Poland Tenant activity on the rise

Kraków continues to strengthen its position as the leading regional market in Poland. At the end of 2024, the total modern office stock in the city reached 1.83 mln sqm – the largest supply outside Warsaw. Despite a relatively high vacancy rate of 19 pct (around 350,000 sqm of immediately available space), Kraków currently has the highest volume of new office space under construction among all regional cities. In 2024, developers delivered over 20,000 sqm across three projects, the largest being Building C of the Brain Park complex, developed by Echo Investment. Nearly 70,000 sqm remains under construction, with the largest ongoing development, Tischnera Green Park, comprising 24,000 sqm and scheduled for completion in 2027.

Tenant activity was surprisingly strong in 2024 – gross take-up reached 270,000 sqm, marking a 33 pct year-on-year increase. This level was comparable to the record-breaking 2019 before to the pandemic. However, it is worth noting that renegotiations and lease extensions accounted for as much as 58 pct of the total leasing volume. New agreements comprised 40 pct, while only 2 pct of tenants opted for expansion.
Emilia Trofimiuk, research manager, Research Department, Axi Immo

The IT and financial sectors have long dominated Kraków's office market. In 2024, these two industries jointly accounted for nearly half of all tenant activity in the region. The largest transactions involved around 14,000–16,000 sqm, while the average lease size was approx. 1,500 sqm. Asking rents, as with most markets, depended on location and building standards, ranging from EUR 10.00 to 17.80 per sqm per month. An annual increase in rental rates was recorded in several recognisable office buildings.

Kraków has long proven itself to be one of the most mature office markets in Poland and, despite various market fluctuations, continues to attract key sectors of the economy. Companies from the IT and financial industries, which have formed the backbone of demand in this region for years, are still actively seeking flexible, well-connected locations with a high technical standard. Over the coming years, the pace of new developments may vary – many projects will be delivered with greater caution and selectivity, which in the medium term could gradually lead to a reduction in vacancy rates. While ESG remains an important element of corporate strategy, the solutions that have the greatest impact on optimising occupancy costs are currently of the highest relevance to tenants. At the same time, location, space layout, and total rental cost remain the decisive factors – these are often what ultimately determine the choice of a particular office. Demand potential, especially from technology firms and long-established shared services centres in Kraków, will remain one of the key drivers of the local office market.
Tomasz Michalczyk, head of the Office Agency, Axi Immo