Tenants remain active and continue to look for modern workspaces despite a notable decline in new office completions in Poland’s eight key regional cities, according to At a Glance: Regional City Office Markets, Q1 2025, the latest report from BNP Paribas Real Estate Poland. Gross take-up holds steady, with demand for premium quality offices rising, particularly in Kraków, Wrocław, and Tricity.
Leasing activity in regional cities picks up
At the end of the first quarter of 2025, the combined office stock of Poland’s eight largest regional cities, excluding Warsaw, stood at 6.76 million sqm. Kraków remains the largest regional city office market, with 1.83 million sqm of office space, accounting for 27 percent of the total regional stock. It is followed by Wrocław, with 1.36 million sqm, making up a 20 percent share. Tricity ranks third, with 1.06 million sqm (16 percent).
A total of 177,000 sqm of leases were recorded between January and March this year, which this an increase of 27 percent compared to the first quarter of last year. Occupier interest continued to focus on Kraków, which saw over 56,000 sqm transacted, making up 32 percent of the total leasing volume. Wrocław followed with more than 43,000 sqm leased, accounting for 25 percent of total regional activity, while Tricity recorded 26,000 sqm, representing 15 percent. Year-on-year increases in gross office take-up were also recorded in Tricity, Katowice, Poznań, and Lublin.
According to BNP Paribas Real Estate Poland’s report, leasing activity in the first quarter of 2025 was dominated by lease renewals, which accounted for 48 percent of total office take-up. New leases made up 43 percent, while expansions contributed the remaining 8 percent.
“Lease renewals often come with office downsizing. Looking ahead, we expect the hybrid work model will be redefined in the coming quarters of 2025, with employees increasingly willing to return to the office. This shift, in turn, is likely to drive renewed demand in Poland’s regional city office markets,” says Małgorzata Fibakiewicz, Head of Office Agency, BNP Paribas Real Estate Poland.
The largest transactions included the renewal of a confidential tenant’s lease for 8,400 sqm of office space at Building K of Business Garden II in Wrocław and a new lease for 7,200 sqm in DOT Office C in Kraków. According to the report, three of the five largest deals were finalised in Wrocław.
New supply stagnates
In the first quarter of 2025, the total regional office stock expanded by just 2,400 sqm, marking the lowest level of new supply ever recorded in the history of Poland’s regional cities. This new space was delivered through Dymka 188, a project completed in Poznań by Dom Medialny Św. Wojciech.
Although a few office developments are slated for delivery in the coming months, overall development activity remains subdued. Additionally, despite stable occupier demand, high vacancy rates continue to discourage investors from launching new office projects.
At the end of March 2025, approximately 1.18 million sqm of office space was available for immediate occupancy across the eight key regional cities, equating to a vacancy rate of 17.5 percent. The period under review saw mixed trends in office vacancies, with declines in office availability recorded in Katowice and Kraków, and a 1 percentage point increase in both Poznań and Wrocław. The highest vacancy rate of 22.3 percent was in Łódź, while the lowest was in Szczecin at 8.0 percent.
BNP Paribas Real Estate Poland notes that office buildings over 10 years old account for the largest share of vacant office stock. High vacancy rates are expected to remain elevated in the coming months, with office absorption likely to take three to five years.
Headline rents for Class A office space in regional cities stood at €12-17 per sqm per month, with newly built properties and those in prime locations commanding even €19.50-23 per sqm per month. The highest rental rates were recorded in Poznań, Kraków and Wrocław. Monthly service charges across regional cities remained below PLN 37 per sqm, depending primarily on the building’s technical performance and management quality.
More space, more amenities
At the end of the first quarter of 2025, the office development pipeline included several projects expected to deliver nearly 310,000 sqm of space upon completion. The largest project currently underway is Quorum Office Park B in Wrocław, which offers more than 53,000 sqm of office space. Developed by Cavatina, it is scheduled for completion in the second quarter of 2025. Other major developments in the pipeline include Von der Heyden Group’s AND2 in Poznań (37,000 sqm) and Stalprodukt’s Tischnera Green Park 1 in Kraków (24,000 sqm).
New office buildings are currently designed to provide employee-friendly workspaces, as an improved quality of professional life is likely to contribute to organisational success. Companies that create such environments support skill development and promote open communication, collaboration and a healthy work-life balance.
“To support employee wellbeing, office spaces should incorporate several home-inspired features such as pouffes, hammocks and comfortable armchairs. It is also advisable to create chill-out and relaxation areas, for example, game rooms, to facilitate team integration and foster a sense of belonging. Remember, employee engagement increases when people feel they are part of a greater mission,” says Dorota Mielke, Associate Director, Office Agency, BNP Paribas Real Estate Poland.
