Office development pipeline hits a 30-year low, presenting a new challenge for the Warsaw market

15 July 2025

According to a report from global real estate services firm Cushman & Wakefield on the Warsaw office market as of the end of June 2025, the city’s office development pipeline remains at a historic low. Despite low take-up volumes, leasing activity was strong in terms of deal count. Shrinking office availability in central locations continues to drive prime rental growth.

SUPPLY: Office development pipeline shrinks to a record low, with construction activity concentrated in central locations

In the second quarter of 2025, Warsaw’s total office stock stood at more than 6.3 million sqm. By the end of this year, another 50,000 sqm of new office space is scheduled for delivery through projects developed exclusively in central locations, including Skanska’s Studio A in ul. Prosta and the refurbishment of Cornerstone’s V Tower in ul. Chmielna. Notably, the Polish capital currently has approximately 130,000 sqm of office space under construction, representing a 30-year low. This volume of new supply mirrors the level recorded in 1995, when the Warsaw office market was still in its infancy.

There are several large-scale projects underway, including Karimpol’s Skyliner II tower and Strabag RE’s Upper One. Developments in the pipeline comprise the second phase of Ghelamco’s VIBE, another office building within the Towarowa 22 complex, developed by Echo Investment/AFI, and CPI’s LightOn at ul. Prosta 69. Schemes with development potential in peripheral areas include Atenor’s Lakeside II and Librecht & Wood’s mixed-use Drucianka complex. Despite this, construction activity is subdued, signifying that new supply will remain constrained in the coming years,”

says Piotr Capiga, Deputy Head of Occupier Services, Office Department, Cushman & Wakefield.

TAKE-UP: Tenants remain cautious, with few large lettings and small new lease sizes

Total leasing activity in the first half of 2025 hit 301,400 sqm, down 5% year-on-year. The average size of new leases was approximately 600 sqm, while renegotiated leases were nearly two and a half times larger, averaging 1,500 sqm. Take-up by transaction type shows a consistently high share of renewals at 43%. New leases accounted for 40%, while owner-occupier deals and expansions contributed 9% and 8% respectively.

The largest lease renegotiation in the first half of the year – and the largest transaction overall – saw Polkomtel renew its lease for 22,700 sqm at Multimedialny Dom Plusa. The biggest owner-occupier transaction was EnterAir’s 9,800 sqm deal at Bokserska Office Center, while the largest new letting was Maersk’s pre-let of 3,750 sqm at Office House.

The largest occupiers target large, efficient units in new office projects in the city centre. However, due to limited availability of new space, these preferences do not always translate into actual transactions. Leasing activity is expected to remain steady in the coming quarters, but supply constraints are likely to result in fewer relocations, leading to more lease extensions,”

concludes Ewa Derlatka-Chilewicz, Head of Research Poland, Cushman & Wakefield.

VACANCIES: A downward trend with a slight correction

At the end of June 2025, Warsaw’s vacancy rate stood at 10.8%, up 0.3 pp quarter-on-quarter but still lower than at the same time last year. This equated to approximately 683,000 sqm of unoccupied office space.

With new supply expected to remain constrained in the coming years, the Warsaw office market will steadily absorb surplus office space, continuing to push vacancy rates down. Availability varies by location: non-central areas reported a vacancy rate of 13.3%, while central locations had a vacancy of 7.8%, reaffirming strong occupier focus on the city centre and the limited office availability in this part of Warsaw.”

comments Vitalii Arkhypenko, Market Analyst, Cushman & Wakefield.

RENTS: Rental rates steadily rising in the Centre

In June 2025, prime office rents in Warsaw stood at EUR 22.00-27.00/sqm/month in the Centre and at EUR 15.00-19.00/sqm/month in non-central locations. The strongest rental growth was recorded for new office completions in the Centre. By contrast, office rents in existing buildings with high occupancy levels – in both core and peripheral 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, particularly for projects under construction and prime office buildings in the Centre. Meanwhile, intensifying competition and elevated vacancy levels are likely to keep rental rates relatively stable in non-central office locations.

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2024, the firm reported revenue of $9.4 billion across its core service lines of Services, Leasing, Capital markets, and Valuation and other. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.

Magdalena Znyk-Ossowska

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Karolina Samczyńska

Head of Marketing and Sales Enablement, Poland at Cushman & Wakefield