New warehouse supply hits an all-time high in Q1

In current market conditions, tenants are less willing to expand or relocate, as evidenced by the increase in the share of renegotiations, which accounted for 45% of total take-up for the second quarter in a row. Poland, however, remains one of the fastest growing logistics markets, with leading developers continuing to deliver. This suggests investors’ strong faith in the further long-term growth, driven by the continued expansion of e-commerce and manufacturing. Some manufacturers are already relocating part of their operations to Poland in order to shorten and secure supply chains in Europe,

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

More than 1.9 million sq m was delivered in the first three months of 2023 – the highest ever result noted in a single quarter. In Q1, developers began the construction of 870,000 sq m, marking a rebound in development activity – following a weak Q4 from the previous year (when only 300,000 sq m came on stream). At the end of March, there was more than 2.1 million sq m of warehouse space under construction, of which 54% was being developed speculatively,

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

Looking forward, development activity will depend largely on factors linked to demand dynamics and the cost of financing. Companies that make extensive use of equity capital are currently the most active,

adds Damian Kołata.  

We are, however, starting to see some signs of stabilisation with increased warehouse availability and more predictable construction costs than a year ago,

comments Adrian Semaan.