Poland's office real estate market is changing dynamically. While economic growth remains relatively stable, transformation in work models, rising costs, and changing tenant expectations create new challenges. For companies seeking office space, understanding key risk factors is essential for making informed relocation and contract negotiation decisions.
As tenant advisors, we monitor these trends to support our clients in choosing the best solutions. Below is an analysis of 5 main risks in the 2025 office market, from the perspective of Poland's largest cities, particularly the Krakow market.
Risk Map of the Office Market
1. Hybrid Work-Critical Risk
Hybrid work is no longer a trend but a new market standard. This fundamentally changes how companies approach office space. Instead of completely reducing offices, tenants are reducing leased area while raising its quality.
The effect is twofold: tenants increasingly ask "is it worth moving?" and if they decide to relocate, they demand more productive space. This creates pressure on older Class B and C buildings-the so-called "flight to quality." Companies earning below average may find themselves in difficulty if their current office doesn't offer flexibility and modern amenities.
2. Fit-Out Costs-High Risk
Rising building materials and labor costs significantly slow company relocations. Before deciding the move makes sense, tenants must consider not just new rent but also significant capital expenditure on designing new space.
According to market data, the percentage of contract renegotiations in Poland exceeds 60%. For many companies, the decision to move has become more complicated-they must carefully calculate whether rent savings offset high fit-out costs. Tenant advisors should take this into account when negotiating terms, especially regarding free fit-out periods.
3. Supply Gap in 2026-Medium Risk
Poland has limited new office projects in its pipeline for 2026. This supply gap creates pressure for higher rents in top locations and reduces availability of large Class A modules.
The mismatch between demand and supply is evident every quarter. For companies seeking first-class space in prestigious locations (e.g., Warsaw City Center or Krakow South), building owners' and managers' negotiating position strengthens. Recommendation for tenants: plan relocation with sufficient advance notice.
4. ESG Requirements-High Risk
Building certification under ESG standards (Environmental, Social, Governance) is ceasing to be an addition-it's becoming necessary. For international corporations, especially those in regulated sectors, it's a strategic requirement.
Buildings without upgrades and appropriate certifications (BREEAM, LEED, WELL) may lose out in competition for best tenants. Additionally, rising EU regulatory requirements mean space without adequate energy efficiency levels will be less attractive and more expensive to maintain.
5. Macroeconomics-Relatively Low Risk
Despite geopolitical uncertainty, fundamentals of Poland's office market remain relatively stable. Greater risk for tenants is not economic conditions but structural change in work models and ESG requirements.
This means office space decisions should be made based on long-term company strategy, not short-term economic fluctuations.
Summary: What to Do?
For tenants considering location changes or negotiating new contracts:
- Assess your actual needs -Is change necessary given your new work model?
- Calculate long-term -Consider rent, fit-out, energy efficiency and potential cost increases.
- Check certifications -Buildings should have or be planning ESG certifications to be future-proof.
- Negotiate terms -Use current market conditions to discuss improvements, free periods and technical enhancements.
- Plan ahead -Supply gap means good locations will be taken quickly.
Brookfield Partners, as a tenant advisor, helps companies make conscious decisions based on reliable market analysis and genuine business needs.