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Warsaw continues to solidify its position as Poland’s leading office market. In the first quarter of 2025, tenant activity surged, with demand for office space rising by 16% year-on-year, resulting in over 160,000 sqm of leased space – the highest figure in the country.
“During the same period, only 6,000 sqm of new modern office space was delivered to the market, contributing to a further drop in the vacancy rate. As of the end of March 2025, Warsaw’s overall vacancy stood at 10.5%, with central zones averaging just 7.4%. Remarkably, newly built offices completed after 2020 recorded a vacancy rate as low as 3.5%,” commented Michał Kusy, Market Research Analyst at Knight Frank.
Warsaw Dominates National Supply
At the end of Q1 2025, Warsaw’s total office stock reached 6.28 million sqm, accounting for nearly 50% of the country’s overall supply. A significant 45% of this is concentrated in central zones, with notable submarkets including Służewiec and Aleje Jerozolimskie, contributing 17% and 12% respectively.
Limited New Supply but Strong Pipeline
Developer activity remains modest – only one new office building was completed in Q1 2025: CD Projekt’s new headquarters, offering 6,000 sqm. Currently, 241,000 sqm is under construction, with most expected to be delivered by the end of the year, predominantly around Rondo Daszyńskiego. In the city center, modernization projects dominate, accounting for 26% of the total space under development.
Demand Driven by New Leases and Expansions
“A particularly encouraging trend is the increase in new leases and expansions. In Q1 2025, new leases accounted for 49% of total take-up, while the share of renewals dropped significantly to 25%. Owner-occupier transactions made up 17%, and expansions represented 9%, indicating growing confidence among tenants,” added Piotr Kalisz, Head of Tenant Representation at Knight Frank.
Sustainability continues to play a key role in tenant decisions: 68% of the space leased in Q1 was in certified green buildings, with 43% located in top-rated schemes – including BREEAM Excellent, BREEAM Outstanding, and LEED Platinum.
Stable Rents with Premium Pricing in Top Locations
Asking rents in Q1 2025 remained stable. In central Warsaw, they ranged from EUR 18 to 28 per sqm/month, with premium locations often exceeding this range. Outside the city center, typical rents ranged from EUR 10 to 17 per sqm/month. Service charges generally varied between PLN 18 and 38 per sqm/month.
Outlook: A Resilient Market Focused on Sustainability
Despite limited new supply, Warsaw’s office market remains strong and resilient. Future growth will increasingly depend on the development of modern, sustainable buildings and the ability to adapt to evolving tenant needs.
If you’re considering relocating, expanding, or simply exploring office space options in Kraków, our team is here to help. With deep market insight and a tenant-first approach, we’ll guide you through every step of the process.
Contact us to discuss your needs – we’re happy to help you find the right space.
Piotr Kalisz
Head of Tenant Representation
M. +48 691 980 043
E-mail: piotr.kalisz@pl.knightfrank.com
