Despite a noticeable drop in the volume of newly delivered office space across Poland’s eight major regional cities, tenants remain active and continue to seek modern workspaces. This is one of the key takeaways from the latest report “At a Glance – Office Market in Regional Cities, Q1 2025” published by BNP Paribas Real Estate Poland. The data shows that gross demand remains stable, with growing interest in high-quality office space—particularly in Kraków, Wrocław, and the Tricity area.
Tenant Activity on the Rise
By the end of Q1 2025, total modern office stock in Poland’s eight major regional markets reached 6.76 million sqm. Kraków leads the pack with 1.83 million sqm, representing 27% of the total supply. Wrocław ranks second with 1.36 million sqm (20%), followed by the Tricity with 1.06 million sqm (16%).
From January to March 2025, 177,000 sqm of lease transactions were recorded—up 27% year-over-year. Kraków remained the most in-demand market with 56,000 sqm leased (32% share), followed by Wrocław with over 43,000 sqm (25%) and the Tricity with 26,000 sqm (15%). Higher demand compared to Q1 2024 was also observed in Katowice, Poznań, and Lublin.
According to BNP Paribas Real Estate Poland, renewals dominated the leasing structure in Q1 2025, accounting for 48% of gross demand. New leases made up 43%, while expansions represented the remaining 8%.
“Lease renewals often go hand-in-hand with downsizing. We expect a redefinition of the hybrid work model in the coming quarters, which may lead to a stronger return to offices and, in turn, a boost in demand across regional office markets,” said Małgorzata Fibakiewicz, Head of Office Leasing at BNP Paribas Real Estate Poland.
Major transactions included an 8,400 sqm lease renewal in the Business Garden II complex (Building K) in Wrocław by a confidential tenant, and a new 7,200 sqm lease in Kraków’s DOT Office C. Notably, three of the five largest transactions occurred in Wrocław.
New Supply Hits Historic Low
New office completions in Q1 2025 totaled just 2,400 sqm—the lowest quarterly increase in the history of regional office markets in Poland. The new space was delivered in Poznań as part of the Dymka188 project developed by Dom Medialny Św. Wojciech.
While a few individual buildings are expected to be completed in the coming months, overall development activity remains restrained, largely due to the persistently high vacancy rates discouraging new investment.
By the end of March 2025, 1.18 million sqm of office space was immediately available, translating into an average vacancy rate of 17.5%. Vacancy declined in Kraków and Katowice, but rose by more than one percentage point in Poznań and Wrocław. Łódź reported the highest vacancy at 22.3%, while Szczecin recorded the lowest at 8.0%.
BNP Paribas Real Estate analysts note that most vacant stock is in buildings over 10 years old, and expect absorption to take 3–5 years.
Rents and Operating Costs
In regional cities, headline rents in Class A buildings ranged from €12–17/sqm/month, while top-tier properties in prime locations reached €19.50–23/sqm/month. Poznań, Kraków, and Wrocław reported the highest rent levels.
Service charges across all regional cities stayed below PLN 37/sqm/month, depending mainly on building efficiency and management quality.
Office Design Evolves with Work Culture
At the end of Q1 2025, approximately 310,000 sqm of office space was under construction. The largest ongoing development is Quorum Office Park B in Wrocław (53,000 sqm), scheduled for delivery in Q2 2025. Other major projects include AND2 in Poznań (37,000 sqm, developed by Von der Heyden Group) and Tischnera Green Park 1 in Kraków (24,000 sqm, developed by Stalprodukt).
New developments focus on employee well-being and workplace experience, with design elements inspired by home environments, such as:
- Lounge furniture (beanbags, hammocks, armchairs)
- Game rooms and relaxation areas
- Spaces for collaboration and informal interaction
“Office space should promote well-being and a sense of belonging. Elements like hammocks, game rooms, and cozy seating can foster community and boost engagement. People are more motivated when they feel part of a bigger mission,” said Dorota Mielke, Deputy Director of Office Leasing at BNP Paribas Real Estate Poland.
Source: CEO.com.pl
