FM newsroom – office market. According to an analysis by Cushman & Wakefield, by the end of 2024, the Polish office market demonstrated stable demand and a revival in investment activity. Leasing activity in Warsaw and regional cities remained at the 2023 level, while development activity continued to be subdued. In contrast, the capital market rebounded, with office investment volume reaching €1.64 billion, and Warsaw recording more than a threefold increase.
Limited Development Activity
At the end of Q4 2024, the total office stock across Poland’s nine largest markets approached 13.1 million sqm, according to Cushman & Wakefield Marketbeat analysis. The supply of new office space barely exceeded 228,000 sqm, with the majority delivered in Warsaw, Wrocław, and Katowice. The largest projects completed included Lincoln Property Company’s The Form building in Warsaw (29,400 sqm), Cavatina’s Grundmana Office Park A in Katowice (20,700 sqm), and Cavatina’s Quorum Office Park A in Wrocław (18,200 sqm).
Stable Leasing Activity
In Warsaw, total leasing activity reached 740,200 sqm in 2024, representing only a 1% decrease compared to the previous year. Similar trends were observed in regional cities, where total leasing volume amounted to nearly 714,000 sqm, marking a 4% year-on-year decline. IT companies and the service and manufacturing sectors mainly drove demand. Lease renewals accounted for 51% of all transactions, while new leases and owner-occupied agreements made up 46%, and expansions constituted just 3%.
Vacancy Rates show Mixed Trends
By the end of Q4 2024, the average vacancy rate across Poland stood at 14.3%, reflecting a 0.2 percentage point increase from the previous year. In Warsaw, the vacancy rate was 10.6%, representing a slight 0.1 percentage point decrease from the previous quarter. In regional cities, vacancy rate trends varied: decreases were noted in Lublin, Wrocław, and the Tricity region, while increases were observed in Katowice, Łódź, and Poznań.
Stable Rental Rates
Prime office rents in Warsaw’s central districts ranged between €22-26/sqm/month, while in non-central locations, they averaged between €13.50-16.50/sqm/month. In regional cities, rental rates in central locations varied between €12.50-17.00/sqm/month, with new developments and premium locations commanding higher-than-average rents.
Investment Market Recovery in Warsaw
In Q4 2024 alone, Polish office investment volume exceeded €633 million, bringing the annual total to nearly €1.64 billion. In Warsaw, office investments reached €1.34 billion, more than tripling compared to the previous year and coming just 5% below the five-year average.
