3 markets with more than one million square meters, Krakow still leader

Krakow maintains its position as regional leader with a total supply of modern office space of 1.82 million sqm. Wrocław and the Tri-City also exceed the 1 million sq. m. threshold, with inventories of 1.37 million sq. m. and 1.07 million sq. m., respectively. These cities are also where most of the activity from tenants is concentrated.

“Krakow, Wroclaw and the Tri-City attract the largest number of companies, offering access to skilled workers, extensive infrastructure and attractive lease terms.” –

says Daniel Czarnecki, Head of Landlord Representation, Office Agency, Savills Poland.

The largest volume of new space expanded resources in Wroclaw (32,300 sqm), the Tri-City (19,500 sqm) and Krakow (14,400 sqm). The list of the largest completed projects included: Quorum Office Park A (Wroclaw, 18,200 sqm), Waterfront phase II (Tri-City, two buildings with a total area of 14,500 sqm), B10 (Wroclaw, 14,100 sqm) and Brain Park C (Krakow, 13,000 sqm). Significantly, as much as 50% of the space delivered this year is still waiting for its tenants.

Few pre-leases, few construction sites

At the end of September, 214,400 sq. m. of modern space was under construction in the regions. The largest number of offices is climbing in Poznan (55,400 sqm), followed by Katowice (46,200 sqm), Wroclaw (41,600 sqm) and Krakow (37,100 sqm).

“The very low level of pre-leasing agreements is having an impact on the prolonged commercialization process of projects under construction, which, combined with financing difficulties, has forced some developers to put on hold the projects they have started. Currently, the status of ‘on hold’ applies to about 107,400 sqm, and they are awaiting the signing of a pre-leasing agreement or securing financing in a new form to resume.” –

says Daniel Czarnecki, Head of Landlord Representation, Office Agency, Savills Poland.

The report’s authors estimate that in the most optimistic scenario, a total of 382,000 sq. m. of office space is planned to be delivered in regional cities between 2025 and 2026, of which about 141,000 is already under construction.

Demand down. Renegotiations dominate, IT sector with contracts

During the period under review, tenants leased a total of about 509,300 sqm of office space, representing a 4% year-on-year decline in demand. Most offices were leased in Krakow (178,500 sqm, up 47% y/y), Wroclaw (95,800 sqm, down 21% y/y) and the Tri-City (92,800 sqm, down 27% y/y). In addition, demand in Poznań totaled 53,500 sqm, in Łódź 45,100 sqm, and in Katowice almost 35,000 sqm. In Lublin and Szczecin, leasing activity totaled less than 9,000 sqm.

In Q3 2024, lease renegotiations accounted for 53% of all transactions, compared to 35% in the same period of 2023. Tenants from the IT sector remain the most active, generating 26% of total demand. In Krakow, as many as 35% of new contracts were signed by tenants from this sector.

“Technology companies are looking for modern and flexible spaces that support a hybrid work model and allow teams to scale freely,” he added.

comments Jaroslaw Pilch, Head of Tenant Representation, Office Agency, Savills Poland.

Stable vacancies and rents

The Savills report indicates that vacancy rates vary by city. At the end of September, the lowest level was recorded in Szczecin (6.8%) and the highest in Lodz (21.1%). In Katowice (20.5%), Wroclaw (19.7%) and Krakow (18.9%), the vacancy rate remains around 20%. In the Tri-City, Poznań and Lublin it did not exceed 13%. The average vacancy rate at the end of Q3 was 17.3%, registering a minor upward adjustment of 3 bps compared to 2023.

Net absorption of space from Q1 to Q3 amounted to 79,800 sqm, an increase of 7% compared to 2023. Only in two cities – Lublin and Szczecin – the indicator was negative and amounted to -1400 sqm and -2100 sqm, respectively. The highest positive values were recorded in Krakow (26,800 sqm), the Tri-City (23,600 sqm) and Poznań (14,600 sqm).

“At the end of Q3, base rents in A-class buildings in regional cities averaged between EUR 12.00 and EUR 17.00/sq.m./month. The highest rates were registered in Poznan (17.00 EUR/sq.m./month), Krakow and Wroclaw (up to 16.50 EUR). In Szczecin, rents reached 15.50 EUR, while in the Tri-City, Katowice and Łódź they recorded slightly lower values (15.00 EUR).” –

Jaroslaw Pilch says.

Among the 8 key markets, the cheapest offices were in Lublin, where you had to pay up to EUR 14.25 per square meter in prime locations. In addition to rents, tenants have to reckon with service charges, which can reach PLN 36.00 per square meter/month.

Challenges and market outlook

The low level of new pre-leases (less than 10% in most regional cities) and difficulties in raising financing are affecting delays in some office projects. However, the stable vacancy rate and growing activity of IT tenants give reasons for cautious optimism.

„We expect the office market in the regions to gradually adapt to new realities. It will be key to offer workspaces that meet the needs of companies that use a hybrid work model and provide flexible lease terms ” –

Daniel Czarnecki concludes.

Download the report here: https://pdf.euro.savills.co.uk/poland/offices-and-warehouses/savills-mim-office-regions-q3-2024.pdf