According to the Office Occupier – Krakow Office Market report by advisory firm Newmark Polska, last year saw record-high tenant activity, with most companies opting to remain in their current locations. This trend is reflected in the 58% share of lease renegotiations in Krakow’s total office demand in 2024. Meanwhile, developers continue to condition the start of new office construction on securing pre-lease agreements. With a still relatively large amount of available space in existing office buildings, tenants can find suitable office spaces in convenient locations without much difficulty.
In 2024, the total modern office space in Krakow surpassed 1.83 million sqm, marking only a 1.3% year-over-year growth. Developers delivered just 24,100 sqm of new office space—over 75% less than the previous year and the lowest figure in the history of Krakow’s office market. More than half of the new supply came from Building C of the Brain Park office complex, offering 13,000 sqm. It was also the only office building exceeding 10,000 sqm completed in 2024.
“In 2025, developers plan to deliver just 10,000 sqm, the lowest figure since records began. Most of the ongoing projects are expected to be completed no earlier than early 2026. The significant availability of office space in existing buildings, combined with the nearly 60% share of lease renegotiations in total demand recorded last year, keeps developer activity at a low level,” said Patryk Kowalkowski, Consultant at Newmark Polska.
Currently, just over 51,000 sqm of office space is under construction—almost 128% more than in 2023 but still 45% below the five-year average of over 93,000 sqm. More than 52% of ongoing office projects are located in the city center, while 48% are in the Southeast zone.
Record-High Tenant Activity in Krakow
In 2024, tenant activity in Krakow reached its highest level ever, with total demand amounting to nearly 267,000 sqm—a 33% increase from 2023 and 36% above the five-year average (~196,000 sqm). Krakow accounted for over 37% of all lease agreements signed across Poland’s major regional office markets. In comparison, Wroclaw, the second-largest regional market, accounted for less than 21% of total transaction volume.
“Krakow continues to attract strong interest from companies in the modern business services and technology sectors. In 2024, IT companies accounted for 31% of total office demand, followed by financial services (18%), manufacturing (14%), and business services (12%). Lease renegotiations dominated the demand structure, making up 58% of transactions. New leases accounted for 37%, while owner-occupied offices and expansions represented 3% and 2%, respectively,” said Anna Madejska, Consultant at Newmark Polska.
Last year, no pre-lease agreements were recorded, which could have provided developers with a strong incentive to start new office investments.
Vacancy Rates and Rental Trends
In 2024, the office vacancy rate in Krakow remained high, ending the year at 19%—an increase of 0.1 percentage points from Q3 2024 but a 0.8 percentage point decrease year-over-year. Tenants currently have over 347,200 sqm of vacant office space available in existing buildings. In the coming quarters, the vacancy rate is expected to gradually decline, mainly due to the limited supply of new office buildings.
“Office rental rates in Krakow remained stable throughout 2024. By the end of December, monthly rents ranged between €13.50 and €15.00 per sqm. In the city center, the highest rents reached €15.50–17.50 per sqm. Tenants continue to favor office buildings located in prime locations, equipped with modern technological solutions,” added Agnieszka Giermakowska, Head of Market Research and Advisory, ESG Leader at Newmark Polska.
Source: CEO.com.pl
