Poland Upper Silesia grows stronger

Gross demand reached 1.07 mln sqm, a 27 pct increase compared to the previous year. This result confirms the region's strong position among logistics operators, retail companies, and especially manufacturing plants, as confirmed by statistics on the demand structure. Over the past five years, one in three sqm of industrial space leased in Poland was in Upper Silesia.

High tenant activity and strong regional fundamentals

Upper Silesia is currently the second largest warehouse market in the country after Warsaw – both in terms of stock and lease transaction volume. The attractiveness of this location is primarily determined by its well-developed transport infrastructure, its location at the intersection of the A1 and A4 motorways, and the significant role of the Sławków Euroterminal in handling intermodal transport between Asia and Europe.

During the period under review, net demand reached 313,800 sqm, while new supply reached 294,500 sqm, representing a 2 pct year-on-year increase. It is also noteworthy that over the past three years, the average annual level of tenant activity in the region has remained close to 1 mln sqm, confirming the continued interest in this market.

Upper Silesia remains one of the most mature and simultaneously most diverse warehouse markets in Poland. Tenants appreciate not only the scale of available space but also the excellent infrastructure, access to labour, and the ability to service both domestic and international supply chains. The high level of tenant activity demonstrates that the region continues to effectively respond to business needs. Manufacturing companies, attracted by Upper Silesia's high level of industrialisation and highly skilled workforce, find particularly favorable business conditions here.
Bartosz Czuba, associate director, industrial, Savills Polska

High supply guarantees space availability

At the end of the period under review, 191,900 sqm of space remained under construction, half the previous year's figure. At the same time, the commercialisation rate for ongoing projects reached 35 pct, representing a 15 percentage point year-on-year decline. Although Upper Silesia still offers a relatively wide selection of space, the limited number of new investments entering the market in the coming quarters may gradually reduce the availability of units ready for immediate occupancy.

The vacancy rate in Upper Silesia reached 7.9 pct, increasing by 2.2 percentage points year-on-year. For tenants, this currently means greater flexibility in choice, but if demand remains high and development activity moderate, this situation may change.

The current market situation demonstrates a balance between high demand and the availability of space, which has remained elevated in recent quarters. This is a favourable moment for companies seeking cost-effective solutions, but the limited number of new projects in the coming quarters may gradually narrow the selection. From a market perspective, this will be a significant factor influencing vacancy rates and lease terms
Patrycja Dzikowska, associate director, research, Savills Polska.

Competitive rates and large transactions strengthen the market's position

Head rents in the Upper Silesian market currently range from EUR 3.95 to EUR 5.25 per sqm per month, while effective rents are in the range of EUR 2.95 to EUR 4.95 per sqm per month. With this cost structure, combined with a good location and access to modern facilities, the region maintains its status as one of the most competitive destinations for tenants in Poland.

The report also highlights the limited availability of large, well-prepared investment land. Prices for land meeting the requirements of warehouse projects range from PLN 250 to PLN 450 per sqm, depending on the location and the level of preparation of the property.

Among the largest transactions concluded on the market were Moto-Profil's lease extension for 56,000 sqm at Prologis Park Chorzów, the lease renegotiation for 40,600 sqm at Hillwood Sosnowiec Zagłębie 1 by one of the facility's current tenants, and a new agreement by Still for 40,000 sqm at Panattoni Park Katowice Airport. Among the largest facilities delivered were Panattoni Park Sosnowiec Expo with 62,100 sqm, Booster Zabrze with 58,800 sqm, and Panattoni Park Sosnowiec V with 44,600 sqm.

A mature market with prospects for further growth

Upper Silesia combines the advantages of a large, developed market with the potential for further growth. Proximity to the border, a strong industrial base, extensive transport infrastructure, and a large scale of existing resources ensure that the region remains one of the most important links in Poland's logistics map. At the same time, the decreasing availability of large-scale land and a more selective approach to new investments may increase the importance of project quality, offer flexibility, and responsiveness to tenant needs in the coming quarters.