Changes in the Polish office market

Katarzyna Lipka • 18/08/2020

Cushman & Wakefield summarises H1 2020 in the regions


  • The total office stock of Poland’s nine largest markets expanded by 6% year-on-year in H1 2020
  • Gross take-up was down by 7% on the same period in 2019
  • The office investment volume fell by 21% compared with the same period last year
  • The all-market vacancy rate stood at 8.9% in Q2 2020


In H1 2020, the total office stock of Poland’s nine largest markets (Warsaw, Krakow, Wrocław, Tricity, the Upper Silesian and Zagłebie Metropolis, Poznań, Łódź, Lublin, and Szczecin) reached close to 11.5 million sq m, up by 6% on the same period in 2019.

Warsaw’s new supply in H1 2020 amounted to 106,800 sq m delivered in five office buildings. Regional cities saw a total of 175,600 sq m completed across 15 projects; the largest office completions included Olivia Prime B in Gdansk, High 5ive in Krakow, the first building of the Face2Face complex in Katowice, and the Giant Office in Poznań.

Although no legislation limiting construction works was introduced during the lockdown, completion of some projects was postponed from the second to the third quarter of 2020 due to protracted administrative procedures, limited labour availability and potential disruptions to supply chains,” says Jan Szulborski, Senior Consultant, Cushman & Wakefield.

At the end of June 2020, the development pipeline included 106 projects totalling 1.6 million sq m of floor space, most of which was under construction in Warsaw (28), Krakow (21), Tricity (17), Łódź (14), and Katowice (13). Most projects are running to schedule, but a supply gap is, however, expected on most markets in the years 2022-2023 as decisions to commence new projects have been mothballed. Projects fully financed using own funds may be an exception though.


Office take-up hit a total of 669,600 sq m in H1 2020, down by 5% on the same period in 2019, with most transactions having been commenced in the pre-pandemic environment. The largest deal on the Warsaw office market was the PZU Group’s pre-let of 46,500 sq m in Generation Park Y, and in regional cities – the renegotiation of ABB’s 20,000 sq m lease in Axis.


The deteriorating health of the economy pushed the overall vacancy rate up by 0.6 pp quarter-on-quarter to 8.9% at the end of Q2 2020, albeit still lower year-on-year compared to where it was in the same period in 2019. In addition, due to the economic uncertainty caused by the outbreak of the COVID-19 pandemic, there was a notable increase in sublease listings on the market. Cushman & Wakefield estimates that at the end of Q2 2020 there was nearly 120,000 sq m of office space available for sublease, which volume is not included in the statistics for available office space. 


Despite the worsening sentiment of market participants, prime headline rents remained unchanged at EUR 24 EUR/sq m/month in the very heart of Warsaw, and at EUR 12-15 EUR/sq m/month in regional cities. Rental rates remained flat as some deals were closed on pre-pandemic terms, say experts at Cushman & Wakefield.

A correction to commercial conditions is likely in the coming quarters if demand for office space weakens and the economy remains stuck in low gear,” concludes Katarzyna Lipka, Head of Consulting & Research, Cushman & Wakefield.

Download the full version of the report 



 Eliza Bingul
Eliza Bingul

Associate Director • Warsaw

More Insights

Insights • Economy

COVID-19 Impacts on Poland Real Estate

A brief weekly update on the impacts of COVID-19 pandemic on commercial real estate in Poland.
Katarzyna Lipka • 16/09/2020
Future of workplace Report
Insights • Workplace

The future of workplace. How will Covid-19 and data shape the new workplace?

Through our proprietary Experience per Square FootTM (XSF) tool, Cushman & Wakefield has captured more than 2.5 million data points from workers all over the globe in the pre-COVID-19 era and a further 1.7 million data points from more than 50,000 respondents in the current work from home environment.

Katarzyna Lipka • 20/07/2020
Insights • Coworking

Role of the sharing economy in the Polish economy. Cushman & Wakefield presents its latest report “Co-living – a new era for the real estate investment market in Poland”

Co-living is making inroads into the Polish real estate market. It is a trend where residents share living space and a set of interests and values in line with their financial capabilities - it has already gained traction in the United States and Western Europe, but is just beginning to emerge in Poland, thereby offering a huge growth potential.
Małgorzata Dziubińska • 03/03/2020


Get in touch with one of our professionals.