Global real estate services firm Cushman & Wakefield has summarised the Warsaw office market’s performance in the first quarter of 2025. Leasing activity saw double-digit growth, rising by 16% year-on-year. Meanwhile, with renewed occupier demand and a limited development pipeline, office availability continued to trend downwards.
SUPPLY: Office construction remains focused on the city centre
According to Cushman & Wakefield, the Warsaw office market is expected to expand by approximately 135,000 sqm this year across five office projects located in central zones. With new projects being developed mostly in the city centre, tenants remaining cautious about relocation and elevated construction and financing costs, the stagnation in office development is likely to persist in the coming years,”
explains Jan Szulborski, Business Development & Insight Manager, Cushman & Wakefield.
TAKE-UP: A strong start to the year
Total leasing activity in the first quarter of 2025 surpassed 160,000 sqm. While this is a relatively moderate figure, it still represents a year-on-year increase of approximately 16%. The three months to March 2025 were dominated by new leases, accounting for nearly half of total take-up, followed by renewals at a relatively low 25%. Owner-occupier deals and expansions contributed a substantial 17% and 9% respectively. From our observations, office demand in Warsaw is being driven by the rapid expansion of the SSC/BPO sector, with significant growth potential coming from banks, IT firms and pharmaceutical companies,”
comments Ewa Derlatka-Chilewicz, Head of Research Poland, Cushman & Wakefield.
VACANCIES: Office availability continues its downward trend
This vacancy rate equates to just under 660,000 sqm of unoccupied office space, marking a decrease of approximately 6,500 sqm from the previous quarter. With new office supply expected to remain constrained in 2025-2027, Warsaw’s vacancy rate is likely to continue its downward trend, enabling the market to absorb surplus office space from existing stock,”
adds Vitalii Arkhypenko, Market Analyst Rynku, Cushman & Wakefield.
RENTS: City centre sees most rental growth
Rental growth in the last quarter was strongest for new office completions in the city centre. By contrast, office rents in existing buildings with high occupancy levels – in both central and non-central locations – rose largely in line with inflation, driven by the indexation of asking rents. Looking ahead, upward pressure on rents is expected to continue in the coming quarters, especially for projects under construction and prime office buildings in central Warsaw. Meanwhile, increased competition and elevated vacancy rates are likely to result in limited rental growth in most non-central offices,”
concludes Piotr Capiga, Deputy Head of Occupier Services, Office Department, Cushman & Wakefield.