Poland continues to be one of the most attractive industrial and logistics markets for investment. The combined costs of warehouse lease, energy consumption and labour are among the lowest in Europe - as much as 34% lower than in the Czech Republic and 62% lower than in Germany, reveals the latest summary of Q3 2022 on the Polish warehouse market from global real estate services firm Cushman & Wakefield.
- Market uncertainty remains high due to the war in Ukraine, high inflation, the energy crisis and the risk of a global recession. These factors are directly contributing to the forecasted slightly weaker market development.
- Leasing activity for the first three quarters of 2022 hit a record high of 5.4 million sq m.
- Poland’s warehouse vacancy rate rose for the first time since September 2020. New supply surpassed 1 million sq m in each successive quarter of the year, improving warehouse space availability.
- Warehouse rents rose by an average of 25% over the year.
An overview of the Polish economy
Warehouse demand in Poland remains strong
Warehouse supply hits a record high amid an increase in availability
The Polish industrial sector experienced stable growth in the first three quarters of this year. New supply exceeded 1 million sq m for the third time in a row, with Poland’s total industrial stock likely to surpass the 30 million sq m mark in the first quarter of 2023. Healthy supply levels go hand in hand with substantial net take-up which came to close to 1 million sq m, down from the previous quarter’s 1.6 million sq m but evidence of strong leasing activity. The outlook for the quarters ahead remains positive given the favourable trends towards nearshoring and the growth of the CEP sector (the volume of courier parcels surpassed a staggering one billion last year and is expected to rise by another 31% next year to 1,332,000,000) and the continued growth in online retail sales (according to Statistics Poland (GUS), the share of e-commerce in total retail sales was 9.7% in September 2022, up by 1.3 pp on the same time last year, having more than doubled since pre-pandemic, albeit other research centres put it at 13% - three times higher). We must, however, bear in mind the uncertainty surrounding high inflation and tight project financing conditions,
says Damian Kołata, Partner, Head of Industrial & Logistics Agency Poland, Head of E-Commerce CEE, Cushman & Wakefield.
Rents are also rising
The Polish industrial market remains competitive compared to other European markets
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 50,000 employees in 400 offices and 60 countries. In 2021, the firm had revenue of $9.4 billion across core services of property, facilities and project management, leasing, capital markets, and valuation and other services. To learn more, visit www.cushmanwakefield.com