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Office Market News

Regional office markets in Poland attract tenants

In 2023, on Poland’s largest eight regional office markets, developers delivered 280,000 sqm (-31% y/y). It’s bringing the sector’s total stock to 6.68 million sqm (+4% y/y). The new supply slightly increased the vacancy rate, stabilizing around 17.5% (+2.2 pp. y/y) at the end of December 2023. The largest concentration of tenant activity was observed in the largest regional office markets, i.e., Kraków, Wrocław, and the Tricity (about 70% of gross demand), where, in total, companies leased about 520,000 sqm out of 750,000 sqm of all signed contracts in 2023, says Axi Immo.

Domaniewska 45 Flex: new flexible office offering in Mokotow

A new flexible office concept is being developed in Warsaw's Mokotow district to meet the needs of different types of tenants. Domaniewska 45 Flex are offices leased directly from the building owner, who is also the office operator1. The project is being developed by ASD Real Estate

Shrinking Development, Rising Vacancies in Regional Polish Offices

Despite a decrease in new office construction, major Polish cities outside of Warsaw still anticipate more office space than the capital. By the end of 2023, regional vacancy rates reached record highs.

Office take-up hits a record high in Polish regional markets

According to a recent report published by Newmark Polska, total office take-up in 2023 in the largest Polish regional cities surpassed 741,300 sqm - an increase of almost 19% year-on-year and 7% from the pre-pandemic 2019 peak. Meanwhile, issues related to ESG, functionality improvements, efficient office space management and optimisation of lease costs have filtered through into the vocabulary and strategies of tenants and developers alike.

Interviews

We can see a lot of demand for apartments in central Łódź and we’re going to meet it

Being in the centre of Poland where the country’s main communication arteries meet, Łódź is betting on its location as the country’s major crossroad. This has tempted manufacturers, IT and R&D firms as well as logistics operators, who are right now experiencing a golden age. The local authorities support the preservation and continuation of the city’s architecture, which does not mean that there is a ban on constructing new tall buildings in the city. In the third ‘Around the World in 8 Questions’ interview, we met with Hanna Zdanowska, the mayor of Łódź, “We can see a lot of demand for apartments in central Łódź and we’re going to meet it,” she declares.

"Safety rules in office buildings matter a lot in the rental decision"

The pandemic has changed our perspective and needs, and from 2020 the safety norms implemented by office buildings matter a lot for tenants when it comes tp rent new spaces - says Adriana Drăgoescu, CEO, RPHI Romania. In the interview she emphasizes that the measures, efforts and strategy of an office building on safety rules are the top three criteria in decision making. - Interview with Adriana Drăgoescu, CEO, RPHI Romania

Transactions

Date Business Center Tenant m2 Agency
2024 Q1 Nefryt Warsaw MAK GROUP 2500
2024 Q1 Corner House Office Warsaw Bank pocztowy 2600
2024 Q1 N21 Warsaw Freundschaft 499

More Transactions »

Best of 2024

  • Largest Rental:

    Mogilska 35 - Warimpex, with 3700m2 rented space

  • Most Active Office Building:

    Mogilska 35, 1 db rentals, with 3700m2 rented space

  • Most Active Agency:

    , 0 transactions, transactions total space: 17812 m2

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