The latest market report “Office Market in Warsaw 2024” published by AXI IMMO, Poland’s largest advisory firm on the commercial real estate market.

The year 2024 saw a period of stabilisation in the Warsaw office market, with an increasing concentration of new supply in the city centre and a high proportion of lease renegotiations. Despite marginal annual increases, the vacancy rate remains on a downward trajectory. Key market drivers in 2025 will include the limited availability of large office spaces, the growing importance of ESG criteria, and the continued expansion of flexible office solutions.

Stable supply and concentration in prime locations

Warsaw’s modern office stock expanded by an additional 100,000 sq m in 2024, reaching a total of 6.29 million sq m by the end of the year. Key office completions included The Form (29,400 sq m, Lincoln Property), Lixa (Yareal) Building D (9,300 sq m) and E (16,900 sq m), Saski Crescent (15,500 sq m, CA Immo), and the first phase of the Vibe complex (15,000 sq m, Ghelamco).

Development activity focused on the Warsaw city centre, particularly around Rondo Daszyńskiego, a key hotspot for office investment. A significant 83% of new supply was delivered to central districts, underlining growing occupier 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 sq m of office space is currently under construction, with 86% in central Warsaw. Major projects include The Bridge (47,000 sq m, Ghelamco), Upper One (35,900 sq m, Strabag), the redeveloped V Tower (32,700 sq m, Cornerstone), Office House (27,800 sq m, Echo Investment), Studio A (26,600 sq m, Skanska), and Skyliner II (24,000 sq m, Karimpol).”

At the end of 2024, Warsaw’s office vacancy rate stood at 10.6%, 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levels were recorded in the Służewiec business district (19.7%), which continues to struggle with an oversupply of outdated office stock.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%.


Take-up – lease renegotiations dominate as tenant activity stabilises

Total office leasing activity in Warsaw in 2024 reached 740,000 sq m, marking a marginal 1% decrease year-on-year. Lease renegotiations were the predominant transaction type, accounting for 46% of all transactions (+3 p.p. YoY). Net take-up, including new leases and expansions, declined by 6% YoY (400,000 sq m), 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 sq m by Santander Bank in The Bridge. Other major deals, averaging between 13,000-14,000 sq m, 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 EUR 19.00 to EUR 26.50 per sq m per month, with premium spaces exceeding EUR 30.00 per sq m per month. In non-central locations, rental rates started at approximately EUR 9.00 per sq m 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 sq m 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 sq m 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.”