PL

Poland Good prospects ahead

Warehouse & industrial
According to the latest report “Industrial and Warehouse Market in Poland”, released by Newmark Polska, 2023 was one of the best years in the market’s history. It saw the second highest new supply (3.7 mln sqm) and the third highest take-up (5.6 mln sqm) and development pipeline (2.8 mln sqm). Considerable warehouse availability levels brought a long-awaited stabilization of rental rates.

At the end of 2023, Poland’s total warehouse and industrial stock stood at over 31.7 mln sqm, an increase of 12 pct year-on-year.

Despite a slight slowdown in the early months of 2023, the Polish warehouse and industrial market returned to a trajectory of steady growth. Considering development and leasing activity in the last quarter, both developers and tenants are looking to the future with more confidence. Poland remains a major beneficiary of global supply chain reconfiguration acting as a positive driver of its warehouse and industrial market. Its average annual growth is expected to slow marginally to around 10 pct in the next few years. This suggests that Poland’s total stock will surpass the 35 mln sqm mark in early 2025 rather than by the end of this year.
Jakub Kurek, head of Industrial and Warehouse, Newmark Polska

Both developer and occupier activity will continue to focus on Poland’s six key warehouse markets: Warsaw and its suburbs, Upper Silesia, Central Poland, Lower Silesia, Greater Poland and Tricity. Taken together, they contain 80 pct (more than 25 mln sqm) of modern warehouse and industrial space in Poland.

Supply and warehouse space under construction

More than 3.7 mln sqm came onto the Polish market in the whole of 2023, a decrease of 16 pct compared with the previous year. The most active development regions were Mazovia, Upper Silesia and Lubuskie, which saw 702,500 sqm, 599,100 sqm and 437,300 sqm built respectively.

At the end of December 2023, there was more than 2.8 mln sqm under construction, up by 12.9 pct compared with Q3 2023 but down by over 17.6 pct year-on-year. The largest volumes of new developments were underway in Lower Silesia (829,000 sqm), Mazovia (478,900 sqm), Central Poland (402,950 sqm) and Pomerania (288,300 sqm). Although developers have secured land banks and are planning to deliver projects across Poland, construction activity continues to focus on the six key warehouse markets, which had more than 2.5 mln sqm underway at the end of last year, accounting for nearly 90 pct of the country’s total development pipeline.

Tenant activity on the warehouse and industrial market in Poland

More than 5.6 mln sqm of warehouse and industrial space (excluding short-term leases) was transacted throughout Poland in 2023, a year-on-year decrease of 16.1 pct. The provinces with the highest leasing activity were Mazovia, Lower Silesia and Upper Silesia, which accounted for 25.6 pct, 17.9 pct and 16.2 pct of the total take-up respectively. Occupier activity focused on the six key warehouse markets, which accounted for nearly 87 pct of 2023’s total leasing volume.

The structure of demand for the whole of 2023 was dominated by new leases, including contracts to deliver BTS projects, which accounted for 50.4 pct of all deals. Renewals also had a large share of last year’s take-up at 40.2 pct. Expansions made up the remaining 9.4 pct. It is also worth noting that nearly 244,000 sqm was transacted in 2023 under shorter leases of up to one year.

The largest letting of 2023 was an e-commerce company’s deal for more than 265,000 sqm in three buildings under construction within the P3 Wrocław industrial park. Two other major transactions were for BTS projects with an area of upwards of 100,000 sqm each – they saw Inditex lease 120,000 sqm in DL Invest Park Psary and Raben take 110,000 sqm in CTPark Warsaw West.

Warehouses to lease

According to the experts of Newmark Polska, at the end of last year, vacant stock comprised more than 2.3 mln sqm in existing buildings and nearly 1.4 mln sqm in the pipeline.

At the end of Q4 2023, Poland’s overall vacancy rate stood at 7.4 pct, up by 3.3 pp year-on-year. The highest vacancy rates were in Świętokrzyskie (18.4 pct), Lubuskie (14.2 pct) and Łódzkie (10.2 pct), with the lowest being in Subcarpathia (1.7 pct), Pomerania (1.7 pct) and Lesser Poland (2.2 pct).

Rents

Prime warehouse and industrial rates stabilized in the end of 2023. In some locations experiencing relatively high vacancy rates, rents edged down, and tenants were able to negotiate more attractive lease incentives. The highest rental rates were in Warsaw (zone 1).

