Poland Kraków city centre remains the city’s leading office location

Kraków’s modern office stock reached 1.87 mln sqm at the end of June, up 1.9 pct year on year. Some 27,300 sqm of new space was delivered in the first half of the year – nearly 130 pct more than in the whole of 2025, but around 86 pct below the 2017 record.

All new supply was delivered in the city centre, including Fabryczna Office Park B7, with 8,400 sqm, and buildings B and C of the WITA complex, which together provide around 18,900 sqm. Soneta, an office building of around 8,700 sqm in the South-West zone, is due for completion by the end of the year.

Developers remain cautious

Developer activity remains subdued. Since 2022, an average of around 47,000 sqm of office space has been under construction each quarter, compared with more than 208,000 sqm between 2016 and 2022.

Around 37,300 sqm was under construction at the end of June, down more than 44 pct year on year. The largest project was the first phase of Tischnera Green Park, with 24,000 sqm, accounting for more than 64 pct of all space under construction.

“The significant availability of office space in existing buildings, together with occupiers consolidating and optimising their portfolios, continues to limit development activity in Kraków.”
Patryk Kowalkowski, adviser, Newmark Polska

More than 76 pct of the space currently under construction is expected to be delivered in 2027. Further projects are likely to depend largely on securing a major occupier or reaching an appropriate level of pre-leasing.

Demand rebounds

Kraków recorded more than 73,000 sqm of office take-up in the first half of 2026, down more than 57 pct year on year. The sharp decline reflects the exceptionally strong result recorded in 2025, when take-up reached a record 172,000 sqm.

After a subdued first quarter, with around 15,000 sqm leased, activity picked up sharply in the second quarter, when take-up exceeded 58,400 sqm.

Kraków remains one of Poland’s most active regional office markets, accounting for almost 24 pct of take-up outside Warsaw.

Year on year, the share of renegotiations fell from almost 72 pct to around 50 pct, while new leases increased from around 21 pct to almost 43 pct. Expansions accounted for the remaining 7 pct. No pre-lease agreements were signed during the period.

Manufacturing companies accounted for the largest share of demand, at 31.3 pct, followed by financial services at 20.2 pct, IT at 14.9 pct and business services at 8.2 pct.

Kraków remained one of Poland’s most active regional office markets in the first six months of the year.
Tomasz Chojnacki, regional director, office agency, Newmark Polska

Vacancy rises

Kraków’s vacancy rate rose to 19.0 pct in the second quarter, up 0.6 percentage points quarter on quarter and 1.7 percentage points year on year. Almost 356,000 sqm of office space was vacant.

The highest vacancy rate, at 33.3 pct, was recorded in buildings completed between 2005 and 2009. In modern buildings completed after 2020 and properties in central, well-connected locations, vacancy was around 16 pct.

The city centre had the lowest vacancy rate, at 10.5 pct. Limited availability continues to make central locations particularly attractive to occupiers.

Rents remain stable

Rents remained broadly unchanged in the first half of the year. In most modern buildings, asking rents stood at EUR 14.00–18.50 per sqm per month, while the newest and best-located projects in the city centre commanded EUR 19.00–19.50.

Outside the city centre, high availability gives occupiers more scope to negotiate flexible terms and attractive incentive packages. However, limited future supply could gradually strengthen landlords’ position in the most attractive, energy-efficient and well-connected buildings.

The limited volume of future supply could gradually strengthen the negotiating position of landlords of the most attractive, energy-efficient and well-connected buildings.
Agnieszka Giermakowska, director of market research and advisory and ESG lead, Newmark Polska