Mixed-use to dominate Polish office market in 2026

The 2026 Polish office market will be characterised by "strategic pragmatism" in investments, driven by a deeper scrutiny of qualitative and financial factors. 

Mateusz Strzelecki

New office supply in Poland is at a multi-year low due to high financing and construction costs, alongside increasingly strict ESG requirements, according to Mateusz Strzelecki, partner/head of Tenant Representation at Walter Herz.
Developers are now hesitant to embark on purely office projects unless they are mixed-use, leading to fewer office-only options in prime locations and longer waiting times for tenants. Only well-planned, mixed-use developments in top locations with credible commercialisation strategies will come to market. While a shortage of high-quality office space, especially in Warsaw, might eventually stimulate developer activity, it will be a gradual process.
Many older office buildings are being converted to residential use rather than refurbished or replaced with new offices, as residential projects offer better yields and a more favourable risk profile. Refurbishing outdated, energy-intensive office buildings is often uneconomical, as the investment does not always translate into higher rents or demand. This pragmatic approach means "greenwashing" no longer works, and an honest assessment of an asset's best use is paramount.
As a result, office stock in major cities, particularly Warsaw, is shrinking. Only redevelopment projects with clear business cases—demonstrating tangible benefits such as lower operating costs and stable rental income—will succeed, giving mixed-use and "strong-product" investments a competitive edge in 2026.
Tenant demand is highest for modern offices in prime locations with stable or slightly growing rents, while availability in other segments is declining. Even medium-sized office units, particularly in Warsaw, are becoming hard to secure, forcing tenants to start their leasing process 12–18 months in advance. Companies are increasingly balancing the desire for top-tier locations with the need for functional, affordable refurbished spaces, seeking a business compromise over a 5–7 year lease term. Lease negotiations are now more comprehensive, covering fit-out budgets, turnkey works, rent schedules, and spatial flexibility (the ability to adjust the occupied area).
Flexible leasing models are becoming standard, supporting both return-to-office trends and distributed work. Poland's flex office market, currently around 4% of total stock in Warsaw and Krakow (compared to 20% in Western Europe), shows significant growth potential. Flex spaces are ideal for market entry, project work, and daily team operations.
In 2026, many organisations will combine different office models while increasing pressure for employees to return to the office, recognising its importance for relationships, culture, and collaboration. Offices that support interaction, with good acoustics, lighting, and amenities, will be highly valued. Tenants who adopt shorter decision-making horizons, choose flexible lease structures, and can quickly adapt to market changes will gain a competitive advantage in 2026.