Investment market

In 2023, Poland’s total commercial property investment volume surpassed EUR 2.1 bln, the lowest figure since 2010. The industrial sector, on which investors have heavily focused for years, accounted for almost half of this total, with nearly EUR 1 bln of 27 transactions. This represents a decrease of over 50 pct from 2022, which saw EUR 1.95 bln worth of deals transacted in this market segment. Real estate yields continued to move out throughout 2023.

Last year’s two largest transactions were for more than EUR 100 mln each - these were NREP’s acquisition of an 80 pct stake in property developer 7R and the acquisition of Panattoni Campus 39 in Wrocław by P3 Logistic Parks.

2023 was a year of many challenges and high uncertainty on commercial real estate investment markets in Poland and across Europe. Elevated financing costs and the ongoing war in Ukraine caused a slowdown in investor activity and a significant fall in real estate trading volumes compared with previous years. Nevertheless, according to forecasts for 2024-2025, the global economy is expected to see an improvement in the macroeconomic situation and more stability. Of all the commercial real estate sectors, industrial and logistics assets, especially eco-certified buildings that meet high standards for emissions, decarbonization and energy performance, will continue to attract the strongest investor interest in the coming months.
Urszula Sobczyk, head of Valuation, Newmark Polska

Market trends

The warehouse and industrial market in Poland has reached a state of equilibrium, with developers and tenants remaining optimistic on its future growth prospects.

ESG aspects will have a significant impact on the property market this year, affecting all the market participants: from landlords and investors through to banks, insurers and tenants – both locally and globally. Going forward, challenges facing it include shrinking labour pools and energy security issues regulations.
Agnieszka Giermakowska, Research & Advisory director, ESG Lead, Newmark Polska

Latest news

Warehouse & industrial

Romania Cargus opens its new hub in Sibiu

schedule 17 May 2024
Opr./edited by ANZ

CTP expands its partnership with Cargus, a courier company in Romania, with the inauguration of a new location in Sibiu.

Material partner

Poland Excellent Fern at Off Piotrkowska

schedule 04 April 2024
Eurobuild CEE

Intensive commercialization of the multifunctional Fern building under construction at Off Piotrkowska Center has begun. A modern building, the construction of which will start at the turn of 2024/2025, offers 4,700 sqm of service space and 2,700 sqm of office space.

Office & mixed-use development

Poland UBC II will be modern again

schedule 17 May 2024
Opr./edited by ANZ

Atenor, the Belgian developer responsible for the Lakeside development in Warsaw's Mokotów district, intends to renovate the neighbouring UBC II building. The project received planning permission in March this year.

Office & mixed-use development

Poland Axi Immo stays in the tower

schedule 16 May 2024
Opr./edited by ANZ

Axi Immo has decided to extend its existing lease and add new space for its growing business lines in Warsaw's Spektrum Tower office building.

Warehouse & industrial

Romania VGP Park Bucharest North will grow

schedule 16 May 2024
Opr./edited by ANZ

VGP, a European provider of logistics spaces and semi-industrial real estate, has initiated the construction of the third building in VGP Park Bucharest North (A3). Building A covers an area of almost 26,000 sqm and has already two tenants, who have signed lease contracts for a total of more than 8,000 sqm.

Investment & finance

Poland Cromwell sells Polish retail portfolio

schedule 16 May 2024
Opr./edited by ANZ

Real estate investor and fund manager Cromwell Property Group has announced the sale of six retail centres across Poland, held by the Cromwell Polish Retail Fund to Star Capital Finance for EUR 285 mln.

Investment & finance

Poland Studio B with a new owner

schedule 16 May 2024
Opr./edited by JC

Skanska has sold the Studio B office building in Warsaw to Stena Real Estate for EUR 86 mln. This is already third transaction between the two parties in Central and Eastern Europe.

Investment & finance

Slovenia Hotel Austria Trend is sold

schedule 15 May 2024
Opr./edited by ANZ

Peakside Capital and Generali Investments Slovenia have sold, on behalf of Generali Adriatic Value Fund, the Austria Trend hotel located in the Slovenian capital.

Warehouse & industrial

Germany Garbe hands over its new warehouse

schedule 15 May 2024
Opr./edited by ANZ

Garbe has completed a distribution warehouse it developed in Holzgerlingen, south of Stuttgart, Germany, with a total area of around 14,500 sqm. The property was now officially handed over to Edeka Südwest.

