Demand for office space in Poland is on the rise, particularly in regional cities. The trend of downsizing office footprints is reversing, as companies are beginning to expand their workspace once again.

The growing need to return to on-site work is a positive signal for the office market. New developments remain scarce, however, leasing activity is picking up—particularly in regional markets, as we've observed in recent months. An encouraging sign for the sector is also the increasing average lease size  - says Mateusz Strzelecki, Partner / Head of Tenant Representation at Walter Herz - Regional cities are now outpacing Warsaw in terms of demand and the number of projects under development. Meanwhile, the Warsaw market is seeing a higher influx of new supply, whereas in the regions, this year’s new deliveries are minimal – he adds.

Surge in Office Demand Across Regional Markets

Renegotiations continue to dominate activity across all office markets. Companies prefer extending existing leases rather than relocating to new spaces. High relocation costs are a key factor keeping tenants in their current offices. This trend is most pronounced in Cracow and Wroclaw, where lease renewals are particularly prevalent. Importantly, however, Poland’s major cities have seen a significant increase in demand for office space in recent months.

Increased tenant activity led to nearly 400 thousand sq m. of office space being leased across the eight largest regional markets outside Warsaw by mid-2025. This represents a more than 50 per cent year-on-year increase in total regional demand in the second quarter, compared to the same period in 2024.

In the first half of 2025, approximately 300 thousand sq m. of office space was leased in Warsaw—comparable to the volume recorded during the same period last year.

Within the structure of regional demand, Cracow stands out, having seen the largest increase in leasing activity in recent months. In the second quarter, office demand in Cracow was on par with that of Warsaw. According to Walter Herz, over 170 thousand sq m. of office space was leased in Cracow by mid-year. In Wroclaw, lease agreements were signed for over 80 thousand sq m., while in the Tri-City (Gdansk, Gdynia, Sopot), market absorption exceeded 50 thousand sq m. during the same period. Outside of Warsaw, tenants from the IT and business services sectors continued to play a leading role in driving demand.

New Office Projects Initiated Only in Warsaw

High construction costs, combined with a persistently elevated vacancy rate in regional markets—averaging over 17 per cent—are causing investors to hold off on launching new developments. So far this year, regional markets have seen only a minimal addition of new office space, with just a small office building completed in Poznan.

In Warsaw, 85 thousand sq m. of new office space was delivered in the first half of the year across four projects. This includes the completion of The Bridge (47 thousand sq m.) and Office House (27 thousand sq m.), part of the mixed-use T22 complex. In the second half of the year, two more developments are expected to be completed in the capital: V-Tower (32 thousand sq m.) and Studio A (26 thousand sq m.).

Projects currently under construction in Warsaw include the Skyliner II office tower and Upper One. Several other developments are in the planning phase, such as additional buildings within the VIBE complex, a new office building within the Towarowa 22 project, and LightOn Warsaw (23 thousand sq m.), located at 69 Prosta Street. The vacancy rate in Warsaw remains stable at around 10 per cent.

Across Poland, only just over 320 thousand sq m. of office space is currently under construction, including 190 thousand sq m. in the largest regional cities and 130 thousand sq m. in Warsaw. Cracow, which leads the regional markets in new development, has approximately 65 thousand sq m. of office space under construction, while Poznan follows with over 50 thousand sq m.

If developers stick to the planned delivery timelines, Poland’s total office stock could increase by over 200 thousand sq m. of new space this year, according to analysts at Walter Herz.

(WBJ)