Poland Retrofitting costs come into focus

Poland’s office market is relatively young compared with Western Europe, but much of the stock is no longer new. According to PINK, the country had around 13 million sqm of modern office space at the end of Q2 2026. Some buildings are already more than a decade old, while offices dating from the 1970s and 1980s are still in use.

That means retrofit will become relevant to more of the market. Forecasts cited in the report suggest that most existing office buildings will still be in use in 2050. At the same time, EU rules call for the energy performance of buildings to improve gradually.

For owners, that means considering future regulations alongside running costs, tenant expectations, lenders’ requirements and the need to maintain property values.

Retrofit is therefore becoming a business decision, not just a technical one.

How much does retrofit cost?

Retrofit can range from relatively simple measures, such as improving energy management and adjusting building systems, to major work on the façade, technical systems and common areas. The right approach depends on the building’s age, condition and specifications, as well as the owner’s goals.

One of the challenges is knowing what the work will cost. The report Modernizacje biurowców. Retrofit / CAPEX, prepared by Gleeds Polska at the initiative of PINK, uses two model buildings to show how costs can vary.

Valuers and lenders have raised the difficulty of estimating retrofit costs in many discussions, including PINK expert group meetings. The data in the report can also give owners and managers a useful starting point. Based on real project data, it is the first detailed overview of retrofit costs for the Polish market.
Ewa Andrzejewska, chief operating officer and board member, Polish Council of Commercial Real Estate

The report also looks beyond the cost per square metre, taking into account how the building is expected to be used and what the owner wants to achieve.

Three options for a 2006 office building

The first example is a 2006 office building with 14,200 sqm of GLA, outside the centre of Warsaw or one of Poland’s largest regional cities.

The cheapest of the three options includes an audit, metering, system adjustments, building controls and lighting. The estimated cost is PLN 5.26 million net, or around PLN 370 per sqm of GLA.

The work could cut energy use by 10–15% and potentially improve the building’s energy rating from E to D.

The second option adds ventilation improvements, heat recovery and cooling upgrades. The cost rises to PLN 15.32 million net, with estimated energy savings of 25–35%.

The third includes partial façade upgrades, work on the lobby and improvements to common areas. The estimated cost is PLN 21.22 million net, with potential energy savings of 40%. The authors estimate that this could improve the building’s rating from E to C.

The examples show that costs rise quickly as the scope of work expands, but so does the potential energy saving.

An older building, a different approach

The second example is a 1978 office building in a regional city, with 3,900 sqm of GLA.

The basic thermal upgrade includes a building survey, metering, system adjustments and roof insulation. The estimated cost is PLN 1.84 million net. The work could cut energy use by 25–35% and potentially improve the building’s rating from E to D.

The deep retrofit option adds wall insulation, replacement windows and doors, heating upgrades and ventilation improvements in selected areas. The estimated cost rises to PLN 6.05 million net, with energy savings of around 50%. The potential result is an improvement from E to C.

The examples also show that retrofit costs do not simply depend on the age of a building. The final budget depends on its condition, specifications and what the owner wants to achieve.

Energy ratings as a benchmark

The report uses the building’s energy rating as one way to measure the impact of a retrofit. It provides a straightforward comparison between a building before and after the work and is also used in property financing and refinancing.

Its importance could grow as European regulations take effect. Under the EPBD, 16% of the worst-performing non-residential and public buildings are to be renovated by 2030, followed by a further 26% of the least energy-efficient buildings by 2033.

The directive has not yet been fully transposed into Polish law, so the final national rules for meeting these targets are still to be determined.

For owners, this means making retrofit plans while the regulatory picture is still changing.

A decision about the future of the asset

Energy savings are only part of the equation. Owners may also be looking at operating costs, tenant retention, attracting new occupiers, competing with newer buildings and protecting the value of the property.

The right scope of work will depend on what the owner plans to do with the building. A property expected to remain in use for another 10, 20 or 30 years may call for a different investment from one where the owner is considering a change of strategy.

I hope Modernizacje biurowców. Retrofit / CAPEX, the first Polish publication focused specifically on office building modernisation and retrofit, will become a benchmark for the market. It should be useful both to people new to the subject and to experienced professionals.
Andrzej Kozak MRICS, deputy managing director, Gleeds Polska

The figures in the report are not full project budgets. They exclude financing costs, rental voids and work that may only become necessary once construction begins.

Actual costs will depend on the individual building and the scope of the work. The report does, however, give an indication of the investment required for different levels of retrofit and the energy savings they could deliver.

For owners of older offices, the question is increasingly not just how much a retrofit will cost, but what it will mean for the future of the property.