Market in Minutes: Warsaw Office Market Q3 2025 Warsaw sets its sights on downtown, as much as 90% of new supply in the heart of the city. Vacancy rate lowest since 2020

SUPPLY, THAT IS, INVESTMENTS CONCENTRATED IN THE CENTER

Warsaw’s total modern office stock has stabilized at 6.24 million sq. m., of which 46% is in the central zones. The largest amount, as much as 90% of the space was put into use in central zones. This confirms the long-term trend of shifting development activity to downtown areas. By comparison, in 2015-2019 the share was below 45%, to rise to nearly 80% in 2020-2024.

Less than 140,000 sqm of offices are currently under construction (down 50% y/y), 90% of which are also being built in central locations. Among the largest projects under construction in the capital are: Upper One (35,500 sqm), V Tower (31,000 sqm), Studio A (24,000 sqm) and Skyliner II (23,000 sqm).

– Warsaw’s office market is entering a phase of maturity. The dwindling supply of new projects and the growing role of central locations mean that downtown is once again dominating. Development activity has halved, and as much as 90% of new construction has been built in central locations, where vacancy is only 6.9%. This situation strengthens the position of landlords and puts upward pressure on rents – says Daniel Czarnecki, Director of Owner Representation, Savills.

The Savills report indicates that as the volume of new space under construction decreases, the number of office buildings being demolished or repurposed increases. This phenomenon speaks to the evolution of the market structure, in which the reuse of well-located plots of land is becoming increasingly important.

– Demolitions or changes in the function of office buildings no longer concern only outdated buildings located in, for example, Służewiec, but increasingly also those located in the center. Their place is taken by modern investments. Sometimes these are office buildings, and sometimes they are residential or mixed-use developments, combining office, residential, service and recreational functions. This approach increases the efficiency of space use, but also results in a kind of revitalization of the neighborhood, increasing its attractiveness, including visually – says Wioleta Wojtczak, Head of Research at Savills.

DEMAND AND VACANCY: THE CENTER CONTINUES TO ATTRACT TENANTS

Between Q1 and Q3, tenant activity reached just under 487,000 sqm, close to the average in recent years. Central zones accounted for 52% of the total transaction volume (262,800 sqm), while 223,800 sqm was leased outside the center.

High tenant activity in the center translated into a drop in the vacancy rate for all of Warsaw to 9.7%, the lowest level since the fourth quarter of 2020. The center saw a 200 bps y/y drop to 6.9%, while the vacancy rate outside the center remained stable at 12.1%.

The authors of the report emphasize that the average size of newly concluded contracts in the center was 760 sqm, compared to 590 sqm outside the center. The share of renegotiations in the total volume of demand was 42%, and new contracts – 47%.

Jaroslaw Pilch, Head of Tenant Representation, Savills comments:

– The record low vacancy rate in the center is a clear signal to tenants that the best space must be competed for. Shrinking supply makes it necessary for companies to plan relocations further in advance. Analyzing the demand structure, we see that companies are not looking to save money at the expense of location. They prefer to invest in high-quality, well-connected offices that will help attract and retain talent. This is confirmed by the fact that the average area of downtown deals is larger than those outside the center. At the same time, we see that contract renegotiations remain a key component of the market, accounting for 42% of demand, indicating that many companies are betting on staying in proven locations .

UPWARD PRESSURE ON DOWNTOWN RENTS

With limited new supply and declining availability of space, an increase in rental rates has been observed. In the center, asking rates are in the range of 22.50-27.00 euros/sq.m./month, with prime projects reaching 28.00 euros. Outside the center, rates for A-class buildings are 14.00-18.50 euros/sq.m./month, an increase of 0.50 euros since June.

SUMMARY

The Warsaw market maintains stable demand with limited new supply. Savills points out that low vacancy in the center, a low number of office developments and rising rents are signals that the quality, location and efficiency of occupied space play a key role.

Download the report: Market in Minutes: Warsaw Office Market Q3 2025