion activity was noted, while office space availability remained significant. Low development activity is concentrated mainly in three cities—Kraków, Poznań, and Wrocław—which together account for 68% of office space currently under construction.
At the end of March 2025, the largest regional markets outside Warsaw held a lead of around half a million square meters over the capital in terms of total office stock—over 6.7 million sqm versus nearly 6.3 million sqm in Warsaw.
In Q1, only 2,400 sqm of new office space was delivered in Poznań—the weakest result since regional market statistics began. Developer activity remains low in regional cities. At the end of March 2025, nearly 193,000 sqm was under construction—almost 13% less than in Q4 2024 and nearly 73% less than the 10-year annual average of about 711,000 sqm. Of this volume, 68% is concentrated in Kraków, Poznań, and Wrocław.
“According to developer forecasts, new supply in regional cities throughout 2025 will not exceed 70,000 sqm, the lowest volume of new supply since 2006. The slowdown in Poland’s office market in terms of new developments is likely to continue in the coming quarters—mainly due to the high vacancy rates in existing buildings and tenants’ tendency to remain in current locations,” says Karol Wyka, Managing Director of the Office Department at Newmark Poland.
Demand for office space in major regional markets remains stable. In Q1 2025, tenants signed leases totaling nearly 176,900 sqm—almost 20% lower than the previous quarter but more than 27% higher than the same period last year. None of the finalized transactions exceeded 10,000 sqm, and the average lease size was about 1,000 sqm—an increase of nearly 10% compared to Q1 2024.
“From January to March 2025, the highest leasing volume was recorded in Kraków, with 56,600 sqm leased. Wrocław followed with over 43,800 sqm of signed agreements. In the Tricity, tenant activity reached nearly 26,400 sqm. These three cities accounted for more than 72% of total demand registered in regional markets in Q1,” adds Wyka.
Since Q4 2023, renegotiations and lease renewals have accounted for over 45% of total demand in main regional markets. In the first three months of 2025, this share was 47.6%. New leases ranked second, representing 39.6% of total volume. The remaining 12.8% comprised expansions (8.4%), pre-lets (3.0%), and owner-occupier transactions (1.4%).
“A positive sign is the increase in leased space through expansions in Q1 2025 to nearly 15,000 sqm—almost 70% of all such agreements signed in 2024 (22,000 sqm). The IT and business services sectors accounted for the largest share of demand, at 18% and 16% respectively. Manufacturing ranked third with a 14% share,” says Wyka.
At the end of March 2025, the vacancy rate in main regional markets stabilized at a relatively high level of 17.5%. It may gradually decrease in upcoming quarters due to limited developer activity and stable tenant demand. In Q1 2025, vacancy fell by 0.3 percentage points both quarter-on-quarter and year-on-year. Vacancy rates exceeded 20% in Łódź, Katowice, and Wrocław. The total volume of available office space across eight major regional markets reached 1.18 million sqm.
“Rents for prime office spaces have remained stable and relatively high (EUR 16.00–18.00 per sqm per month) for several quarters, especially in buildings with high environmental certification ratings or in prestigious locations. Lower rents apply to tenants in buildings with lower standards or high vacancy, some of which are temporarily withdrawn from the market for modernization or possible conversion, e.g., into residential use,” explains Agnieszka Giermakowska, Director of Market Research and Advisory and ESG Leader at Newmark Poland.
