Demand remains strong
Warsaw companies remain active in the leasing market despite the increasingly limited availability of office space. In the first three quarters of the year, leasing volume exceeded 592,000 sqm, representing a 22% year-on-year increase. New leases accounted for 49% of the volume, renegotiations for 44%, and expansions for 6%.
In Q3 alone, gross take-up reached 175,300 sqm. The largest transaction of the quarter was PwC’s 20,000 sqm pre-let at AFI Tower – Towarowa 22. This was followed by an 8,300 sqm lease renewal by a confidential tenant at Eqlibrium and a 7,500 sqm pre-let by eService at Drucianka Campus B1B.
Companies are also showing an increasingly clear tendency to secure office space well in advance. In Q3, new leases accounted for 56.4% of total take-up, while the share of pre-lets increased to 16.3%.
Office availability continues to decline
Limited supply and sustained tenant activity are driving a further decline in office availability.
At the end of September, 490,600 sqm of office space was available in Warsaw, down 19% year-on-year and 7.3% compared with the previous quarter. The average vacancy rate fell to 7.9%, reaching its lowest level in six years.
Availability remains particularly constrained in central locations. The vacancy rate in the city centre declined to 4.3%, while in the Central Business District it stood at 4.8%. Outside the city centre, vacancy remained significantly higher at 11.1%. Availability is particularly limited in the newest buildings, with the vacancy rate in properties up to five years old standing at just 2.4%.
“The Warsaw office market is entering another phase of the cycle, characterised by a clear reduction in available space amid sustained strong tenant activity. The shift in market dynamics is particularly visible in central business locations, where the availability of modern office space is shrinking rapidly. Companies seeking larger office units are starting relocation processes increasingly early and are more frequently securing future space through pre-let transactions,” comments Izabela Potrykus, Head of Office Agency, BNP Paribas Real Estate Poland.
New office supply remains limited
No new office space was delivered to the Warsaw market in Q3. Over the past four quarters,
a total of 45,200 sqm of office space was completed, 61.7% less than a year earlier. At the same time, 138,900 sqm of office space remains under construction.
The largest projects currently underway include AFI Tower with 50,000 sqm of office space, Upper One with 35,500 sqm, Drucianka B1 & B2 with 32,000 sqm, and Skyliner II with 23,000 sqm. Upper One and Skyliner II are scheduled for completion in Q1 2027, while AFI Tower and Drucianka B1 & B2 are expected to be completed in Q3 2028.
Prime offices are becoming increasingly important
Declining availability combined with limited development activity is intensifying competition for the best office space. This trend is particularly evident in modern Class A buildings and central business locations. The market is becoming increasingly polarised between modern premium properties and older office buildings.
In these conditions, tenants need to plan their leasing strategies further in advance. Limited availability of modern offices in the most sought-after locations may further intensify competition for the best space over the coming quarters.
Rental pressure is concentrated in the best buildings
Prime rents in the Warsaw office market stand at EUR 30 per sqm per month. At the same time, rental levels are becoming increasingly differentiated depending on building quality, age and location. The median asking rent in buildings up to five years old stands at EUR 20.4 per sqm per month, compared with EUR 17.3 in properties aged 6–10 years and EUR 15.3 in buildings over 10 years old.
“Sustained strong demand combined with the limited supply of new development projects is shaping current rental dynamics. This is particularly evident in central locations and Class A buildings, where companies are competing for the best office space. Strategic leasing decisions and sufficient advance planning therefore remain key to securing the right space,” says Wiktoria Weilandt, Associate Director, Office Agency, BNP Paribas Real Estate Poland
Over the coming quarters, market dynamics may continue to shift in favour of landlords of the best office buildings. Limited availability of modern office space, particularly in central locations, is increasing the importance of forward-looking leasing strategies, starting relocation processes well in advance and securing space before projects are completed.
