Real Estate

Polish real estate law

Poland is perceived as a recognized and stable commercial real estate market, year by year approaching mature market status. The commercial real estate market in Poland has been breaking new records for the leased space for many years, especially in the office, warehouse and investment sectors. In Warsaw alone, the total stock of office space at the end of the first quarter of 2019 was 5.48 million m2, and the capital will soon be at the forefront of capitals with the highest number of high-rise buildings in Europe. Analyzes agree that the market will maintain its dynamics due to the expected GDP growth, and investing in real estate in Poland, especially in commercial premises, will be gaining in popularity. In large cities, unflagging demand for commercial and service space is visible. For landlords, the undoubted advantage of investing in commercial real estate in Poland is above all the possibility of concluding long-term lease agreements and, as a consequence, the return of capital.

As a landlord, to succeed, however, you need to protect your investment and your business as carefully as possible, primarily by ensuring that the tenant regularly pays rent. However, the rental relationship is so complex that receiving rent as a landlord is just one part of your success. In a well-structured lease agreement, you should also refer to other issues that are to effectively protect your interest, such as: the possibility of terminating the lease relationship, ensuring the tenant’s participation in the cost of finishing the rented premises, claiming compensation for the tenant’s termination of the lease agreement, the possibility to impose contractual penalties on the tenant, who e.g. makes it difficult for other tenants to run business in the property or violates the building regulations. However, the above issues are just a few examples, which is why a well-structured tenancy agreement in Poland is often a thick document. Also remember that in a competitive commercial real estate market, there are ways to encourage a tenant to conclude a contract, for example, by temporarily exempting from rent, covering interior design costs or assuming tenant’s obligations under a previous lease agreement.

On the other hand, as a tenant in Poland who wants to rent an office or commercial space, you will receive a model lease agreement prepared by the landlord’s lawyers. Remember – the landlord’s lawyers only care about their client’s interests, never yours. The contract will contain numerous bans, requirements, contractual penalties, rights to terminate the contract by the landlord and additional obligations imposed on you. The landlord will also want to establish the highest possible payment security, which from the first day may worsen your financial situation. As a tenant, you will probably focus on financial issues regarding the lease relationship, but remember that really risky provisions may be in completely different places in the contract, e.g. in the paragraph regarding the possibility of terminating the lease in an immediate fish. Remember, however, that it is in the interest of the landlord to conclude the contract, and therefore every lease agreement in Poland should be negotiated. Our experience shows that the content of the contract proposed by the landlord and the content of the contract after negotiations will be radically different.

Regardless of whether you are an entrepreneur renting commercial space or a tenant who needs to have an office or commercial space to develop your business, negotiating, concluding and then enforcing the lease agreement can equal to the success or failure of your business. As specialists in the field of commercial lease in Poland, we will help you in every aspect related to the lease of premises, so that you can safely focus on doing business, and leave legal matters only to us. Remember that we will also represent you if the contractor does not comply with the terms of the contract, terminates the contract or being the lessor – you will want to use payment security.

And if you plan to buy real estate for rent in Poland? On your behalf, we will perform a thorough analysis of the legal status of real estate, aimed at identifying and assessing the legal risk associated with the investment. We will also show ways to minimize or eliminate risks. Based on the legal examination, we will be able to present legal arguments that can help negotiate the price.