Poland’s Office Market: When and Where to Act to Secure the Best Spaces

Finding the right office space in Poland has become more challenging than ever. With Warsaw’s tight market and limited supply in regional cities, tenants need to plan strategically and act quickly to secure the most attractive spaces.

The Polish office market is undergoing significant changes. Differences between Warsaw and major regional cities are growing, making the search for office space increasingly competitive. Today, success depends not only on the location or quality of the building but also on the timing of the search.

Warsaw: Landlords Call the Shots

Available office space in Warsaw is increasingly scarce, affecting both large offices and smaller units, particularly in central locations and modern developments. This landlord-driven market results in higher rents and lower vacancy rates, leaving tenants with less flexibility. Securing the right space now requires careful planning well before existing leases expire.

Regional Cities: Opportunities Are Narrowing

Regional cities still offer more favorable conditions, such as competitive rental rates and incentives, though this advantage is gradually disappearing. For instance, Kraków saw only around 12,000 sqm of new office space completed last year, a sharp decline from the 200,000 sqm delivered in 2017.

Wrocław: High Demand, Limited Supply

Wrocław remains a key office market with over 1.3 million sqm of office space. Tenant interest remains strong, with nearly 180,000 sqm leased last year, mostly through renegotiations of existing contracts. New deliveries are minimal, strengthening landlords’ positions and emphasizing the importance of early planning.

The city attracts businesses due to its high quality of life, well-developed infrastructure, and strong academic and business environment. Limited new supply means tenants must act quickly to secure space.

Large Tenants Face Growing Challenges
Large companies seeking offices over 10,000 sqm encounter especially limited options. Ground-up projects are scarce, and in the coming years, finding suitable space may become nearly impossible.

Key Strategy: Be Early and Strategic

The core principle for navigating today’s office market is early action. Starting negotiations in advance allows tenants to secure better financial terms and access the most desirable spaces. Even in regional cities where tenants may still have leverage, early engagement is essential to ensure the best opportunities.

Source: Propertynews