The international real estate advisory firm Cushman & Wakefield has summarized investor activity in Poland’s office property market for the third quarter of 2025. During this period, the sector recorded transactions totaling €474 million, marking a strong resurgence of the office market. The firm forecasts that the total annual volume could reach as much as €1.4 billion by the end of the year.
Offices Regain Momentum
In the third quarter alone, twelve office transactions were finalized, amounting to €474 million — a quarter-over-quarter increase of more than 100%. Warsaw remains the primary focus for investment funds, accounting for 74% of total office investment volume since the beginning of the year.
“Given the scale of ongoing investment processes, we forecast that by the end of the year, transaction volumes in this segment will reach between €1.2 and €1.4 billion. This is a clear signal that institutional capital is returning to the office market. Such assets — especially modern, well-leased properties in prime locations — are perceived as safe and long-term portfolio diversification tools,” explains Marcin Kocerba, Partner, Capital Markets Department, Cushman & Wakefield Poland.
The largest transaction during the quarter was the acquisition of a 50% stake in Mennica Legacy Tower by the Mennica Polska Group for €180 million. Another significant deal was Ghelamco’s sale of the Vibe office building to Manova Partners for approximately €70 million. Other notable transactions included Wronia 31 (purchased by Uniqua Real Estate) and High 5ive I & II (acquired by Sterna Real Estate AB).
Banks Focus on Quality
The lending appetite of banks toward the office sector varies, with improved financing conditions for prime Warsaw assets, stable parameters for similar properties in regional cities, and more cautious terms for older buildings with vacancies or shorter average lease durations.
A slight decline in vacancy rates, driven by low new supply and stronger tenant sentiment, is boosting optimism among both investors and lenders. Notably, when financing acquisitions of older buildings, banks increasingly offer “decarbonization loans” to fund upgrades that bring properties in line with ESG standards.
“Banks currently show more appetite for financing office acquisitions rather than refinancing existing assets. Their willingness to finance new construction depends heavily on pre-let levels, developer credibility, and the planned exit strategy,” explains Mira Kantor-Pikus, MRICS, EMBA, Head of Capital, Debt, and Alternative Investments Advisory at Cushman & Wakefield.
Financing Conditions
For existing prime office buildings, average financing currently stands at 50% of market value, with annual amortization of 2.5–3% and a balloon payment at maturity. Loan tenures are typically up to five years, depending on the building’s weighted average lease term (WALT).
Marginal declines in lending spreads for top-quality assets have been observed, with margins now in the range of 2.0–2.25% per annum. Arrangement fees generally range from 0.5% to 1% of the loan amount. The base rate is typically 1M or 3M EURIBOR, with around 70% of loan exposure hedged via interest rate swaps (IRS) or options.
Source: CEO.com.pl – “Offices Back in the Spotlight for Investors: Strong Rebound in Q3”
