The start of 2025 has brought a notable rebound for the Warsaw office market, characterized by a rise in tenant activity and limited developer output, according to Savills Poland’s latest report, “Warsaw Office Market Q1”. The report highlights that such a low quarterly delivery of new office space is an unusual occurrence.
Demand Grows, Especially in Key Central Locations
As of the end of March, Warsaw’s total modern office stock reached 6.27 million sq m, nearly half of which is concentrated in central areas, including 1.01 million sq m in the Central Business District (CBD). These central zones remain the primary focus of leasing activity, accounting for nearly 101,000 sq m out of over 160,500 sq m in total transaction volume. Tenant activity rose by 16% year-on-year compared to Q1 2024.
The low level of new supply also impacted net absorption, which, although more than double that of the same quarter last year, amounted to just 12,200 sq m—about one-third of the average net absorption recorded in Q1 from 2020 to 2024.
New lease agreements made up 61% of all transactions, while renewals dropped from 36% in Q1 2024 to 25%, signaling a positive market outlook. Expansion leases accounted for 9%, and pre-leases for 5% of demand.
Vacancy Rates Drop, Especially in Central Areas
The overall vacancy rate in Warsaw declined to 10.5%, while central zones saw a decrease to just 7.4%. In contrast, the rate outside the center stood at 13.0%. With new supply shrinking and only 212,000 sq m currently under construction (down 27% year-over-year), location and quality have become increasingly important factors in tenant decision-making. Notably, 93% of ongoing developments are located in central districts, offering high standards and access to public transit.
Major upcoming projects include:
- The Bridge (Ghelamco, 52,000 sq m, opening soon)
- Upper One (Strabag, 35,000 sq m, due Q4 2026)
- Office House (Echo Investment, 31,000 sq m, due Q2 2025)
“In an optimistic scenario, we estimate that Warsaw’s office market could expand by around 340,000 sq m by the end of 2027. The pace will depend on factors such as project financing and the volume of pre-lease agreements,”
says Daniel Czarnecki, Head of Landlord Representation at Savills.
Rising Rents and Premium Demand
Prime office rents in central Warsaw remain at €22.50–26.00/sq m/month, with top-tier buildings exceeding €27/sq m/month. In the Służewiec business area, more competitive rents range between €13.25 and €15.00/sq m/month. Given the declining availability of high-end offices and limited new supply, upward pressure on rents is expected.
“Although the beginning of the year was marked by cautious development activity, this presents an opportunity to rethink the role of office spaces. We’re seeing growing interest in offices that not only meet operational needs but also support organizational culture and team engagement,”
notes Jarosław Pilch, Head of Tenant Representation at Savills.
“Flexible spaces and well-designed coworking hubs are increasingly popular among younger generations. Those who can combine prime location with adaptability to emerging trends will have a competitive edge.”
A Market Defined by Stability, Quality, and Evolving Expectations
Despite ongoing challenges like muted development activity and rising tenant expectations, the data from Q1 2025 suggests a trend toward stabilization. A balanced supply, falling vacancy rates, and strong demand for premium, well-located offices are positive signs for the Warsaw office sector in the months ahead.
Source: ManagerPlus.pl
