The regional office market in Poland (Kraków, Wrocław, Tricity, Katowice, Łódź, Poznań, Szczecin, and Lublin) is adapting to evolving conditions. The high availability of office space (an average of 17.8%) prompts tenants to take up greater flexibility in lease negotiations, while developers are reducing their activity (120,000 sq m of new supply delivered in 2024). Despite challenges in gross take-up (710,000 sq m, -5% y/y), stabilisation is observed, with office building owners focusing on improving building standards and introducing flexible leasing models, says Axi Immo.
Office market in regional cities:supply slowdown
The total modern office space in regional cities currently amounts to 6.78 million sqm (+2% y/y). However, the scale of new investments is declining – in 2024, only 120,000 sqm was delivered to the market (-56% y/y). Kraków, Wrocław, and Tricity remain the largest regional markets, holding respective shares of 27%, 20%, and 16% of total regional office stock. Among the largest completed projects were investments by Cavatina – Grundmana Office Park A in Katowice (20,700 sqm) and Quorum Office Park A in Wrocław (18,200 sqm). Vastint also delivered the B10 office building in Wrocław (14,100 sqm). Currently, 230,000 sqm of office space is under construction, with Kraków and Poznań leading activity. The largest projects under construction include AND2 in Poznań (40,000 sqm, Von der Heyden Group) and Tischnera Green Park 1 in Kraków (24,000 sqm, Stalprodukt). The high level of unoccupied space is causing developers to proceed cautiously. The average vacancy rate in regional cities stands at 17.8% (+0.3 pp y/y), with the highest vacancy rate in Katowice (23.2%) and the lowest in Szczecin (7.7%).
Emilia Trofimiuk, Research Manager, Research Department, AXI IMMO Group, explains:“Decisions to launch new investments are being made with great caution. A crucial factor will be securing pre-leases at the preparation stage – before a project enters the execution phase, owners will aim to ensure a stable occupancy level. Meanwhile, the high availability of office space benefits tenants, increasing their negotiating power. Building owners are adapting their offerings, proposing more competitive lease terms, and investing in modernisation and additional amenities for tenants.”
Take-up: lease renewals are the key trend
In 2024, tenant activity in regional cities amounted to 710,000 sqm (-5% y/y). The transaction structure shows a significant increase in the share of renegotiations and lease renewals (51%) at the expense of new leases (41%). The highest leasing activity was recorded in Kraków, Wrocław, and Tricity, accounting for 37%, 21%, and 16% of total regional take-up. These are also the cities with the largest office stock. Subleasing remains a popular trend, enabling companies to optimise rental costs. The IT and business services sectors continue to dominate tenant take-up. Volvo Tech Hub was the largest new lease transaction in 2024 in regional cities, leasing 10,100 sqm in Brain Park C in Kraków.
Stable rents, rising service charges
Asking rents in most office buildings in regional cities remain stable, ranging from €9.00 to €17.80 per sqm per month, with the highest rates observed in Kraków and Poznań. However, service charges have increased and range from PLN 9.00 to PLN 36.80 per sqm per month. The rising service charge costs stem from increasing building maintenance and energy expenses.
Monika Rykowska, Head of Research, AXI IMMO Group, summarises: “Forecasts for 2025 indicate moderate developer activity, approx. 160,000 sqm of new office space will be delivered to regional markets. Decisions on further investments will depend on pre-lease levels and market demand. On the take-up side, we expect tenants to continue optimising their occupied space while maintaining high office fit-out and design standards. The importance of flexible formats is also growing – both in the co-working model and serviced offices managed by external operators or building owners.”
