Polish industrial market claims a podium finish

The vacancy rate hit 7.6%, an increase of 3.4 pp y-o-y and 0.3 pp q-o-q, the highest level since December 2020. As of the end of Q2 2023, the total warehouse stock in Poland stood at 30.66 million sq m, up by 19% y-o-y,

says Adrian Semaan, Senior Research Consultant, Industrial & Logistics Agency, Cushman & Wakefield.

At the end of June 2023, a total of 2.1 million sq m of warehouse space was under construction, 61% of which was available for lease - mainly in Mazovia (327,000 sq m), Łódzkie (240,000 sq m) and Lower Silesia (227,000 sq m). Development activity is likely to be driven by higher rents incentivizing investors to launch new industrial projects. The growing volume of warehouse space has seen Poland join the three largest industrial markets of the European Union with more than 30 million sq m of warehouse stock each. Poland has overtaken the Netherlands, claiming third place behind Germany and France,

adds Damian Kołata, Partner, Head of Industrial & Logistics Agency Poland, Head of E-Commerce CEE, Cushman & Wakefield.

The decrease in leasing volumes has been accompanied by a comparable downturn in development activity, which should keep the industrial market relatively stable in the short term. The outlook for demand in the medium term, however, remains optimistic thanks to the anticipated recovery in consumer sentiment, further growth in the logistics industry servicing e-commerce; and the increasing trend towards nearshoring,

says Damian Kołata.