Colliers experts examined the transformation of Poland’s office market

According to Colliers data, over 0.5 million square meters of office space have been withdrawn from the Polish market between 2020 and 2025—approx. 387,000 m² across 37 buildings in Warsaw and approx. 154,000 m² in 22 buildings in regional markets. The most common reasons for withdrawing office buildings from the market are modernization (aimed at improving leasing standards) and function changes—either full or partial.

Major withdrawn projects
For five years, the Warsaw office market has undergone a visible transformation, symbolized by the withdrawal of iconic office buildings, most of them located in central city zones. Among those temporarily removed is the former Warta Tower (now V Tower), undergoing thorough modernization and returning as a modern, eco-friendly building. The revitalization of Saski Crescent was completed in 2024.

This year, Ilmet, PZU Tower, and Pekao Tower may also disappear from Warsaw’s map, as they are scheduled for demolition to make way for new, sustainable, and taller office towers.

A prominent example of this trend is Warsaw’s Służewiec district—once the capital’s office hub—now seeing older complexes transformed into residential projects such as Modern Mokotów (by Archicom) or Esy Floresy (Cybernetyki 7). Curtis Plaza, the first modern office building in the area, may also be repurposed into student housing or institutional rentals.

– This transformation is part of a broader reurbanization of Służewiec, which for years struggled with office space oversupply and a shortage of residential and service functions. New projects aim to turn this monofunctional office district into a more balanced urban area with residential buildings, local services, and green spaces – says Paweł Skałba, Senior Partner, Office Space Department, Colliers.

Further examples of function change include Empark Mokotów Business Park and Lipowy Office Park. The former will be repurposed for housing, while the latter—supported by Colliers Define—will partially become student housing (2 out of 4 buildings).

Regional markets undergoing transformation
In the past five years, approx. 154,000 m² of office space in 22 buildings were withdrawn in regional markets. Wrocław accounted for the largest share (52%), followed by Kraków (14%), Tricity (11%), and Katowice (11%). Since the start of 2025, 20,700 m² has been withdrawn, including Wratislavia Tower and Renaissance Business Centre in Wrocław and a Citibank building in Łódź.

Why are older office buildings disappearing?
In Warsaw, 37% of withdrawn properties changed function (mainly to residential), 27% were demolished, 26% modernized, and 10% sold or repurposed for private use.

– These decisions are driven by the need to meet modern environmental standards and tenants' expectations for greater comfort and flexibility, especially in hybrid work models. Rising operational costs of older buildings are also key. Modernization and ESG solutions boost energy efficiency and lead to cost savings – explains Skałba.

Moreover, unmodernized office buildings lose appeal for investors due to reduced competitiveness and limited refinancing options.

The future – market polarization and new priorities
– We forecast that the trend of withdrawing older buildings will intensify in Warsaw and regional markets. Without modernization, older properties can't compete with modern ones. Combined with rising costs and environmental regulations, this will shape the future of Polish cities—not just economically but also in urban planning – Skałba adds.

The office sector remains a key engine of Poland’s commercial real estate market. In 2024, offices accounted for nearly one-third of total investment volume (€1.6 billion). Most activity occurred in Warsaw, with 32 transactions covering nearly 50 buildings. Regional markets like Kraków, Wrocław, and Tricity are also gaining investor interest, securing 15 projects worth €300 million.

Positive outlook – tenant activity rising
In Q1 2025, Warsaw saw a 16% y/y increase in office demand, and regional markets rose 27% y/y. Nearly 50% of signed contracts in Warsaw were new leases.

Several ambitious projects are underway in the capital, such as Ghelamco’s The Bridge (47,000 m²) and Office House (32,000 m² in Towarowa 22). Construction will soon conclude on Cornerstone’s V Tower (32,700 m²) and Skanska’s Studio A (25,400 m²). In 2026, Skyliner II (24,000 m² by Karimpol) and VENA (14,500 m² by PHN) will launch, with Upper One (Strabag, 32,700 m²) expected in 2027. Altogether, over 200,000 m² of new premium office space will enter the market, tailored for hybrid work and sustainable development.

Outside Warsaw, key projects include AND2 in Poznań (36,500 m², 2026, Von der Heyden Group), WITA B&C in Kraków (18,900 m², 2026, Echo Investment), Swobodna SPOT I in Wrocław (16,200 m², 2025, Echo Investment), and Echo City 1&2 in Katowice (17,700 m², 2025, GPP Invest). These highlight the rising strength and maturity of regional office markets.