Małopolska is rapidly expanding its industrial & logistics market, recording a 148% increase in supply over the past five years and becoming a viable alternative to Poland’s major logistics hubs. In 2024, gross take-up exceeded 180,000 sq m, while the vacancy rate remained at 3%. AXI IMMO, the region’s most frequently selected commercial real estate advisor, presents its analysis of the industrial & logistics market in Małopolska.
In just five years (2020–2024), the total industrial stock in the Małopolska Voivodeship has grown by nearly 150%, reaching approximately 1.18 million sq m by the end of 2024. This highlights how tenant activity has effectively driven new developments. New A-class players are entering the market, while existing ones, such as 7R, Panattoni and GLP, are preparing further projects, confirming their confidence in the region. In 2024, new completions included the over 56,000 sq m GLP Kraków III Logistics Centre and another MDC2 Park Kraków South phase. Today, around 10% of the region’s industrial stock is located within Kraków city limits, though growth is also evident in Skawina, Nowa Huta, Modlniczka, Targowisko, and Brzesko.
Marta Nowik, Director, Industrial & Logistics, AXI IMMO, comments: “Kraków and the entire Małopolska region are increasingly making their mark on Poland’s logistics map. Once considered as a local market, the region is now catching up with leaders and becoming a genuine alternative for companies seeking modern, well-connected logistics and manufacturing space in southern Poland. At the end of 2023, Małopolska joined the so-called ‘millionaires’ ranks, surpassing one million sq m of modern industrial and logistics space. The Kraków metropolitan area alone, driven by its internal consumption potential, requires a growing distribution base. The region’s appeal is further strengthened by its position along the strategically important east-west A4 highway and access to southern markets, including the Czech Republic, Slovakia, and Romania. From a logistics perspective, it is a strategic reloading point for both domestic and cross-border distribution. Compared to the country’s major logistics-industrial hubs, Małopolska has a significant advantage in access to a well-qualified labour force, which is especially valuable for manufacturing companies.”
Małopolska’s industrial & logistics market in 2024 exceeded expectations. Gross take-up reached over 180,000 sq m, with 104,000 sq m recorded in Q3 2024 alone. The largest transaction was a 20,000 sq m lease at City Logistics Kraków Airport II by an FMCG sector company. Other noteworthy deals include a 7,000 sq m lease by a 7R Park Kraków IV distribution firm, advised by AXI IMMO. Both international and local companies are actively expanding in Kraków.
The region stands out for its exceptionally low vacancy rate – just 3.0% at the end of Q4 2024, significantly below the national average of 7.5%. The limited availability of ready-to-lease space may drive increased speculative development activity in the coming quarters. Regarding rental rates, the region is one of the most expensive in Poland – only Warsaw commands higher rents. As of the end of 2024, base rents ranged between EUR 4.60 and EUR 6.50 per sq m per month.
Marta Nowik explains: “Despite the relatively low vacancy rate, we recently observed a slight decrease in effective rents in selected micro-locations due to a temporary increase in space availability. The incentives may vary depending on the competitive situation in a given location, so we continuously analyse and report on local market conditions for our clients.”
Further development projects are planned in the region: “Over the past six months, the land bank for new developments has expanded significantly, including in urban locations and areas already equipped with infrastructure for manufacturing businesses. This is an ideal moment to consider locating production facilities in the heart of the Kraków metropolitan area, taking advantage of the well-trained engineering talent from Kraków’s technical universities,” the expert continues.
Based on its historical growth, Małopolska’s warehouse market has solid foundations for further expansion. Low vacancy rates, increasing tenant interest, and consistent developer activity suggest the region has yet to reach its full potential. The limited availability of ready-to-lease space supports the case for speculative development. At the same time, its strategic location and robust infrastructure make Małopolska an attractive destination for new projects – reinforcing the strong growth potential of this market.
