In 2024, the Warsaw office market experienced a period of stabilization, with new developments increasingly concentrated in the city centre and a high number of lease renegotiations. Although vacancy rates saw slight annual increases, the overall trend remains downward.
Looking ahead to 2025, key market drivers will include the limited availability of large office spaces, the growing emphasis on ESG (Environmental, Social, and Governance) criteria, and the continued expansion of flexible office solutions. AXI IMMO, Poland’s largest commercial real estate advisory firm, presents its latest market report, Office Market in Warsaw 2024.
Stable Supply and Prime Location Concentration
Last year Warsaw’s modern office space grew by an additional 100,000 sqm, bringing the total to 6.29 million sqm by year-end. Major office completions included:
- The Form (29,400 sqm, Lincoln Property)
- Lixa (Yareal) Buildings D (9,300 sqm) and E (16,900 sqm)
- Saski Crescent (15,500 sqm, CA Immo)
- Vibe Complex (Phase 1) (15,000 sqm, Ghelamco)
Development activity was heavily concentrated in the city centre, particularly around Rondo Daszyńskiego, a key hub for office investment. Notably, 83% of new office supply were delivered to central districts, reflecting the growing demand for prime locations.
Emilia Trofimiuk, Research Manager, Research Department, AXI IMMO, commented: “Despite new project deliveries, the overall office stock remains stable as older, less efficient office properties are being repurposed, often for residential use. Additionally, over 230,000 sqm of office space is currently under construction, with 86 percent in central Warsaw. Major projects include The Bridge (47,000 sqm, Ghelamco), Upper One (35,900 sqm, Strabag), the redeveloped V Tower (32,700 sqm, Cornerstone), Office House (27,800 sqm, Echo Investment), Studio A (26,600 sqm, Skanska), and Skyliner II (24,000 sqm, Karimpol).”
Vacancy rate trends downwards
At the end of 2024, Warsaw’s office vacancy rate stood at 10.6 percent, reflecting a slight year-on-year increase of 0.2 percentage points. However, quarter-on-quarter, the market remained downward (-0.1 p.p.). The highest vacancy levels were recorded in the Służewiec business district (19.7 percent), which continues to struggle with an oversupply of outdated office stock. By contrast, the central zones maintained a significantly lower vacancy rate of 8.8 percent.
Take-up – lease renegotiations dominate as tenant activity stabilises
Total office leasing activity in Warsaw in 2024 reached 740,000 sqm, marking a marginal 1 percent decrease year-on-year. Lease renegotiations were the predominant transaction type, accounting for 46 percent of all transactions (+3 p.p. YoY). Net take-up, including new leases and expansions, declined by 6 percent YoY (400,000 sqm), reflecting limited availability of large office spaces and a growing preference for subleases as a cost-optimisation strategy. The largest transaction of 2024 was a pre-let of 24,500 sqm by Santander Bank in The Bridge. Other major deals, averaging between 13,000-14,000 sqm, included lease renewals and renegotiations at Atrium Garden, Varso Place 2, T-Mobile Office Park, and Domaniewska Office Hub. The most active sectors among tenants were finance, manufacturing, business services, and IT.
Stable rental levels, rising service charges
Bartosz Oleksak, Associate Director, Office Agency, AXI IMMO, stated: “In 2024, headline rents in prime office buildings in central Warsaw ranged from €19.00 to €26.50 per sqm per month, with premium spaces exceeding 30.00 per sqm per month. In non-central locations, rental rates started at approximately €9.00 per sqm per month. Despite inflationary pressures and construction costs, rental levels remained stable year-on-year. However, service charges increased, ranging from PLN 12.00 to PLN 45.00 per sqm per month, driven by rising operational expenses and ongoing building modernisation investments.”
2025 Outlook – Supply shortages and the growth of flexible offices
Jakub Potocki, Associate Director, Office Agency, AXI IMMO, explains: “In 2025, development activity in Warsaw is expected to concentrate on central locations, particularly around Rondo Daszyńskiego, where around 140,000 sqm of new office space is scheduled for completion. Market trends will likely focus on the limited availability of large office units, the increasing popularity of flexible office solutions, the ongoing optimization of occupied spaces, and the renovation of older buildings to meet ESG standards. Occupiers are anticipated to place greater emphasis on office design and quality, while landlords will adjust their offerings to accommodate the evolving needs of tenants.”