The Polish warehouse market continues to demonstrate stability, even as the rapid growth observed after the pandemic has slowed. Total warehouse stock in Poland has surpassed 35.3 million square meters, representing a 7.7% year-on-year increase. One of the most prominent trends in the sector is the accelerating development of sustainable and environmentally certified warehouse space.
A Surge in “Green” Warehouses
ESG considerations are playing an increasingly significant role in decisions made by investors, developers, and tenants. Currently, over 55% of total warehouse space in Poland holds green environmental certifications, and 1 in 5 warehouses meets the highest standards such as BREEAM Excellent or Outstanding.
“Sustainability is no longer just a trend—it’s a market standard. Green certifications not only enhance image but also lead to real operational savings and easier access to financing,” says Natalia Mika, Senior Negotiator in the Industrial and Logistics Leasing Department at Knight Frank.
This sustainable direction is especially evident in built-to-suit (BTS) projects, where 65% of space delivered in the past 12 months was environmentally certified.
Developer Activity Declining
In Q1 2025, developers completed 680,000 sqm of new warehouse space, marking a 20% decrease compared to the same period last year. An even steeper decline was observed in projects under construction, which fell 41% year-on-year to 1.4 million sqm.
“High financing costs and more cautious demand are prompting developers to take a more selective approach. The dominant strategy is ‘we build only when we have a tenant,’” adds Mika.
Currently, 60% of space under construction is pre-leased, highlighting a significant shift away from speculative development.
Strong Demand Driven by Lease Renewals
Total leasing activity in Q1 2025 reached 1.1 million sqm, up 16% year-on-year, although still below the 2024 quarterly average of 1.5 million sqm. Over 50% of leasing volume was concentrated in the three largest markets: Warsaw, Upper Silesia, and Central Poland.
The demand was mainly driven by lease renegotiations, which accounted for 56% of transactions—indicating cautious tenant behavior. New leases made up 36%, while expansions represented just 7%.
Stable Rents, Rising Vacancy Rates
The vacancy rate rose to 8.5%, up from 7.45% at the end of 2024, due to new supply outpacing net demand. Despite this, rents remain stable:
- Logistics warehouses: €3.8 to €5 per sqm
- Urban warehouses: €5 to €7.5 per sqm
“The rise in vacancies is a natural outcome of the previous investment boom. The market is moving back toward equilibrium, and stable rents indicate a mature sector,” explains Szymon Sobiecki, Market Research Analyst at Knight Frank.
Source:
CEO.com.pl – Polish Warehouse Market Holds Steady as Investment Momentum Slows
