BIP
Strong rebound in Wroclaw’s office market in Q1 of 2025
Wroclaw, Poland’s third-largest office hub after Warsaw and Krakow, recorded a sharp rise in office space demand in Q1 2025. According to CBRE, the city’s total office stock hit 1.36 million sqm, with 43,800 sqm leased in the first quarter—marking a more than 50% increase year-over-year. Two new developments scheduled for completion later this year will add another 23,600 sqm to the city’s growing office inventory.
The past quarter was dominated by lease renewals, which accounted for as much as 71% of all transactions, comments Paweł Boczar, Head of CBRE’s Wrocław office:
New leases made up nearly one-fifth of total activity. Notably, four of the renewals included tenant expansions — a positive indicator of growing demand for office space. At the same time, there were also transactions where lease renewals involved a reduction in occupied space. One in ten transactions involved the expansion of office space, which confirms that some companies are planning further growth and returning to spaces delivered during the ‘COVID years’
Pawel Boczar
At the end of the first quarter of 2025, the total stock of office space in Wroclaw reached about 1.36 million sqm. No new projects were commissioned this quarter. Two developments are scheduled for completion this year, which will deliver a total of about 23.6 thousand sqm of new space.
More offices to choose from
The vacancy rate in Wroclaw rose to 20.4 percent, up 0.9 percentage points from the previous quarter and 1.3 percentage points year-on-year. It is therefore slightly higher than the average for the six largest regional cities, which is 18 percent. This translates into about 278,300 sqm of office space available off-the-shelf.
Despite the growing interest in office space in the city, building owners still face challenges with supply outstripping demand.
Despite a noticeable improvement in tenant activity, there is still a significant amount of vacant space available in the Wrocław office market. It is worth noting, however, that sustained corporate demand confirms Wrocław's resilience as one of Poland's key regional markets. The city's strong economic foundation is conducive to its further development - emphasizes Pawel Boczar
The current market situation creates an exceptionally favorable window of opportunity for tenants to renegotiate contracts, improve lease terms and raise the standard of occupied space. This window of opportunity may continue for at least two more years.
Pawel Boczar
Diversified rents
Rents for prime Class A office space in Wroclaw have risen to EUR 16 per square meter per month, driven by growing demand for high-quality offices in central locations and high finishing and construction costs, but also by a limited supply of new buildings.
However, higher vacancy rates are leading to rent reductions in less attractive locations and in lower quality buildings.