Warsaw’s office sector has shifted from an investment boom to a premium landlord’s market

Warsaw’s office market has entered a new phase in which severely constrained new supply and growing occupier demand are reshaping the competitive landscape. Over the last six years, the market has undergone significant transformation. Following a wave of impressive investments starting in 2020, the number of office development projects declined sharply, while tenant activity increased steadily. As a result, office space availability has dropped considerably, reaching particularly low levels in the most sought-after central locations. This has strengthened the negotiating position of building owners and shifted market dynamics in favor of landlords.

Demand has returned to pre-pandemic levels

Following the uncertainty caused by the pandemic, tenant activity in Warsaw rebounded quickly. In 2020, total leasing volume fell to just over 600 thousand sq m, approximately one-third below the record level recorded in 2019 (nearly 880 thousand sq m). Leasing activity recovered to around 650 thousand sq m in 2021 and exceeded 860 thousand sq m in 2022, before reaching approximately 750 thousand sq m in 2023.Demand remained strong throughout 2024–2026. A quarterly record was set in the fourth quarter of 2025, when approximately 310 thousand sq m of office space was leased, while more than 280 thousand sq m was transacted in the second quarter of 2026. These figures confirm that the market has returned to the level of leasing activity last seen during the pre-lockdown boom.

– The very strong leasing volume recorded in the second quarter of this year confirms that occupier demand remains robust. At the same time, the shrinking availability of office space—particularly in central Warsaw—has pushed vacancy to historically low levels, fundamentally changing leasing conditions. Companies planning to relocate or renegotiate their leases are increasingly finding that delaying decisions reduces the range of available options and increases the risk of losing the most attractive opportunities. Competition for prime office space is now significantly stronger than it was a year ago, while the negotiating position of owners of the best buildings continues to strengthen. As a result, the timing of the office search process has become a critical element of a successful leasing strategy – says Emilia Legierska, Transaction Director at Walter Herz. Central locations continue to attract the strongest tenant demand. Today, lease renewals and renegotiations account for around half of all transactions, highlighting that many companies are prioritizing securing their existing premises rather than relocating.

Office stock increased by 650 thousand sq m, but market expansion has slowed significantly

At the beginning of 2020, Warsaw offered approximately 5.59 million sq m of modern office space. By the end of the first half of 2026, total office stock had reached around 6.24 million sq m, representing an increase of nearly 650 thousand sq m.

The largest addition to supply occurred between 2020 and 2022, when many of the city’s landmark office developments were completed, including The Warsaw HUB, Mennica Legacy Tower, Skyliner, Generation Park Y, Warsaw UNIT, Fabryka Norblina, Widok Towers, Central Point, Forest, SkySawa, Intraco Prime, Varso office complex, Lixa and P180. These developments have played a defining role in shaping Warsaw’s modern central business district. 

Between 2023 and 2026, projects completed included Lakeside, Studio A I B, The Park 9, Bohema Offices, Lixa E, Vibe A, Viridis B, The Form, Office House, The Bridge, Stoen Operator and Vena.

Today, modernized projects are playing an increasingly important role in Warsaw’s office market. During the period under review, major renovation works were completed at Saski Crescent, alongside the modernization of office buildings on Przemysłowa Street. This trend reflects the market’s growing maturity and the increasing importance of repositioning existing office assets.

New office supply falls to historic lows

Following the high level of development activity between 2020 and 2022, the volume of new office developments in Warsaw has been steadily declining since 2023.During the first half of 2026, over 45 thousand sq m of office space was completed in Studio A and Vena, while the refurbishment of the Przemysłowa 26 office building was also completed. At the same time, however, seven older office buildings with a combined area of approximately 44 thousand sq m were withdrawn from the market to make way for redevelopment and alternative uses. The accelerating wave of demolitions, which has become increasingly evident across Warsaw, is further limiting the net growth of the city’s modern office stock.

- Analysis of new office supply between 2020 and 2026 shows a steady decline in the volume of completed office space. The volume of office space under construction in Warsaw fell to just over 140 thousand sq m, the lowest level recorded in over a decade. However, less than 30 thousand sq m of new office space is expected to be delivered by the end of this year. Most ongoing developments are concentrated in the city center, particularly around Daszyńskiego Roundabout. At the same time, effective supply is being further constrained by the withdrawal of older office buildings from the market - says Kamila Królikowska, Associate Director at Walter Herz. - Although Warsaw still offers just under 500 thousand sq m of vacant office space, a significant proportion of this stock is located in older buildings outside the city center, where the quality and specifications often no longer meet the expectations of today’s occupiers - she adds.

Projects currently under construction include AFI Tower (approx. 50 thousand sq m), Skyliner II (23 thousand sq m), Upper One (35 thousand sq m), which is being developed on the site of the former Atrium International office building, and Puławska 533 (approx. 4 thousand sq m). Construction is also underway on LightOn, a new office development replacing the demolished Prosta 69 building. The project located near Rondo Daszyńskiego, will deliver 23,6 thousand sq m of modern office space. Together with Upper One, it is one of the few developments based on the demolition of an older building while retaining the site's office use.

Since 2020, more than 500 thousand sq m of office space across over 50 buildings has been withdrawn from Warsaw’s office market. In 2025 alone, total office stock declined by more than 160 thousand sq

m. Moreover, 2024 marked the first year in which the market recorded a negative supply balance, with more office space removed from the market than delivered through new completions.

Vacancy rates at their lowest levels in years

One of the most significant trends observed over the last six years has been the steady decline in vacancy rates. Having stood at 7.5 percent at the beginning of 2020, the vacancy rate rose to 12.7 percent by the end of 2021, driven by a combination of record new supply and the impact of the pandemic. This was followed by a sustained period of market absorption. Vacancy declined to 11.6 per cent at the end of 2022, 10.4 percent at the end of 2023, 10.6 percent at the end of 2024, 9.1 percent at the end of 2025, and reached 8.5 percent by mid-2026. As a result, the amount of vacant office space in Warsaw has dropped to approximately 480 thousand sq m.

The sharpest decline in availability has been recorded in the city center. Vacancy there has fallen to 4.8 percent, while in the western part of the Central Business District it has dropped to just 3.6 percent—the lowest levels recorded in the last six years.

Outside the city center, market conditions remain more varied. The average vacancy rate stands at 11.8 percent, with the greatest availability still concentrated in the Służewiec office district, where vacancy is around 17 percent. Despite this, Służewiec continues to rank among Warsaw’s most active office submarkets in terms of tenant demand.

The market is maturing

Data from 2020–2026 shows that Warsaw’s office market has entered a phase of selective growth. The period of dynamic investment expansion has given way to constrained supply, driven by high development costs and greater investor caution. At the same time, the modernization of existing buildings and their adaptation to contemporary standards are becoming increasingly important.

Meanwhile, sustained strong demand and record levels of tenant activity continue to push vacancy rates lower, particularly in prime locations. This is resulting in growing competition for top-quality office space and further strengthening the position of owners of modern, well-located assets. Older office buildings located outside the city center, meanwhile, will face increasing competitive pressure and will need to differentiate themselves through higher-quality space, more extensive refurbishment, a stronger overall offering, and more attractive financial terms.