Central Warsaw remains the development epicenter

 

As of June 2025, Warsaw’s total modern office stock stood at 6.33 million sqm. Key additions in Q2 included:

 

The Bridge (47,000 sqm)

Office House (27,800 sqm) – the first office building within the T22 mixed-use project

Refurbished Nowa Bellona (4,800 sqm)

 

All three are located in the City Centre West subzone.

 

– Total new office supply in 2025 is projected at approximately 140,000 sqm, a 34% increase from 2024, but still 66% below the record high of 2016 – says Karol Wyka, Executive Board Director, Head of Office Department, Newmark Polska. – Over 95% of this new stock will be delivered in central Warsaw, particularly in Wola, with major completions including Studio A (24,000 sqm) and the revamped V-Tower (30,800 sqm) scheduled for the second half of the year.

 

Office development hits historic low

 

At the end of June 2025, Warsaw’s office pipeline dropped to just 129,000 sqm under construction – the lowest level on record. Nearly 90% of ongoing projects are located in central zones.

 

– A significant rebound in development activity is unlikely before late 2026 or even 2027 – adds Karol Wyka. – This will likely limit new supply availability and increase pressure on existing high-quality stock.

 

Leasing activity led by renegotiations

 

In H1 2025, Warsaw saw over 301,400 sqm of leasing activity, almost equally split between Q1 and Q2. While Q2 volumes rose by 5.5% quarter-on-quarter, total H1 take-up declined by 4.5% year-on-year.

Central zones accounted for 55% of all deals, reflecting tenant preference for prime locations. With a limited pool of larger units in post-2015 buildings, many occupiers chose to renew or renegotiate existing leases.

Breakdown of H1 leasing activity:

 

43% renegotiations and renewals

38% new leases

9% owner-occupier deals

8% expansions

2% pre-lets

 

Renegotiations reached 59% of all transactions in Q2 – the second-highest quarterly share ever recorded in Warsaw. This trend was particularly strong in Służewiec (78%), Mokotów (65%), and the City Centre (62%).

The most active sectors in H1 were:

 

Financial services (17%)

IT (16%)

Manufacturing (10%)

Professional services (10%)

 

Vacancy and rents: selective pressure ahead

 

At the end of June 2025, the vacancy rate stood at 10.8%, up 0.3 pp from Q1 but down 0.1 pp year-on-year. That equates to 682,700 sqm of unleased modern space. Post-2020 completions offered less than 59,000 sqm, with one-third located at The Bridge.

According to Agnieszka Giermakowska, Research & Advisory Director, ESG Lead at Newmark Polska, the vacancy rate is expected to gradually decrease, driven by the limited pipeline and the withdrawal or conversion of older office buildings.

Prime rents in Q2 2025 remained high:

 

€22–27/sqm/month in central locations

€16–18/sqm/month in non-central areas

 

– Prime landlords still hold strong negotiation power – says Agnieszka Giermakowska. – In contrast, landlords of older assets with elevated vacancies are more likely to offer incentives or concessions to attract tenants.

 

source: europaproperty.com