Investment & finance

Poland Millions for MLP

schedule 15 May 2024
Opr./edited by JC

ING Bank Śląski has agreed to lend more than EUR 26.8 mln to MLP Group. The purpose of the loan is to refinance existing projects spanning an area of 58,200 sqm, and finance the construction of another 21,700 sqm of warehouse facilities within the MLP Poznań and MLP Poznań II logistics parks.

ESG

Poland LEED by the seaside

schedule 14 May 2024
Opr./edited by JC

Sopot Marriott Resort & Spa, inaugurated in 2012, has been awarded the LEED Gold certification in the Operations and Maintenance category, granted to existing buildings.

Office & mixed-use development

Poland Engineers will move into Brain Park

schedule 14 May 2024
Opr./edited by ANZ

Volvo Tech Hub will occupy 10,000 sqm of space in the Brain Park C building owned by Echo Investment. The new part of Volvo Car Poland will move into the Kraków office building in stages, starting in September 2024. 

Investment & finance

Poland mBank finances City Logistics Kraków III

schedule 14 May 2024
Opr./edited by JC

Panattoni has received financial support for the development of the City Logistics Kraków III project. The EUR 21 mln loan granted by mBank will make it possible to finalise the construction of the logistics park, located in Kraków’s Nowa Huta district.

Warehouse & industrial

Poland 7R partners up with Wood & Company

schedule 13 May 2024
Opr./edited by JC

7R has started a partnership with Wood & Company to jointly realize the development of 7R Park Tczew III. The first of four warehouses, mostly leased by ESA logistika Polska, has just been commissioned by Dekpol Budownictwo, while further halls are in the pipeline.

Investment & finance

Poland Real money for Real Management

schedule 13 May 2024
Opr./edited by JC

Real Management has signed a loan agreement with mBank for over EUR 14 mln in funding for construction of the Good Point V warehouse and production park in Łubna.

Warehouse & industrial

Poland Neopak has chosen Panattoni

schedule 13 May 2024
Opr./edited by JC

Industrial packaging distributor Neopak is to move its main warehousing facilities to Panattoni Park Warsaw South IV, where it is to occupy over 10,500 sqm of warehouse and office space.

Office & mixed-use development

Poland Office House won't get any higher

schedule 13 May 2024
Opr./edited by JC

The Office House building in the Towarowa 22 project has reached its target height of nine floors. Installation of energy-efficient glass has begun on the façade.

Eurobuild CEE

Poland The May issue of "Eurobuild" is already on the shelves!

schedule 13 May 2024
Eurobuild CEE

The May issue of "Eurobuild" has already been published, as usual, full of interesting articles and professional analyses! Lovers of news in the fields of technology, investments, finance, PRS, retail and logistics will not be bored!

Office & mixed-use development

Poland Eurocash stays at Diuna for longer

schedule 10 May 2024
Opr./edited by ANZ

Eurocash Group is staying at the Warsaw office complex, part of the portfolio of Pine Bridge Benson Elliot and Syrena Real Estate, for the next few years. Eurocash has signed a lease for four floors in Building A at Diuna, totalling nearly 4,600 sqm.

Investment & finance

Poland Another large transaction for Panattoni

schedule 10 May 2024
Opr./edited by ANZ

A specialist real estate investor has purchased the Panattoni Park Poznań XI for EUR 92.5 mln. The centre is one of the main logistics hubs for a leading European fashion platform for its operations.

Latest in Warehouse & industrial

schedule 17 May 2024

Cargus opens its new hub in Sibiu

CTP expands its partnership with Cargus, a courier company in Romania, with the inauguration of a new location in Sibiu.

schedule 16 May 2024

VGP Park Bucharest North will grow

VGP, a European provider of logistics spaces and semi-industrial real estate, has initiated the construction of the third building in VGP Park Bucharest North (A3). Building A covers an area of almost 26,000 sqm and has already two tenants, who have signed lease contracts for a total of more than 8,000 sqm.

schedule 15 May 2024

Garbe hands over its new warehouse

Garbe has completed a distribution warehouse it developed in Holzgerlingen, south of Stuttgart, Germany, with a total area of around 14,500 sqm. The property was now officially handed over to Edeka Südwest.

schedule 13 May 2024

7R partners up with Wood & Company

7R has started a partnership with Wood & Company to jointly realize the development of 7R Park Tczew III. The first of four warehouses, mostly leased by ESA logistika Polska, has just been commissioned by Dekpol Budownictwo, while further halls are in the pipeline.

