Thursday, 24 September 2026
Warsaw’s office market is becoming increasingly constrained in its most sought-after locations as strong leasing activity coincides with a limited development pipeline. Vacancy across the capital fell to 8.5% at the end of June 2026, while the rate in central locations dropped to 4.8%. Around Rondo Daszyńskiego, one of Warsaw’s principal business districts, availability was lower still at 3.6%.
Leasing activity reached approximately 420,000 sqm during the first half of 2026, around 38% more than a year earlier. At the same time, only around 28,000 sqm of new office space is expected to be delivered during 2026. With approximately 130,000 sqm under construction at mid-year, more than 90% of it in central locations, the combination of demand and restricted development is reducing the choice available to companies seeking modern offices.
“Warsaw’s office market is entering a very different phase from the one we observed immediately after the pandemic. Today, the challenge is not a lack of demand, but the declining availability of modern office space in the best locations. In the city centre in particular, the choice of large, high-quality units is shrinking rapidly. This is gradually shifting the balance of power in negotiations and means that occupiers planning a relocation should start the process much earlier than they did just a few years ago,” said Sara Romanowska, Senior Advisor, Office Agency, AXI IMMO.
The tightening market is not affecting every property equally. Demand is increasingly concentrated in newer, well-connected and energy-efficient buildings, while ageing offices face greater pressure to undergo refurbishment or repositioning. Some properties are also being withdrawn from office use altogether, further reducing available stock. “Falling vacancy does not mean that every building automatically becomes more attractive. The market is becoming increasingly polarised. Occupiers are focusing on modern, well-located and energy-efficient projects, while older properties need to compete through refurbishment, upgrades in standard or more flexible commercial terms. In some cases, owners are also opting to convert properties to alternative uses, further reducing the office stock,” Romanowska said.
Lower availability in the strongest locations is also affecting commercial terms. AXI IMMO puts headline rents in central Warsaw at between €15 and €28 per sqm per month, while prime properties are achieving approximately €25–32 per sqm per month. The adviser also reports that incentive packages are gradually becoming less generous, strengthening the position of landlords controlling modern space in locations where vacancy is already particularly low.
The shortage is becoming especially relevant for companies requiring larger contiguous offices. With central vacancy at 4.8% and just 3.6% around Rondo Daszyńskiego, occupiers focusing on Warsaw’s main business districts increasingly need to begin relocation or renewal discussions well before their existing leases expire. Development is unlikely to provide significant immediate relief, with AXI IMMO expecting particularly limited completions in 2027 before construction activity begins to recover more visibly from 2028.
“Over the next two years, one of the most important criteria in occupier decision-making may no longer be the rental level itself, but the availability of suitable space. Companies seeking large, modern offices in the best locations will need to plan their requirements further in advance. With a limited pipeline of new projects, a well-prepared leasing strategy and an appropriately early start to the process will become increasingly important,” Romanowska concluded.
