The Polish office market is entering a new phase: fit-out costs are rising, while move-in-ready space is becoming increasingly scarce. What before the pandemic cost €550–600 per sqm now often requires additional tenant contributions or long-term lease commitments. Disparities between fit-out standards are widening, and developer budgets are increasingly failing to reflect the real cost of office arrangements, according to an analysis by Karolina Słysz, Head of Regional Markets, Office Agency, AXI IMMO.
One of the areas where changes in the office market over recent years are most evident is the cost and availability of fully fitted, turnkey office space.
Karolina Słysz comments: “Before the pandemic, it was still possible to secure an office fully prepared for occupation—financed by the developer—within a budget of around €550–600 per sqm. Pricing was calculated from the shell & core condition, meaning space delivered in a raw, developer-standard state requiring full fit-out. At that time, such a budget allowed for an average standard of finish. Today, comparable offers are increasingly rare. Tenants wishing to move into ready-made space must expect to pay a premium for this convenience. Alternatively, they may be required to sign a longer lease—often seven or even ten years instead of the standard five”.
Based on the experience of AXI IMMO’s expert, the market currently operates with three clearly defined fit-out standards, which determine both cost levels and the scope of works.
The basic standard, most often selected by cost-focused tenants, includes only fundamental finishing materials. These typically consist of low-grade carpeting, vinyl flooring, standard modular suspended ceilings, white-painted walls, a simple open-plan layout with a minimal number of meeting rooms, and plasterboard partitions. The cost of such a fit-out amounts to approximately €700–900 per sqm.
The mid-range standard, which only a few years ago constituted the market norm, now includes higher-grade carpets, colour accents aligned with the company’s visual identity, LED lighting, zoned air conditioning, glazed partitions, enclosed offices and relaxation areas. Simple bespoke joinery elements are also common. Greater emphasis is placed on reception areas, featuring decorative ceiling and wall elements. The cost of this type of arrangement currently stands at €1,000–1,200 per sqm.
The highest standard comprises premium spaces based on bespoke designs and high-quality materials, such as stone, glass, advanced acoustic solutions and decorative ceilings—for example, timber slats. These offices often incorporate advanced lighting systems (such as DALI – Digital Addressable Lighting Interface) and top-tier technological solutions. Costs for such projects range from €1,300 to 2,000 per sqm or more, depending on the complexity of the space.
Karolina Słysz adds: “It is worth noting that rising fit-out costs are driven not only by higher prices of materials and construction services, but also by tenants’ growing expectations regarding office space quality. Increasingly, offices must meet additional criteria—ranging from acoustics and ergonomics to ESG compliance and environmental certifications such as LEED or BREEAM. As a result, what is perceived as a mid-standard fit-out today may include solutions that just a few years ago were reserved exclusively for the premium segment.”
At the same time, pressure to shorten relocation timelines is leading companies to seek space that allows for rapid occupation, which in turn is boosting demand for offices taken over from previous tenants. However, adapting such spaces can prove costly and time-consuming, particularly when modifications to technical installations, HVAC systems or functional layouts are required.
Meanwhile, under a standard five-year lease, developers currently offer fit-out budgets of €500–650 per sqm (calculated from shell & core). This means that even for a mid-standard finish, tenants must cover a substantial portion of costs from their own funds. Space taken over from former tenants poses an even greater challenge. At first glance, the scope of work may appear limited—repainting walls, cleaning carpets or creating a few additional rooms. In practice, however, even minor changes frequently require interference with technical installations, which significantly increases costs and extends project timelines.
For already fitted spaces, budgets offered by developers or investment funds typically range from €150–350 per sqm under a five-year lease. In many cases, this also proves insufficient, particularly when tenants expect the space to be adapted to their internal processes, working standards or corporate branding.
Karolina Słysz concludes: “The current market situation is forcing companies to adopt a more conscious approach to relocation planning and fit-out budgeting. Differences between fit-out standards are becoming increasingly pronounced, while available budgets are ever more disproportionate to actual costs. As a result, decisions regarding space selection, lease length and the scope of arrangement works are becoming one of the key elements of every organisation’s office strategy”.
