Warsaw’s office market continued to see stable tenant activity in early 2025, even as the availability of new office space declined. According to BNP Paribas Real Estate Poland’s latest report, Review – Warsaw Office Market in Q1 2025, a slowdown in completed projects and a limited development pipeline are constraining supply. Despite these conditions, demand for centrally located offices has remained consistent, with tenants actively seeking space in the capital. Between January and March 2025, leasing activity reached 160,000 sqm, marking a 17% increase compared to the same period in 2024. In 2024 overall, tenant activity amounted to approximately 740,000 sqm, a slight decrease year-on-year. Major lease transactions in the first quarter included Enter Air’s 9,800 sqm lease in Bokserska Office Center, CD Projekt’s 5,600 sqm lease in its own office building, and Elanco Polska’s 4,400 sqm renewal in The Warsaw Hub B. Additional notable deals included a 4,200 sqm renewal in Central Tower and a 4,100 sqm new lease in Moniuszki 1a. Most leasing activity (63%) took place in central office zones, totaling around 101,000 sqm. New leases accounted for 48% of total transaction volume, followed by renewals (26%), leases for own use (17%), and expansions (9%). Pre-leases comprised 5% of all transactions in Q1 2025—slightly higher than the previous year—and reached 15% when viewed across the last four quarters. New supply, however, remains low. Only 5,600 sqm of new office space was delivered in Q1 2025, a sharp decline of 88% compared to the same period last year. In the past 12 months, just 61,600 sqm of new office stock entered the market, marking a 44% annual decrease. As of the end of March, around 267,000 sqm of space was under construction or renovation, with more than 80% located in central zones. Limited land availability in central districts continues to be a key challenge for new developments. Upcoming projects expected in late 2025 include Ghelamco’s 47,000 sqm The Bridge and Echo Investment’s 31,000 sqm Office House. Strabag’s Upper One (35,000 sqm) is scheduled for completion in Q4 2026. With new supply constrained, Warsaw’s office vacancy rate has declined to 10.5%, and just 7.4% in central locations—down 2.1 percentage points year-on-year. At the end of Q1, 657,000 sqm of office space remained vacant, with over 13% of this in buildings over a decade old. Służewiec accounted for 20% of all vacant space. Rental rates remained stable in Q1 2025. Prime offices in the city centre commanded rents of EUR 22–27 per sqm per month, while non-central areas ranged between EUR 16–18. BNP Paribas Real Estate Poland expects rents in top-tier buildings to rise in the near future due to limited supply and increasing demand for quality space.