Warsaw Office Market Shows Growing Divide Between Central and Peripheral Locations

The Warsaw office market continued to show increasing divergence between central and non-central locations during the first quarter of 2026, according to new research from  AXI IMMO. The report suggests that different parts of the city are now operating under distinct market conditions, shaped by contrasting levels of supply, demand, vacancy and development activity.

Average office vacancy across Warsaw stood at 9.5 percent at the end of Q1 2026, although the overall figure concealed significant differences between districts. Vacancy rates in central locations were recorded at 6.5 percent, compared with 12.2 percent in non-central zones.

According to Emilia Trofimiuk, Research Manager at AXI IMMO’s Research and Analysis Department, the highest levels of vacant office space were concentrated in Służewiec, where availability reached 18.7 percent, followed by the Żwirki i Wigury corridor at 15.4 percent and the Al. Jerozolimskie corridor at 12 percent.

In central Warsaw, limited availability of modern office space, particularly larger contiguous floorplates, is contributing to stronger competition among occupiers and increasing rental pressure in prime schemes. Outside the city centre, landlords are facing a more competitive leasing environment driven increasingly by pricing and flexible lease structures.

The imbalance between central and peripheral locations is also reflected in current development activity. Approximately 120,000 sqm of office space was under construction in Warsaw at the end of the first quarter, with more than 110,000 sqm concentrated in central districts. Only around 4,000 sqm was being developed in non-central locations. Overall development activity declined by 46 percent year-on-year.

AXI IMMO noted that developers are continuing to prioritise projects in central locations perceived to offer stronger long-term demand and greater prestige. Among the largest office projects currently under construction are Towarowa 22, including the AFI Tower development by AFI Europe in Wola, Skyliner II by Karimpol near Rondo Daszyńskiego, and Upper One developed by Strabag Real Estate along Al. Jana Pawła II.

Outside the city centre, development activity remains limited and is focused mainly on smaller-scale projects and the repositioning of older office buildings. Areas such as Służewiec and the Al. Jerozolimskie corridor continue to see refurbishment and modernisation efforts aimed at improving competitiveness in a more price-sensitive market.

The report concludes that Warsaw’s office sector is increasingly functioning as a “two-speed” market. Prime central locations continue to attract capital and tenant demand for high-quality office space, while non-central districts face higher vacancy levels and stronger competition based on financial incentives and leasing flexibility.

According to AXI IMMO, the widening gap between these market segments is forcing both landlords and occupiers to adopt more location-specific strategies, with differences between districts increasingly shaping the operating conditions of the wider Warsaw office market.