In the fourth quarter of 2024, Warsaw’s office market continued to experience stable occupier demand amid constrained new supply, with tenants seeking to secure spaces in the city center and expecting sustainable solutions, according to BNP Paribas Real Estate Poland’s “At a Glance: Warsaw Office Market, Q4 2024” report.
According to a BNP Paribas Real Estate Poland press release, in the fourth quarter of 2024, “only 11,000 square meters of office space came on stream in Warsaw through a single project: The Form in the City Centre West. This brought 2024’s total new office supply to just over 104,000 square meters, the second-lowest annual figure since records began.”
“Between January and December 2024, the highest level of new office deliveries was recorded in central Warsaw, with over 86,000 square meters completed, accounting for nearly 83% of last year’s total,” explained Malgorzata Fibakiewicz, Senior Director, Office Agency, BNP Paribas Real Estate Poland. “This trend looks set to carry on in 2025, with approximately 90% of the development pipeline scheduled for completion by the end of this year located in the city center.”
“It is also notable,” the report stated, “that while the scarcity of prime land in central Warsaw is likely to stall development activity in this part of the city, developers will require pre-lets before launching new projects in non-central locations.”
Total gross take-up for the fourth quarter reached 244,000 square meters, the report stated, marking a 35% increase compared with the third quarter but a 4% decline year-on-year. Central Warsaw remained the top location for tenants, accounting for over 54% of all office leases.
Demand continued to outstrip new supply, pushing the overall vacancy rate slightly lower in the final quarter. At the end of the fourth quarter of 2024, Warsaw’s vacancy rate stood at 10.6%, marking a slight decrease from the previous quarter. The city center recorded a lower vacancy rate of 8.8%, while non-central locations reported 12% of their stock as unoccupied.
BNP Paribas Real Estate Poland notes that although office availability totaled 664,000 square meters at the end of last year, vacant office space was dispersed across the city and frequently divided into smaller units. Tenants seeking large, open-plan spaces are likely to face challenges in finding the right building. At the end of the fourth quarter, only five office buildings in Warsaw had vacant offices exceeding 10,000 square meters.
Tenants are increasingly seeking ESG-compliant offices, which is also impacting developers’ strategies. “The real estate sector has a huge impact on the natural environment, as the built environment accounts for approximately 40% of worldwide energy consumption and 30% of greenhouse gas emissions,” commented Dorota Mielke, Associate Director, Office Agency, BNP Paribas Real Estate Poland. “As a result, sustainability in real estate has become a priority not only for developers and investors but also for tenants who expect office landlords to minimise environmental impact.”
Finally, the report states, “with growing demand for green certifications such as BREEAM and LEED, the adoption of energy-efficient technologies looks set to be a key factor in the future of the office market. Looking ahead, the evolving legal landscape and a focus on social and environmental responsibility will undoubtedly continue to shape the market. Another important factor at play is rapidly changing work environments.”
“Clients are growing more focused on analyzing the design-cost trade-off, expecting holistic solutions that account for trends such as space revitalization and optimization while providing enhanced functionality,” noted Jan Pawlik, Workplace. “With office design becoming more complex, responsible planning is essential in mitigating risks and, particularly, variability under long-term leases.”
