The latest report, *”At A Glance – Industrial and Logistics Real Estate Market in Poland,”* published by BNP Paribas Real Estate Poland, highlights the continued robust growth of this sector in Q2 2024. The increase in tenant activity and stable levels of new investments place Poland among the top European warehouse markets.
Revival Among Tenants and Developers
In Q2 2024, a record 1.76 million square meters of industrial and logistics space was leased in Poland, making it one of the best-performing markets in Europe during this period. Impressively, 56% of the total transaction volume involved large deals, ranging from 20,000 to 130,000 square meters. Notably, new contracts and expansions made up 60% of all transactions. The first half of 2024 saw a gross demand of nearly 2.7 million square meters, reflecting a 23% increase compared to the same period last year.
The largest transaction of the quarter was LPP leasing 103,000 square meters at the Bydgoszcz Białe Błota Logistics Centre. Additionally, a confidential tenant signed a 91,000 square meter deal at Panattoni Park Wrocław Logistics South Hub, while LX Pantos renewed its lease of 72,000 square meters at Prime Logistics Wrocław.
Developers also showed significant momentum.
– “Developers delivered 1.64 million square meters of space from January to June, with a similar volume planned for completion in the second half of the year,” says Martyna Kajka, Director of the Industrial and Logistics Department at BNP Paribas Real Estate Poland. “By the end of June 2024, Poland’s total warehouse space reached 33.52 million square meters, representing a 9% year-on-year growth. With the current construction volume, the market is set to surpass the 35 million square meter threshold soon.”
By the end of Q2 2024, over 1.98 million square meters of modern industrial and logistics space were under construction, with the largest projects concentrated in Lower Silesia, including P3 Wrocław Building 1 and 3, and ECE Kąty Wrocławskie.
Warehouse Space in Kraków Surpasses 1 Million Square Meters
At the end of Q2 2024, Kraków’s industrial and logistics space exceeded 1 million square meters, making it one of Poland’s ten warehouse zones of this scale. Despite its rapid growth, the Kraków market faces challenges, including limited land availability and strong competition from Upper Silesia.
Over the past five years, the warehouse space in Kraków has doubled, with the region maintaining one of the lowest vacancy rates in Poland, at 6.4% compared to the national average of 8.3%. In 2023, 232,000 square meters were leased in the Małopolska region, a 4% increase from the previous year. However, only 43,000 square meters were leased in the first half of 2024 due to limited available space.
The development of the market is supported by good transportation infrastructure, available investment land, and a skilled workforce. The completion of the S7 road will further enhance the potential of the northern areas of the region.
Vacancy Rates and Transaction Structure
At the end of Q2 2024, the vacancy rate stood at 8.3%, a 0.1 percentage point increase from the previous quarter and a 1.5 percentage point increase compared to the same period in 2023. The highest vacancy rates were recorded in the West (21.8%), Warsaw I (12.3%), and Central Poland (10.8%) zones, while the lowest were in Opole (2.6%), Szczecin (4.0%), and East (5.2%).
In terms of transaction structure, new leases accounted for 54% of the total volume of leased warehouse space in Q2 2024, while renegotiations made up 39%, and expansions accounted for 7%. The most active zones were Lower Silesia (gross demand of 450,000 square meters), Warsaw II (268,000 square meters), and Upper Silesia (250,000 square meters).
Changes in the Industrial and Logistics Space Market
For a long time, Poland’s warehouse market was viewed primarily as a space for large, simple halls for e-commerce, retail, and logistics companies. Today, the sector is much more diverse.
– “We are seeing demand for both large and smaller A-class spaces tailored to tenants’ needs,” says Robert Pawłowski, Director of the Industrial and Logistics Department at BNP Paribas Real Estate Poland. “The concept of industrial and logistics parks offering a variety of module sizes, as well as production-standard spaces, is proving successful. Both developers and tenants are increasingly recognizing the benefits of modern, environmentally-friendly concepts that ensure energy security for tenants.”
The Future of Poland’s Warehouse Market
The Polish industrial and logistics sector continues to grow, as evidenced by recent investments. Notable examples include Notino, which is opening its first warehouse in Poland—a modern facility in Głuchów serving both Polish and international orders. Additionally, Amazon has announced multi-billion-dollar projects and thousands of jobs across Europe, including wind energy investments in Poland. Furthermore, the construction of the largest City Logistics warehouse in Poland has been completed—City Logistics Poznań III, covering nearly 44,000 square meters, is the largest facility of its kind for last-mile services.
With continued development, Poland’s industrial and logistics market is well-positioned for further expansion and modernization.
Source: [ceo.com.pl](https://ceo.com.pl/rynek-powierzchni-przemyslowo-logistycznych-w-polsce-w-ii-kwartale-2024-r-46054)
