According to the latest “Review – Warsaw Office Market Q2 2025” by BNP Paribas Real Estate Poland, the capital’s office sector experienced its strongest quarter of new supply in three years. At the same time, the number of projects under construction dropped to a historic low, signaling a possible future shortage of modern office space in prime locations.
Record-High New Supply – But Fewer New Projects
Between April and June 2025, nearly 80,000 sqm of office space was delivered to the market – the highest figure since the end of 2022. Major projects completed during the quarter included:
- The Bridge (47,000 sqm, Ghelamco)
- Office House (27,800 sqm, Echo Investment)
- Nowa Bellona (4,800 sqm)
All three are located near Rondo Daszyńskiego, the heart of Warsaw’s office hub.
“It’s the strongest quarterly delivery in three years! But at the same time, developers have significantly reduced new starts. By the end of June, only around 150,000 sqm of office space was under construction – the lowest level in years. This means that in the coming years, modern office space may be in short supply, especially in prime locations,” comments Małgorzata Fibakiewicz, Senior Director, Office Leasing Department at BNP Paribas Real Estate Poland.
Key ongoing projects in central zones include:
- Upper One (35,500 sqm)
- V Tower (30,800 sqm)
- Studio A (26,600 sqm)
Steady Tenant Activity and Central Zone Dominance
Tenant activity remained stable compared to previous quarters. In Q2 2025 alone, total gross take-up reached 154,700 sqm. For the first half of the year, gross demand exceeded 300,000 sqm, down 5% year-on-year.
Demand continues to be heavily concentrated in central Warsaw and Służewiec. Lease renewals dominated Q2 transactions, accounting for 59% of all signed contracts. New leases made up 34%, while expansions represented only 6% of volume.
Pre-let agreements remain rare, with just 4.1% of total activity in Q2 and 16.2% over the past 12 months, reflecting tenants’ cautious approach to long-term commitments.
The largest transaction of Q2 was a lease renewal by Polkomtel, extending its 22,000 sqm office in the Multimedia House Plus in Służewiec. Other notable transactions included:
- A confidential lease in Generation Park X (18,000 sqm, Center-West)
- PZU’s lease renewal at Konstruktorska Business Center (6,500 sqm, Służewiec)
All five of the largest deals in Q2 were lease renewals, highlighting the market’s conservative sentiment.
Vacancy Rates Decline
As of June 2025, 683,000 sqm of office space was available in Warsaw, bringing the vacancy rate down to 10.8%, a noticeable improvement.
- Central Warsaw saw a drop to 7.8%, down 1.3 percentage points year-on-year
- Non-central zones saw a rise to 13.3%, up 1 percentage point
Służewiec had the highest vacancy rate at 21.1%, while the lowest was recorded in Center-West (5.4%) and Ursynów/Wilanów (7.3%).
Vacancy also varied based on building age:
- New buildings (<5 years): 4.9%
- 6–10 years: 7.0%
- Over 10 years: 13.7%
Stable Rental Rates
Asking rents across Warsaw remain stable, although new developments are commanding slightly higher rates.
“Prime office rents in the center range from €22.50 to €26.00/sqm/month. In new projects under construction, rates may reach up to €28.00/sqm/month. Outside the center, rents range from €14.00 to €18.00/sqm/month. Operating costs can reach up to PLN 40/sqm/month,” notes Ewa Nicewicz, Senior Consultant, Office Leasing Department at BNP Paribas Real Estate Poland.
Outlook: Strong Current Market, Uncertain Future Supply
While Q2 brought a burst of new office supply and consistent leasing activity, the record-low level of new construction raises concerns about future availability, especially in the central zones. Tenant behavior reflects caution and focus on cost management, while developers face uncertainty and high construction costs, delaying new investments.
Source: CEO.com.pl – Warsaw Office Market: High New Supply, Historic Low in New Investments
