Tuesday, 11 November 2025
Poland’s business services sector is moving into a new stage of development, with companies shifting away from traditional cost-driven outsourcing toward high-value functions such as IT, advanced analytics, cybersecurity and R&D. This evolution is changing the structure of employment and altering office leasing strategies across the country, according to market observations from Walter Herz.
Rising labour costs and higher operational expenses mean that Poland is no longer chosen primarily as a low-cost outsourcing destination. At the same time, automation and the growing use of AI are reducing the need for repetitive transactional roles. Instead, business service centres are expanding into specialised activities that require highly qualified talent and deliver higher added value. Industry data indicates that more than 435,000 to 450,000 people are currently employed in business services in Poland, with the sector still adding new jobs despite global relocation trends. Rather than withdrawing, companies are upgrading the complexity of services delivered from Polish locations.
This transformation is strongly influencing the office market. Poland’s regional office cities, which previously attracted large-scale outsourcing projects, are seeing higher vacancy rates as demand for extensive back-office space decreases. Nevertheless, business services remain one of the most important groups of tenants, accounting for roughly 16 percent of total office demand nationwide. Kraków and Wrocław continue to record the highest leasing activity among regional markets, supported by renegotiations from companies such as Motorola Solutions and Shell.
Tenant behaviour is shifting from expansion to consolidation. Companies are opting for smaller but better located office spaces, choosing modern Class A buildings with strong transport accessibility and workplace amenities that support collaboration. The trend is particularly visible in Warsaw, where the vacancy rate in the city centre has fallen to approximately 6.9 percent. With very limited new supply under construction, competition for premium space is increasing.
At the same time, leasing strategies are changing. Instead of occupying large, single-purpose office space, companies are organising their portfolios around a central office that serves managerial and cultural functions, complemented by flexible space used for temporary projects or recruitment needs. Subleasing is gaining popularity as firms optimise underused space. Relocations typically involve a reduction of around 20 to 30 percent in leased area, although expectations around hybrid work and return-to-office policies can limit the scale of these reductions.
As Poland solidifies its position as a competence hub rather than a cost-based outsourcing market, investment decisions are shifting toward improving workplace standards, supporting advanced processes and prioritising ESG compliance. The sector is no longer expanding its office presence through added floor area, but through higher-quality, more efficient and more specialised workspace environments.
Author: Mateusz Strzelecki, Partner / Head of Tenant Representation at Walter Herz
