By the end of 2025, the stock of modern office space in Krakow reached 1.84 million sq. m., confirming the city’s position as the most important regional market in Poland. The largest area remains the center, which concentrates almost 437,000 sqm, or nearly a quarter of the total supply. The southeastern (22%) and southwestern (21%) zones also have a significant share in the market structure.
Limited development activity
New supply in 2025 was limited and appeared only in the third quarter, when 11,900 sqm of office space was completed. Despite the low number of completions, this was the highest result among regional cities. At the end of the year, 55.4 thousand sq. m. remained under construction, mainly in the southwest zone and downtown. The largest projects under construction were Tischner Green Park (24 thousand sq. m.) and the WITA complex (18.9 thousand sq. m.), scheduled for completion in 2026.
“The Krakow office market is in a phase of clear imbalance between demand and supply. On the one hand, we are seeing record tenant activity, on the other hand, a very limited number of new projects in the pipeline. This structure will promote further absorption of available space in the coming quarters, but at the same time will increase pressure on prime locations, especially in the city center. Tenants today are looking for modern, efficient offices, and their availability in the center is becoming increasingly limited.” – emphasizes Marcin Gawlik, Associate, Savills Poland
Record demand and the prevalence of renegotiation
Total lease volume in 2025 reached 269,500 sqm, the highest in the history of Krakow’s office market. The key element of the demand structure was renegotiations, which accounted for 63% of all transactions. New agreements accounted for 28%, while expansions and pre-leases were of limited importance. The highest tenant activity was recorded in the southwest zone, which accounted for one-third of the total lease volume.
Smaller offices and more flexibility on the part of tenants
New tenants are increasingly opting for smaller office modules. The average area of a new lease fell to 760 sqm, while renegotiations were for much larger meters, averaging around 2,400 sqm. This trend confirms the growing importance of cost efficiency and a flexible approach to office space planning.
“Companies are increasingly focusing on optimizing the space they occupy rather than relocating. Shorter contracts and a flexible approach to square footage allow them to better respond to changing business needs.” – adds Wojciech Mazur, Associate, Savills Poland
Vacancy rates down and pressure on prime locations
At the end of 2025, the vacancy rate in Krakow stood at 18.4%, recording a 60 basis point year-on-year decline. However, the availability of space varies strongly – in the city center it is only 6.3%, while in the northern zones it exceeds 20%. More than 80% of vacant space is in buildings completed before 2020, limiting the offer of modern offices that meet current tenant expectations and may result in continued high levels of renegotiation in anticipation of new projects.
Rents in A-class buildings are in the range of 14-18 EUR/sq.m./month, with the best projects over the past year recording an increase in rates of about 1 EUR. Utility costs have stabilized at PLN 20-30/sq.m./month.
Strong demand at the same time as low new supply creates potential for new investments and confirms Krakow’s strong position as a regional office real estate market.
