Colliers Poland: Tenants ay premium rents for sustainable office buildings

Tenants are increasingly willing to pay higher rents for office spaces in modern, sustainable buildings, driven by energy efficiency and enhanced amenities, according to Colliers’ latest report, “CEE Office Markets on the Green Path – Decarbonisation Potential.” This trend is evident in capital cities across Central and Eastern Europe (CEE), where vacancy rates in certified newer office buildings are significantly lower than in older stock. In Warsaw, for example, the vacancy rate in buildings up to seven years old stands at just 5%, compared to 15% in older properties. Rental rates also reflect this demand, with averages of €17.7/sq m in Prague, €21.0/sq m in Warsaw, and €28.5/sq m in Athens.

Certified Green Buildings Dominate New Construction

The report highlights that nearly all new office buildings in Warsaw (98%) constructed in the last seven years have green certifications, demonstrating a strong commitment to sustainability by developers and tenants alike. Bucharest follows with 93% certified buildings in this age category, while Bratislava and Athens each report 80%. Conversely, Sofia (29%) and Tallinn (38%) lag in the adoption of green certification for newer office spaces.

Warsaw’s office market stands out as a regional leader, offering a total of almost 6.3 million sq m of office space across 566 buildings, with more than 450 of these certified. Even older properties in Warsaw show impressive levels of sustainability, with 90% of buildings aged 8–14 years and 70% of those over 15 years certified. According to Paweł Skałba, Senior Partner at Colliers’ Office Space Department, this commitment to green standards reflects the combined efforts of property owners and tenants to prioritize energy efficiency and align with ESG strategies.

Decarbonisation Challenges and Opportunities

The report underscores that, while green certification is becoming a standard for new office projects in cities like Warsaw and Bucharest, even relatively new buildings (2–3 years old) may require upgrades to meet stricter EU sustainability regulations. In markets with a higher proportion of older, non-certified buildings, such as Bratislava, Budapest, Riga, and Tallinn, significant investments are needed to improve energy efficiency.

In Poland, commercial real estate outside the office sector shows the greatest potential for decarbonisation, highlighting the need for greater alignment with sustainability goals in other types of properties. Monika Dmitruk, Sustainability Manager and Director of Building Advisory Services at Colliers, notes that advancing decarbonisation in older assets presents both a challenge and an opportunity for market growth.

An Investor Magnet

Warsaw’s high percentage of green-certified and energy-efficient office buildings makes it an attractive market for institutional investors. The growing demand for sustainable office spaces has not only reduced emissions but also driven higher rental values, showcasing the financial benefits of green modernization. Skałba emphasizes that Warsaw serves as a prime example of how sustainability can enhance market competitiveness and appeal to global investors.

The report analyzed office markets across key CEE cities, including Bratislava, Bucharest, Budapest, Prague, Sofia, Warsaw, Athens, Riga, Tallinn, Tirana, and Vilnius. The findings underline the importance of sustainability in shaping the future of the region’s office real estate landscape and its potential to deliver long-term value for investors and occupiers alike.

Source: Colliers Poland
Photo's: Paweł Skałba, Senior Partner at Colliers’ Office Space Department and Monika Dmitruk, Sustainability Manager and Director of Building Advisory Services at Colliers