The Polish office market is entering a new phase where fit-out costs are rising while move-in-ready space becomes scarce, according to an Axi Immo analysis.
One area where changes in the office market are most evident is the cost and availability of fully fitted, turnkey office space. "Before the pandemic, it was possible to secure an office fully prepared for occupation within a budget of around €550-600 per sqm," says Karolina Słysz, Axi Immo. "Today, comparable offers are rare. Tenants wishing to move into ready-made space must expect to pay a premium or sign longer leases - often seven or ten years instead of the standard five."
The market currently operates with three clearly defined fit-out standards. The basic standard includes fundamental finishing materials such as low-grade carpeting, vinyl flooring, standard modular suspended ceilings, white-painted walls, simple open-plan layout with minimal meeting rooms, and plasterboard partitions. The cost amounts to approximately €700-900 per sqm.
The mid-range standard includes higher-grade carpets, colour accents aligned with company visual identity, LED lighting, zoned air conditioning, glazed partitions, enclosed offices and relaxation areas. Simple bespoke joinery elements are also common. The cost currently stands at €1,000-1,200 per sqm. The highest standard comprises spaces based on bespoke designs and high-quality materials such as stone, glass, advanced acoustic solutions and decorative ceilings. Costs range from €1,300 to 2,000 per sqm or more.
"Rising fit-out costs are driven not only by higher prices of materials and construction services, but also by tenants' growing expectations regarding office space quality," adds Słysz. "Offices must meet additional criteria - from acoustics and ergonomics to ESG compliance and environmental certifications such as Leed or Breeam." Meanwhile, developers currently offer fit-out budgets of €500-650 per sqm under standard five-year leases, meaning tenants must cover substantial costs from their own funds. "The current market situation forces companies to adopt a more conscious approach to relocation planning and fit-out budgeting," concludes Słysz.
