Demand for Office Premises in Poland Remains High

In 2018, the demand for office premises in Poland was 1.5 mln sqm. JLL estimated that around 750,000 sqm of those spaces were already available. Meanwhile, 1.6 mln sqm are still to be delivered.

The same report indicates that the previous year was a period of economic growth in Poland. In fact, the country demonstrated GDP growth at 5.3% which was the best number in more than a decade. No wonder, the demand for office space as well as construction activity were so high. Also, the market witnessed an interesting trend in flexible work premises (“flex”) growth.

A representative of JLL noted that flex sector grew because of many startups and an outstanding business environment in the country. In fact, Poland is #7 in the world and #3 in Europe in the rating of the friendliest environment for startups (CEOWORLD Magazine). Startups require opportunities for connecting people and non-standard thinking, and this is why flex premises became so popular. But corporations are also paying attention to such space. So, the main flex operators have 230,000 sqm of premises to offer to businesses; around 60,000 sqm is situated outside Warsaw.

Demand in Kraków is the biggest (after Warsaw)

JLL estimated that the demand for office space was 1.5 mln sqm with more than 640,000 sqm outside the capital. Kraków is the leader (32% of the whole amount outside the capital). Warsaw demonstrated outstanding results too, close to what it had last year.

It is not a secret that Deloitte, IBM, Santander Bank, and Nokia concluded the most significant lease transactions in different cities.

Regions are expecting 5 mln in supply

In 2018, there was about 744,000 sqm of office premises available. More than 500,000 sqm is situated outside Warsaw. The total volume throughout the country was more than 10 mln sqm.

Currently, there is about 1.6 mln sqm in the construction phase, 720,000 is situated in Warsaw. The total office volume in 2019 in regions is expected to be more than 5 mln sqm after a number of buildings are delivered.

Office premises and their prices

Because so many businesses are looking for good premises, the percentage of vacant units decreased in all main markets throughout the country. At the end of 2018, the vacancy rate in the capital was less than 9% and outside the city less than 8.5%. Available premises represent 8.5% of the general amount throughout Poland.

Note that the prime rents in the center of Warsaw vary from €17.0 to €23.5/sqm/mo; premises in the comfortable areas (not center) go from €11.0 to €15.0/sqm/mo. Currently, Kraków, Poznań, and Wrocław are the most expensive. Lublin remains the most affordable.


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