Poland's Office Market: A New Era of Growth for Businesses

 

The Polish office market is witnessing a dynamic comeback, marking a pivotal shift from previous trends of space reduction. Demand for office space is not just growing; it's accelerating, particularly in the country's vibrant regional centers. This resurgence signifies a robust period of expansion as businesses across various sectors look to increase their work areas and secure prime locations, creating an optimistic outlook for the commercial real estate sector.

 

Regional Cities Lead the Charge in Demand

 

Regional cities are now at the forefront of this growth, outperforming even Warsaw in terms of rising demand and the number of projects under construction. While new office investments are generally scarce, the interest in leasing is remarkably high in these markets, with the average leased area steadily increasing. Krakow, for instance, has emerged as a powerhouse, leading regional growth with over 170,000 sqm leased by mid-2025. Following closely are Wrocław with 80,000 sqm and Tri-City with 50,000 sqm. This strong regional performance is largely fueled by the burgeoning IT and business services sectors, which continue to drive significant expansion across these hubs.

 

Key Regional Leasing Highlights (H1 2025):

 

  • Almost 400,000 sqm leased across eight major regional markets (excluding Warsaw), marking a more than 50% increase in demand compared to Q2 2024.
  • Krakow: Over 170,000 sqm leased.
  • Wrocław: 80,000 sqm leased.
  • Tri-City: 50,000 sqm leased.

 

Warsaw's Stable Market and Strategic Decisions

 

In contrast to the rapid regional expansion, Warsaw's office market maintains a stable yet significant presence. The capital saw approximately 300,000 sqm leased in H1 2025, consistent with the previous year's figures. While regional cities might lead in demand growth, Warsaw continues to note a higher new supply, with 85,000 sqm added in H1 2025, including prominent projects like The Bridge and Office House. Planned deliveries such as V-Tower and Studio A are set for H2, contributing to a stable vacancy rate around 10%.

 

Navigating Lease Renegotiations and Relocation Costs

 

For businesses currently occupying office space, market dynamics heavily favor renegotiations. The high costs associated with relocating are making firms prefer extending their existing contracts, a trend particularly pronounced in cities like Krakow and Wrocław. This inclination to renew highlights the importance of strategic planning for businesses approaching lease expiry, as it often provides a more cost-effective solution than seeking new premises, especially given the scarcity of new investments outside Warsaw.

 

Construction and Future Outlook

 

High construction costs and regional vacancy rates, which average over 17%, mean that most new large-scale projects are concentrated in Warsaw. However, the national outlook for office development remains robust. Over 320,000 sqm of office space is currently under construction across Poland, with 190,000 sqm in regional cities and 130,000 sqm in Warsaw. If planned deliveries materialize, Poland's total office resources could increase by over 200,000 sqm by the end of this year, providing more options for businesses looking to expand or establish new operations. This indicates a healthy, albeit strategically distributed, growth in office availability.

 

Source: prestigepr.pl