schedule 13 May 2024

Neopak has chosen Panattoni

Industrial packaging distributor Neopak is to move its main warehousing facilities to Panattoni Park Warsaw South IV, where it is to occupy over 10,500 sqm of warehouse and office space.

schedule 09 May 2024

Medivet chooses FLP Bydgoszcz

Medivet, a provider of veterinary services and products, has leased more than 6,500 sqm of warehouse and office space at Fortress Logistics Park Bydgoszcz. The company will occupy circa 6,600 sqm in the facility.

schedule 08 May 2024

Alfa Warehouses launches its operations in Gdańsk

Panattoni has delivered new space within Panattoni Park Tricity East III. Alfa Warehouses, a company specialising in warehouse logistics, is commencing its operations in the Gdańsk investment. 

schedule 07 May 2024

Maxprint stays in Pruszków

Maxprint, a wholesaler of office machinery and equipment, has renewed its lease at MLP Pruszków II logistics centre. The tenant currently occupies almost 3,200 sqm of warehouse space in the complex.

schedule 07 May 2024

Scan Global already expands in CTPark Budapest East

CTP signed a contract with Scan Global Logistics for almost 13,000 sqm of space in CTPark Budapest East’s ULL2 Hall In December 2023. The logistics provider has already taken an additional 7,800 sqm of leased space in Q1 2024 in the ULL3 building, which is currently undergoing BREEAM certification.

schedule 30 April 2024

The Shell & Core strategy’s momentum

According to data from Colliers, a trend called Shell & Core is gaining momentum in the Czech Republic. This is a strategy where developers construct and build out industrial buildings to the stage of providing basic structures and infrastructure and wait for buyers.

schedule 26 April 2024

Panattoni builds for Mercedes

Panattoni has started construction of the new International Consolidation Centre (ICC) for Mercedes-Benz in Bischweier.

schedule 25 April 2024

iLogistic expands at CTPark Budapest West

CTP has signed a lease agreement with the logistics service provider for an additional 2,000 sqm, thus the company will occupy a total of 13,000 sqm at the facility.

schedule 24 April 2024

Magnice will be Outstanding

GLP has begun construction of the final hall of Wrocław V Logistics Centre in Magnice. The building, with an area of over 67,000 sqm, will be constructed in accordance with the requirements of BREEAM certification at the Outstanding level.

schedule 23 April 2024

Panattoni heads to the Middle East

Panattoni announces its expansion into the Middle East with the launch of an operation in Saudi Arabia. The company’s initial focus is on three of the largest Saudi Arabian cities: Riyadh, Jeddah and Dammam. The move marks a milestone for Panattoni in its ambition to capitalise on emerging opportunities in key global markets in the Middle East and Asia.

schedule 22 April 2024

Panattoni gets to work in Silesia

Panattoni has begun construction on a new industrial park in Będzin. The first stage of the work, that has already been launched, will comprise a 27,500 sqm building constructed on a speculative basis.

schedule 17 April 2024

The warehouse giant in Targówek has woken up

The JV of Partners Group and Peakside Capital Advisors has completed the construction of the first warehouse facility in City Point Targówek. The 7,000 sqm building fully leased to DPD Polska is the part of a complex which will provide nearly 100,000 sqm space in the biggest park of last-mile logistics in the Warsaw boundaries.

schedule 17 April 2024

Hillwood makes its debut near Poznań

Hillwood Polska has started its first investment in the Poznań market. As part of the Hillwood Poznań - Czempiń project, the company is building a warehouse complex of nearly 130,000 sqm.

schedule 16 April 2024

The logistics park in Sulechów is ready

Panattoni has finished the last stage of Panattoni Park Sulechów III. The centre has been developed for BestSecret, a European members-only online destination for premium and luxury off-price fashion. The building has a total area of 136,000 sqm, which makes it one of the largest logistics centres in the region.

schedule 16 April 2024

CTP builds for Quanta

CTP has signed a deal with Quanta Computer, a Taiwanese company that manufactures computers and electronic hardware, for a 22,500 sqm production facility at CTPark Jülich in northwest Germany.

schedule 16 April 2024

Fresenius stays with Prologis

Medical company Fresenius Medical Care has renegotiated its lease of 3,900 sqm of warehouse space and 120 sqm of office space in Prologis Park Poznań.

Edition 5 (288) May 2024

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