Friday, 14 August 2026
Warsaw’s office market is entering a period in which access to high-quality space, rather than simply rental cost, is becoming a central issue for corporate occupiers. Strong leasing activity, falling vacancy in central districts and a historically limited development pipeline are encouraging companies to begin planning relocations and lease renewals much earlier.
The change is particularly evident among larger occupiers seeking modern offices in central Warsaw. Although the capital still had roughly half a million square metres of vacant office accommodation at the end of June, availability is unevenly distributed and a significant proportion is outside the locations and building categories preferred by major companies.
Warsaw’s overall office vacancy rate fell to 8.5% at the end of the first half of 2026. In central locations it was considerably tighter at 4.8%, while availability around Rondo Daszyńskiego dropped to approximately 3.6%. Outside the centre, vacancy remained substantially higher at around 11.8%, illustrating the growing difference between prime and secondary parts of the market.
This increasingly divided market means that headline vacancy figures can overstate the amount of space that is realistically available to companies requiring large, modern and centrally located offices.
Leasing activity rebounds strongly
Occupier activity accelerated sharply during the second quarter.
Total Warsaw office take-up reached approximately 420,000 sqm during the first six months of 2026, an increase of 38% compared with the same period last year. Net take-up amounted to around 220,000 sqm.
The figures nevertheless require some qualification. Renewals accounted for a substantial proportion of transactions, meaning the increase in gross leasing does not represent an equivalent expansion in the amount of office space occupied by companies.
Several large transactions contributed to the first-half result, including Frontex renewing approximately 21,500 sqm at Warsaw Spire B, Visa Europe taking around 17,300 sqm at The Bridge and Poczta Polska renewing approximately 17,000 sqm at Domaniewska Office Hub. Business services, finance and technology companies were among the most active occupier groups.
For landlords, renewals are nevertheless important because companies remaining in their existing premises prevent substantial blocks of space from returning to the market.
Development slowdown limits alternatives
The greater concern for occupiers is the amount of new space approaching completion.
Warsaw had approximately 130,000 sqm under construction across five principal office projects at the end of June. CBRE puts total modern stock at almost 6.24 million sqm, meaning the current construction pipeline represents only a small addition to the existing market.
Around 45,200 sqm of new and refurbished space had been delivered during the first half according to CBRE, while AXI IMMO places first-half additions at approximately 50,000 sqm depending on methodology. Both datasets point to the same underlying trend: development activity remains unusually subdued.
More than 90% of the space currently being developed is concentrated in central Warsaw.
The shortage is also being reinforced by what is happening to the existing stock. Older offices are increasingly being withdrawn for refurbishment, redevelopment or conversion to other uses. Warsaw’s total modern office inventory consequently declined slightly during the second quarter despite new projects reaching completion.
With office developments requiring several years from preparation to delivery, projects beginning today cannot provide an immediate solution. This creates the prospect of continued competition for the strongest buildings even if development activity begins recovering.
Tenants rethink when negotiations should begin
These conditions are changing corporate property strategies.
Starting a headquarters search approximately one year before an existing lease expires can leave a large occupier with relatively few realistic relocation alternatives. Companies with substantial space requirements increasingly need to evaluate options several years ahead, particularly where they want new or recently completed offices in central locations.
Michał Gliński, Managing Partner at Wardyński i Wspólnicy, argues that additional preparation time is also important from a legal perspective. Beginning negotiations earlier gives occupiers greater opportunity to structure lease provisions around future requirements rather than accepting compromises because an existing agreement is approaching expiry.
For major tenants, this can include negotiating expansion rights, renewal options, indexation provisions, service-charge arrangements, subletting flexibility, termination mechanisms and the treatment of fit-out expenditure.
The consequences of waiting become greater as availability declines. A company approaching expiry without a credible alternative building can find that remaining with its existing landlord is effectively its only operationally practical option.
Prime rents respond to scarcity
The reduction in central vacancy is also feeding through to rents.
Prime central headline rents are generally being reported at approximately EUR 24–29 per sqm per month, while asking rents for selected premium buildings can reach around EUR 32 per sqm.
The distinction between asking and effective rents remains important. Incentives, fit-out contributions, rent-free periods and other commercial conditions can substantially alter the eventual occupancy cost.
Nevertheless, the direction of travel is clear. Landlords controlling modern space in the strongest locations have greater negotiating leverage than owners of older properties or buildings outside the centre.
This makes Warsaw increasingly a two-speed office market rather than a citywide landlord’s market. Companies prepared to consider secondary locations still have significantly more choice, while competition is becoming considerably stronger for premium central properties.
Ownership emerges as another headquarters option
The shortage of suitable rental opportunities is also making building ownership worth considering for some occupiers.
Recent Warsaw transactions have demonstrated that smaller office properties can provide an alternative for organisations with sufficient capital and a long-term requirement for headquarters or specialist facilities.
WB Electronics, for example, acquired Mokotowska Square after previously being a major occupier of the approximately 8,600 sqm property. Other buildings have been acquired for corporate or institutional use, including properties intended for educational and operational functions.
Ownership can remove exposure to future lease negotiations and provide considerably greater control over refurbishment and building operations. It also changes the financial and operational responsibilities carried by the occupier.
Companies considering this route must assess whether to acquire a property directly or purchase the corporate vehicle owning it, alongside legal, technical, planning, environmental and tax due diligence.
For most businesses, leasing will remain the preferred approach. However, owner-occupation is becoming a credible alternative for selected companies where suitable buildings are available and long-term occupation can justify the capital commitment.
The more immediate change in Warsaw is therefore strategic rather than transactional. The city does not face a shortage of every type of office building, but it does have increasingly limited availability of the modern central accommodation most sought after by large occupiers.
With central vacancy below 5%, development restricted to around 130,000 sqm and strong leasing activity absorbing available space, corporate property decisions are moving further up the business planning agenda. For companies with major Warsaw leases expiring during the next several years, the most valuable negotiating advantage may increasingly be the amount of time they have before they need to move.
