Rising fit-out costs are reshaping tenants’ and landlords’ strategies

The Polish office market is entering a new phase: fit-out costs are rising, while move-in-ready space is becoming increasingly scarce. What prior to the pandemic cost EUR 550–600 per sqm now often requires additional tenant contributions or long-term lease commitments. Disparities between fit-out standards are widening, and developer budgets are increasingly failing to reflect the real cost of office arrangements, according to an analysis by Karolina Słysz, Head of Regional Markets, Office Agency, AXI IMMO.

Turnkey office fit-out – why ready-to-use spaces are disappearing from the market

One of the areas where changes in the office market over recent years are most evident is the cost and availability of fully fitted, turnkey office space.

Karolina Słysz, Head of Regional Markets, Office Agency, AXI IMMO, comments: “Before the pandemic, it was still possible to secure an office fully prepared for occupation—financed by the developer—within a budget of around EUR 550–600 per sqm. Pricing was calculated from the shell & core condition, meaning space delivered in a raw, developer-standard state requiring full fit-out. At that time, such a budget allowed for an average standard of finish. Today, comparable offers are increasingly rare. Tenants wishing to move into ready-made space must expect to pay a premium for this convenience. Alternatively, they may be required to sign a longer lease—often seven or even ten years instead of the standard five”.

Office fit-out – three finishing standards and their real costs

Based on the experience of AXI IMMO’s expert, the market currently operates with three clearly defined fit-out standards, which determine both cost levels and the scope of works.

Low-standard office fit-out – who it is for and typical budgets

The basic standard, most often selected by cost-focused tenants, includes only fundamental finishing materials. These typically consist of low-grade carpeting, vinyl flooring, standard modular suspended ceilings, white-painted walls, a simple open-plan layout with a minimal number of meeting rooms, and plasterboard partitions. The cost of such a fit-out amounts to approximately EUR 700–900 per sqm.

Mid-standard office fit-out – what it includes today and current costs

The mid-range standard, which only a few years ago constituted the market norm, now includes higher-grade carpets, colour accents aligned with the company’s visual identity, LED lighting, zoned air conditioning, glazed partitions, enclosed offices and relaxation areas. Simple bespoke joinery elements are also common. Greater emphasis is placed on reception areas, featuring decorative ceiling and wall elements. The cost of this type of arrangement currently stands at EUR 1,000–1,200 per sqm.

Premium office fit-out – when the highest standard makes sense

The highest standard comprises premium spaces based on bespoke designs and high-quality materials, such as stone, glass, advanced acoustic solutions and decorative ceilings—for example, timber slats. These offices often incorporate advanced lighting systems (such as DALI – Digital Addressable Lighting Interface) and top-tier technological solutions. Costs for such projects range from EUR 1,300 to 2,000 per sqm or more, depending on the complexity of the space.

What drives office fit-out costs – materials, ESG and tenant expectations

Karolina Słysz, AXI IMMO, adds: “It is worth noting that rising fit-out costs are driven not only by higher prices of materials and construction services, but also by tenants’ growing expectations regarding office space quality. Increasingly, offices must meet additional criteria—ranging from acoustics and ergonomics to ESG compliance and environmental certifications such as LEED or BREEAM. As a result, what is perceived as a mid-standard fit-out today may include solutions that just a few years ago were reserved exclusively for the premium segment.”

Office fit-out and fast relocation – challenges of adapting ready-made spaces

At the same time, pressure to shorten relocation timelines is leading companies to seek space that allows for rapid occupation, which in turn is boosting demand for offices taken over from previous tenants. However, adapting such spaces can prove costly and time-consuming, particularly when modifications to technical installations, HVAC systems or functional layouts are required.

Developer budgets for office fit-out – what they actually cover

Meanwhile, under a standard five-year lease, developers currently offer fit-out budgets of EUR 500–650 per sqm (calculated from shell & core). This means that even for a mid-standard finish, tenants must cover a substantial portion of costs from their own funds.

Adapting second-hand office space – hidden office fit-out costs

Space taken over from former tenants poses an even greater challenge. At first glance, the scope of works may appear limited—repainting walls, cleaning carpets or creating a few additional rooms. In practice, however, even minor changes frequently require interference with technical installations, which significantly increases costs and extends project timelines.

For already fitted spaces, budgets offered by developers or investment funds typically range from EUR 150–350 per sqm under a five-year lease. In many cases, this also proves insufficient, particularly when tenants expect the space to be adapted to their internal processes, working standards or corporate branding.

Office fit-out and business strategy – how to plan costs and lease terms

Karolina Słysz, AXI IMMO, concludes: “The current market situation is forcing companies to adopt a more conscious approach to relocation planning and fit-out budgeting. Differences between fit-out standards are becoming increasingly pronounced, while available budgets are ever more disproportionate to actual costs. As a result, decisions regarding space selection, lease length and the scope of arrangement works are becoming one of the key elements of every organisation’s office strategy”.

Autor

Karolina Słysz, Head of Regional Markets,
Office Agency, AXI IMMO

About AXI IMMO

AXI IMMO offers comprehensive advisory services related to commercial real estate, including warehouse and office leasing and property management, real estate valuation, land acquisition, and sales. The firm also offers B2B and B2C supply chain management services. AXI IMMO’s greatest advantage is combining international business standards with deep local market knowledge.

AXI IMMO has received numerous awards, including Best Local Agency of the Year in 2012–2019 and 2021 in the CiJ Awards and Best Team in the Warehouse Sector in 2016–2017. In 2019 and 2023, the firm was the winner in the Local Agency category, and in 2024, it was named Advisor of the Year at the CEE Investment Awards. AXI IMMO was named Local Agent of the Year in 2023 and 2024 in the CEE region at the CEEQA awards. The firm’s most recent achievement is the title of Advisor of the Year in the Prime Property Prize 2024.