Pharmaceutical sector - sixth largest office tenant in Warsaw showing clear interest in locations outside the city centre
According to the latest analysis by international consultancy Cushman & Wakefield, the pharmaceutical sector plays an important role in the Warsaw office market - the largest office hub in Poland. Companies in this innovative industry, involved in research and development, manufacturing and biotechnology, now occupy around 172,000 sq m of office space, making them the sixth-largest tenant sector in the capital in recent years. Between 2020 and 2024, they accounted for 5% of the total leasing volume. The report 'Zoom in on Pharma sector. The pharmaceutical sector in the Warsaw office market' also indicates the clear preference of tenants from this sector - the dominant part of the leased space is located outside the city centre.
The pharmaceutical sector in Poland - growing role, high ambitions
The Polish pharmaceutical industry is a sector with strong growth potential, particularly in the context of rising health expenditure, an ageing population and increased demand for medicines and health-related services. There are more than 700 pharmaceutical companies operating in the country, 221 of which are located in Warsaw. According to PARP's report "The Medical Devices and Pharma sector in Poland" of 2024, the pharmaceutical industry employs, according to calculations, approximately 80-100 thousand employees nationwide, and its value is estimated at EUR 11.5 billion in revenues annually.
Although the share of employment in pharmaceutical production relative to the total manufacturing industry in Poland (0.97%) is lower than the EU average (1-3%), the expected growth in production, support for generic drugs and the planned relocation of supply chains in Europe create a strong foundation for further development of the sector in Poland.
Health spending - Poland is catching up
"In 2023, Poland spent 5.7% of its GDP on healthcare, nominally representing 41% of the EU average in per capita terms. Although the country still ranks among those in EU with lower spendings, cumulative public health expenditure grew by an impressive 145% between 2014 and 2023, with annual growth over the coming years expected to average 8%," says Vitalii Arkhypenko, Market Analyst, Cushman & Wakefield.
The structure of public expenditure on health in Poland shows a significant predominance of hospital costs (61% of all expenditure against an EU average of 44%) and a relatively low share of funds allocated to research and development - just 1.4% of GDP against an EU average of 2.2%.
Warsaw attracts pharmacy leaders
The capital's office market is a central location for the pharmaceutical sector. Nineteen of the 20 pharmaceutical companies with the highest 2022 revenues in Poland have their office in Warsaw. This is evidence of the sector's high interest in the capital.
"The data we collected confirms the dynamic development of demand for offices among companies related to the pharmaceutical sector - from 100,000 sq m leased between 2010 and 2014, through 150,000 sq m between 2015 and 2019, to almost 172,000 sq m between 2020 and 2024. This growth is related, among others, to the expansion of shared service centres operating in this sector," says Ewa Derlatka-Chilewicz, Head of Research, Cushman & Wakefield.
Stable tenants in non-central locations - the specifics of the pharmaceutical industry
The vast majority (74%) of space occupied by the pharmaceutical sector is in non-central locations. In comparison - sectors such as finance or IT are more likely to choose city centres. For pharmaceutical companies, factors such as parking availability and easy access to the airport are important, especially for organisations with a fleet of vehicles and international operations.
The most popular locations are:
- Służewiec - 40% of the area,
- Centre West - 16%,
- Żwirki i Wigury corridor - 11%.
"As many as 62% of all transactions concluded by pharmaceutical companies in Warsaw between 2020 and Q1 2025 were renegotiations - this is well above the market average of 41%. Regardless, pharmaceutical companies are among the most demanding tenants in the market. Both the location of the office itself and the amenities that are available in the vicinity of the building are analysed in detail to ensure the highest possible employee satisfaction. Equally important is the quality of the office space itself. This must meet high expectations in terms of the standard of the space, availability of the most advanced technological solutions and sophisticated design. These criteria are complemented by environmental certification, which more and more often no longer applies solely to an office building, but to a particular tenant's space," emphasises Piotr Capiga, Deputy Head of Occupier Services Warsaw, Office Agency, Cushman & Wakefield.
As Cushman & Wakefield experts point out, manufacturing and logistics are particularly important in the pharmaceutical sector, which also influences companies' decisions on the location of their offices, warehouses and production facilities.
"Logistics is absolutely crucial to the functioning of the pharmaceutical sector - from researching needs to delivering the finished drug to the patient. The rapid growth of the industry and increasing demands, such as the increasing need for 'cold chain' solutions, mean that we need more and more modern, highly specialised warehousing facilities. These must meet stringent safety and quality standards to ensure uninterrupted patient access to essential preparations. Investing in such advanced logistics infrastructure is key to supporting the overall growth and resilience of the pharmaceutical sector," points out Tomasz Bulej, Leasing Manager, Associate, Industrial & Logistics Agency, Cushman & Wakefield.
Offices for health and the future
The Cushman & Wakefield report also points to changes in office space design. More and more companies are implementing the hybrid working model, investing in certifications such as WELL and ESG targets, and thus creating spaces that foster collaboration and care for the well-being of employees. Which naturally shifts the attention of tenants towards modern facilities.
"Almost half (48%) of the space currently occupied by the sector is in buildings built after 2014. We anticipate that companies located in older facilities will look to relocate to newer spaces or modernised spaces that meet current environmental and comfort standards in the coming years. This will mobilise owners of older facilities to work on upgrading them to retain tenants, attract more and prevent their assets from going out of business," explains Katarzyna Lipka, Head of Strategic Consulting and ESG Advisory, Cushman & Wakefield.
Polish pharmacy at the forefront of Europe
The average lease size of office space by pharmaceutical companies in Poland is 1,560 sq m, which places Warsaw in the upper range compared to Western Europe (the average range is 1,000-1,700 sq m). This confirms that the Polish capital is becoming an increasingly competitive market for global players in the pharmaceutical industry.
Want to explore opportunities for your business in the pharmaceutical sector? Contact our expert: Ewa Derlatka-Chilewicz or Zuzanna Krech, to find the right space, strategy, and support for your growth.