FM newsroom – office market, Warsaw. Poland’s office market began 2025 with robust leasing momentum across both Warsaw and regional cities. Despite this upswing in demand, the sector faces a prolonged construction slowdown, with a meaningful recovery in new office supply unlikely before 2027.
Strong Leasing Activity Across the Board
In Q1 2025, Poland’s largest office markets recorded approximately 338,000 sqm of leasing activity, a 22% year-on-year increase. Warsaw contributed over 160,000 sqm, reflecting a 16% annual growth, while regional cities outperformed with nearly 177,000 sqm transacted, marking a 27% rise, Property Forum reports.
Leasing activity in regional markets was fueled largely by the IT, business services, and manufacturing sectors. Renewals made up 48% of leasing volume, with new leases accounting for 43%. Among the largest transactions were renegotiations and expansions in Wrocław, including 8,450 sqm and 6,700 sqm deals at Business Garden complexes, and AXA XL’s 5,700 sqm lease expansion at Pegaz.
Construction Pipeline Shrinks Sharply
Office development in Poland remains at historic lows. Only 8,000 sqm of new space was delivered in Q1—the lowest quarterly supply since 2005. The two completions included CD Projekt’s 5,600 sqm headquarters in Warsaw and Dymka 188 (2,400 sqm) in Poznań.
Total office stock across the country stood at just over 13 million sqm. According to Ewa Derlatka-Chilewicz, Head of Research at Cushman & Wakefield, only 175,000 sqm of new office space is expected in 2025, with just 100,000 sqm forecast for 2026. A meaningful rebound in supply is not expected before 2027.
Development pipelines reflect this slowdown. In Warsaw, active construction has dropped from nearly 750,000 sqm in early 2020 to 180,000 sqm. Regional cities are also witnessing reduced activity, with 200,000 sqm under development, down sharply from 850,000 sqm pre-pandemic.
Vacancy Trends: Mixed but Stabilising
At the close of Q1 2025, Poland’s overall office vacancy rate stood at 14.1%, a slight 0.2 percentage point drop from the previous quarter. Warsaw’s vacancy rate declined to 10.5%, while regional cities showed a more varied picture.
Katowice and Kraków saw decreasing vacancies, but Poznań and Wrocław experienced an increase of more than 1 percentage point. According to Cushman & Wakefield’s analyst Vitalii Arkhypenko, the total available office space across all markets reached 1.84 million sqm, a 2% decrease from Q1 2024.
Rental Rates Holding Steady Amid Inflationary Pressure
Office rental rates remained generally stable, especially in central locations. In Warsaw, prime rents stood at €24.00–27.00/sqm/month in central zones, and €15.00–18.50/sqm/month in non-central areas.
New developments in prime locations commanded the highest rental rates, while rents in existing high-occupancy buildings rose primarily in line with inflation-linked indexation.
In regional cities, prime rents ranged between €13.00 and € 17.00/sqm/month, with premium properties fetching higher rates. Jan Szulborski of Cushman & Wakefield noted that rising construction, fit-out, and financing costs continue to put upward pressure on rental expectations, particularly in ongoing developments.
Q1 2025 highlights a dual narrative in Poland’s office market: while demand is clearly accelerating, especially in regional hubs, the supply pipeline is constrained, potentially setting the stage for future imbalances. Tenants remain focused on quality space in central locations, while developers remain cautious amid high costs and economic uncertainty. The sector now looks toward 2027 for its next significant growth phase.
