- Office space supply remains scarce across all major markets in Poland, while tenant demand continues to rise steadily.
- In Q1 2025, companies leased 25% more office space on Poland’s key markets compared to the same period in 2024.
- In Warsaw alone, office space demand exceeded 160,000 sqm in the first quarter, with new leases dominating the market. In regional markets, demand was even higher — nearly 180,000 sqm of space was leased, over half of which were renegotiations of existing contracts.
“Tenants continue to prefer new buildings, valuing high standards and prime locations. In Warsaw, the majority of leased office space last quarter was in modern buildings located in the city’s central area. Lease decisions are driven primarily by financial conditions, location, and convenient access to public transportation,” said Mateusz Strzelecki, Partner and Head of Tenant Representation at Walter Herz.
He added, “We are seeing a slowdown in investment activity and minimal new supply compared to the market boom years. We estimate that Warsaw’s office stock will grow by only around 135,000 sqm this year. At the same time, outdated and inefficient properties are being withdrawn from the market. Lower interest rates and easier access to financing could help unlock more development activity, especially as investor interest in top-tier assets grows. Poland continues to host some of the largest office transactions in Europe.”
Minimal New Deliveries — Mostly in Warsaw
The first quarter of 2025 saw the lowest amount of newly completed office space in two decades. Warsaw’s office stock — now totaling 6.39 million sqm — grew by just one project, adding only 5,600 sqm. One additional building was completed in Poznań.
According to Walter Herz, roughly 210,000 sqm of office space is currently under construction in Warsaw. Two major buildings — The Bridge (51,400 sqm) and Office House (31,100 sqm) — are scheduled for completion this year. Other significant developments underway include Upper One (35,900 sqm), Studio II Phase (26,600 sqm), Vena (15,400 sqm), Skyliner II (22,000 sqm), and V Tower (26,200 sqm), which is undergoing modernization.
Kraków and Wrocław Lead Among Regional Markets
Kraków and Wrocław remain the most dynamic regional office markets. Kraków, Poland’s second-largest office hub with 1.81 million sqm of total stock, currently has 86,000 sqm under construction. Demand in Kraków reached around 57,000 sqm in Q1 2025.
Wrocław, with a stock of 1.42 million sqm, recorded approximately 44,000 sqm of leases in the first quarter, and 27,000 sqm is under construction.
Stable Rents and Vacancy Rates
Rental prices and operating costs have remained stable across Poland since the end of 2024. In central Warsaw, rents range from €18 to €27 per sqm/month, while non-central areas offer rates from €10 to €17. In regional markets, rents range from €9 to €19.5 per sqm/month.
Outside of Warsaw, the average office vacancy rate in major cities exceeds 17%. A downward trend is visible in Kraków and Katowice, while Wrocław and Poznań are seeing a rise in vacant space. In Warsaw, the vacancy rate is now slightly above 10% and falling. However, there is a growing gap between the city center — where vacancy is around 7% — and outer zones such as the Służewiec business district, where vacancies exceed 20%.
Source: CEO.com.pl – “Popyt na biura rośnie, nowa podaż pozostaje ograniczona”
