Saturday, 15 March 2025
The Warsaw office market remained stable in 2024, with continued high demand for centrally located office space and a significant slowdown in new supply. According to the latest report “At a Glance: Office Market in Warsaw – Q4 2024”, published by BNP Paribas Real Estate Poland, tenants are increasingly prioritizing sustainability and flexible workspaces as part of their leasing decisions.
Lowest New Supply in Years
In Q4 2024, Warsaw saw the delivery of just 11,000 square meters of new office space, all within a single development—The Form, located in the Centrum Zachód zone. For the entire year, 104,000 square meters of new space were added to the market, marking the second-lowest annual supply level in history.
“Between January and December 2024, over 86,000 square meters of new space was delivered in central locations, accounting for 83% of the total new supply. This trend is set to continue, as around 90% of office space under construction with completion expected by the end of 2025 is being built in the city centre,” said Małgorzata Fibakiewicz, Senior Director of the Office Space Leasing Department at BNP Paribas Real Estate Poland.
Developers face challenges in expanding outside the central business district, as projects in these areas typically require pre-lease agreements before construction can begin. Additionally, the limited availability of attractive land in central Warsaw could further restrict development activity.
Demand Outpacing Supply
Despite the low new supply, total gross demand for office space in Q4 2024 reached 244,000 square meters, a 35% increase compared to Q3, though 4% lower year-on-year. The city centre remains the most sought-after location, with 54% of all leases signed in this area.
The imbalance between strong demand and limited supply contributed to a slight decline in the vacancy rate, which stood at 10.6% at the end of 2024. Vacancy was lower in the city centre (8.8%) but higher outside the centre (12%).
Although Warsaw had 664,000 square meters of available office space at the end of the year, much of it consisted of smaller, scattered modules, making it challenging for tenants looking for large, open-plan office spaces. By the end of Q4 2024, only five office buildings in Warsaw had over 10,000 square meters of available space.
Sustainability and ESG Compliance Shape Market Trends
ESG (Environmental, Social, and Governance) standards are playing an increasingly significant role in tenant decision-making, prompting developers to prioritize sustainable office buildings.
“The real estate sector accounts for up to 40% of global energy consumption and 30% of greenhouse gas emissions. As a result, sustainable development has become a key priority for developers, investors, and tenants alike,” said Dorota Mielke, Deputy Director of the Office Space Rental Department at BNP Paribas Real Estate Poland.
Demand for energy-efficient buildings with ecological certifications, such as BREEAM and LEED, is rising. The adoption of energy-saving technologies and green building initiatives is expected to be a major factor shaping the future of Warsaw’s office market.
Changing Work Environments Drive Office Design Trends
As companies rethink how they use office space, there is increasing emphasis on flexibility, revitalization, and long-term planning.
“Clients are closely evaluating the relationship between office design and budget, seeking comprehensive solutions that incorporate trends like space optimization and functionality,” said Jan Pawlik, Workplace Management Director at ISS. “Office planning is becoming more complex, requiring strategic foresight to minimize long-term risks, particularly in the face of market volatility and shifting workplace trends.”
Outlook for 2025
With new supply expected to remain low and demand for prime office space continuing, competition for modern, centrally located offices will likely intensify. ESG compliance, sustainability, and flexibility will remain key considerations for both tenants and developers, shaping investment decisions and office market dynamics in the coming year.
