Poland Metro increases office rents

Even office buildings over 10 years old generate a quarter more in rents than a modern building without rail access. An office building with metro access can increase rents by up to 39 pct, and one with rail access by 18 pct, compared to buildings located more than a 10-minute walk from the station.

For years, the metro has been synonymous with the city's accessibility and significantly shortened travel times between districts. Colliers' latest analysis shows that this is also a factor that permanently strengthens assets' market position. This is particularly evident in central locations, where, as the report indicates, access to public transport is one of the most important factors in driving rental values.

Proximity to suburban and city line railways also enhances the attractiveness of office buildings, although to a lesser extent than the metro. The analysis shows that buildings near the railway achieve 18 pct higher asking rents than buildings located more than a 10-minute walk from the station.

The Metro: More important than age

One of the most surprising findings from the report is the impact the metro has on the value and perception of office buildings. Colliers points out that access to the metro can compensate for the natural aging of buildings and, in some cases, even reverse the typical price ratio between new and older buildings.

A building more than 10 years old, but located within a 10-minute walk of the metro, achieves up to 25 pct higher asking rents. Higher asking rents than new buildings (delivered after 2016) located outside a 10-minute transit radius. This means that location is becoming a key element in building a market advantage.

For property owners, proximity to the metro has become the most effective insurance policy, protecting the value of assets over time. For older assets, this also means that modernizing a building located near the metro has significant investment potential, as the attractive location already protects the property's value.
Izabela Kapil, head of office agency – landlord representation, Colliers

Rail transport stabilises leases

A Colliers report indicates that rail transport increases rents, reduces vacancy rates, and stabilises landlord income. Buildings located within a 10-minute walk of a metro or rail station have an average vacancy rate of 8.6 pct, while for buildings located further from rapid transit, the vacancy rate rises to 10.8 pct. This is a 2.2 percentage point difference, which in the commercial real estate segment can determine the profitability of the investment, lease liquidity, and pace of commercialisation.

From the perspective of tenants, an office near the metro is not only prestigious but, above all, a powerful recruitment tool – buildings within reach of the underground railway have the lowest vacancy rate on the market (6.9 pct). For companies seeking savings without sacrificing excellent transport links, we recommend older buildings near metro stations. Tenants, on the other hand, prioritising budget optimisation, should look at non-central locations. There, the impact of rail transport on rents is minimal, allowing for flexible price negotiations and obtaining attractive incentive packages, such as rent holidays, fit-out budgets, or lower effective rates.
Paweł Skałba, senior partner, director of the office agency – tenant representation, Colliers

Where are the most modern offices being built?

Colliers data indicates that as many as 62 pct of existing office buildings in Warsaw are within reach of rail transport. This trend is intensifying in buildings less than 10 years old – over 70 pct of new supply was built in the immediate vicinity of a metro or train station.

Moreover, according to the report, nearly 90 pct of office space under construction is being built within a "10-minute reach" of the metro. The market itself is forcing this trend: investments in locations without metro access face a significantly more difficult commercialisation path and poorer prospects for value growth.

Most Desirable Addresses

Although the Warsaw city centre is naturally very well connected, the Colliers report shows that individual locations vary in potential and development density. The largest concentrations of modern office space within a 10-minute walk – are located around Rondo Daszyńskiego and Rondo ONZ, with each location comprising more than 1 mln sqm. The historic centre of the city offers less office space – Świętokrzyska (642,000 sqm) and Centrum (587,000 sqm) stations. Interestingly, Warsaw's largest railway station – Warszawa Centralna – has 677,000 sqm of office space, which is almost half the volume of development around Rondo Daszyńskiego.

M2 Metro changes Warsaw's office Map

The Colliers report also highlights the differences between the two metro lines. The M2 line exceeds the M1 in terms of surrounding development density, which is due to its route through rapidly urbanising districts, including Wola, Praga-Północ, and Praga-Południe. A significant portion of modern office development is being built along this route – on both sides of the Vistula River.

The M2 line has become a true driving force behind the transformation of Warsaw's office market. Its route through the dynamically developing districts of Wola, Praga-Północ, and Praga-Południe has translated into efficient development. These parts of the city have undergone significant change in recent years, attracting investments that were unimaginable just a decade ago. Rondo Daszyńskiego – until recently a post-industrial area on the outskirts of the city centre – now houses the largest volume of modern office space in Warsaw. This is the best proof that proximity to the metro not only reflects the value of a location – it actively creates it.
Olga Drela, associate director, market insights, Colliers

The impact of proximity to rail transport, particularly the metro, is also visible in rent levels. The highest asking rents (prime rents) are observed in the city centre, particularly near metro and railway stations – in the Warsaw Śródmieście area, they reach as much as EUR 32 per sqm for selected units. However, rents do not decline linearly with distance from the city centre. Rent levels are also influenced by the building's age, competitive rents in neighbouring buildings, and technical standards. The lowest asking rents, at approximately EUR 13 sqm, were recorded near the Warszawa Wola railway station and the Natolin metro station.

The report shows that in non-central areas, the impact of transportation on rents is much weaker, with the rent premium being only 1.5 pct. This means that tenants considering offices in these locations can negotiate more aggressively, while landlords must prioritise other factors: more parking spaces, easy car access, attractive pricing, or extensive incentive packages.