Poland Office Market Report 2025-2026: What Tenants Need to Know

Poland’s office market is entering 2026 in a clearly bifurcated state: strong, sustained demand for prime Grade A, ESG-compliant offices in central locations is running in parallel with rising vacancy and growing obsolescence in older stock. For occupiers, this creates a rare window of opportunity—combining increased negotiating power with access to higher-quality space than in previous cycles.

1. Market Overview

Poland remains one of the most mature and liquid office markets in Central and Eastern Europe, with Warsaw firmly established as the dominant hub. The capital accounts for the majority of Grade A stock, institutional investment activity, and international occupier demand.

Over the past decade, Warsaw’s office market has expanded significantly, driven by multinational corporations, the growth of the BPO/SSC sector, and continued inflow of foreign direct investment. However, new development activity has slowed since 2023 due to rising construction costs, financing constraints, and a more cautious developer outlook.

As a result, supply dynamics are tightening in prime locations even as older stock becomes increasingly difficult to lease.

Prime rents (Warsaw CBD Grade A): €22–€28/sq m/month

2. Vacancy and Availability (2026)

Headline vacancy rates in Poland can be misleading, as they conceal a growing divide between high-quality and outdated office space.

Grade | Vacancy Rate | Market Situation

Grade A (prime) | 5–9% | Limited availability, strong demand
Grade A (secondary) | 10–15% | Balanced, incentives available
Grade B | 15–25%+ | Structural vacancy, declining appeal

In practice, well-located, ESG-certified buildings are often close to fully let, while older buildings—particularly those lacking modern amenities or sustainability credentials—face prolonged vacancy.

This “flight to quality” trend is one of the defining characteristics of the Polish office market going into 2026.

3. Rental Trends and Cost Positioning

Following a period of rapid rental growth in 2022–2023, the market has entered a more stable phase. Prime rents are still increasing, but at a much slower pace—typically in the range of 1–3% annually.

At the same time, effective rents (after incentives) can vary significantly depending on building quality and lease terms.

Warsaw rental benchmarks:

Prime CBD Grade A: €22–€28/sq m/month
Modern business districts: typically 15–25% below CBD levels
Suburban locations: often 30–45% below CBD

For tenants, this pricing spread creates an opportunity to upgrade space without a proportionate increase in total occupancy costs.

4. Development Pipeline and Supply Constraints

A critical factor shaping the 2026 outlook is the limited new supply pipeline.

New office completions have declined significantly compared to pre-2020 levels due to:

Higher construction and financing costs
Developer caution amid uncertain demand
Increasing ESG and regulatory requirements

This constrained pipeline is expected to support rental stability in prime locations over the medium term, even as secondary stock struggles.

5. Key Demand Drivers (2026)

Demand in Poland continues to be underpinned by a diverse and resilient occupier base.

The BPO/SSC sector remains a major driver, with Poland consistently ranking among the top global locations for shared services due to its skilled workforce and cost competitiveness.

The technology sector is also expanding, supported by both local startups and international firms establishing regional hubs.

In addition, financial services and professional services firms continue to grow their footprint, particularly in Warsaw, benefiting from Poland’s integration within the EU economic framework.

A major structural shift is the continued flight to quality, where tenants reduce overall space but relocate to higher-standard buildings with better amenities, sustainability credentials, and employee experience.

6. Impact of Hybrid Work

Hybrid working has permanently reshaped office demand in Poland.

Most large occupiers have reduced their total footprint by approximately 15–25% compared to pre-2020 levels. However, this reduction has been offset by higher investment in workspace quality.

Offices are increasingly designed as collaboration hubs rather than purely desk-based environments. This has driven demand for:

Flexible layouts
Meeting and collaboration areas
High-quality amenities

As a result, overall demand remains stable, but the type of space tenants seek has fundamentally changed.

7. Sustainability and ESG Requirements

Sustainability is no longer optional in the Polish office market—it is becoming a core leasing criterion.

A clear rental premium is now visible for green-certified buildings:

BREEAM Very Good / Excellent: typically 5–15% higher rents
Strong preference for energy-efficient, low-emission buildings

Multinational occupiers increasingly require:

Green lease clauses
Energy performance transparency (EPC/EPB ratings)
Alignment with corporate ESG targets

Buildings that fail to meet these standards risk accelerated obsolescence.

8. Tenant-Friendly Market Conditions

Compared to the peak landlord market in last years, conditions in 2026 are significantly more favourable for occupiers.

Tenants can now expect:

Greater negotiating flexibility on lease terms
Rent-free periods and fit-out contributions
Break options even in higher-quality buildings

This shift gives occupiers a strategic opportunity to secure better space on more favourable terms than in previous years.

9. Outlook for 2026

Looking ahead, the Polish office market is expected to remain stable but structurally divided.

Prime assets in central locations should continue to perform well, supported by limited new supply and sustained occupier demand.

In contrast, older buildings without refurbishment or repositioning strategies are likely to face increasing vacancy and downward pressure on rents.

For tenants, this means a market defined by choice, leverage, and upgrading opportunities.

FAQs

Is Poland a good market for establishing a shared service centre or BPO in 2026?

Yes. Poland remains one of the leading destinations globally for BPO and shared service operations. Its combination of competitive labour costs, a highly educated and multilingual workforce, and strong infrastructure continues to attract international companies. Compared to Western Europe, total operating costs remain significantly lower while maintaining high service quality.

How is hybrid working affecting office demand in Poland?

Hybrid work has reduced overall space requirements, but not demand for offices themselves. Companies are leasing less space but investing more per square metre. The focus has shifted toward quality, flexibility, and employee experience, which supports continued demand for modern Grade A offices.

What should tenants prioritise in an office lease in Poland in 2026?

Tenants should focus on flexibility and cost control. This includes securing break options, negotiating realistic service charges, obtaining fit-out contributions aligned with lease length, and ensuring the building meets sustainability standards relevant to their ESG strategy.