Around 4 million sq m of warehouse space in the Łódz province is dedicated to e-commerce operations, according to data from global real estate services firm Cushman & Wakefield, making it the second most popular destination for online retailers in Poland. Another contributor to the appeal of the Łódź market is the recently completed motorway orbital route around the city, which has significantly increased the region’s chances of attracting new investments and warehouse projects. Land secured in the Łódź province by developers offers 2.5 million sq m of warehouse development opportunities, says Cushman & Wakefield in its report Tailor Your Business in Łódź. Warehouse & Production Market in Central Poland.
According to Cushman & Wakefield’s ‘Last Link: Quantifying the Cost’ report, the last link of the e-commerce supply chain can account for 50% or more of total supply chain spend. It is no wonder that today, in the environment of great economic uncertainty, e-commerce companies are increasingly looking for new locations in the Łódź area to cut lead times and offer customers a choice of the most convenient collect and return options, which is particularly relevant given the rise of re-commerce,
comments Damian Kołata, Head of Industrial & Logistics, Head of E-Commerce CEE, Cushman & Wakefield.
The Łódź province ranks second, after Lower Silesia, in terms of percentage of warehouse space leased to e-commerce versus Poland’s total stock of such space - it stands at 14%. It is worth emphasizing that this proportion has remained relatively stable since our 2019 survey, which showed that 34% of the province’s total warehouse stock of 2.6 million sq m, i.e. 887,000 sq m, was warehouse space dedicated to e-commerce,
adds Katarzyna Misztal, Negotiator, Cushman & Wakefield.
A smart city is a city that is comfortable to live in and is perfectly organised in terms of last mile logistics. Łódź is very likely to become one. Time has shown that evolution is taking us from distribution centres being the last link in warehousing to an extended network of courier sorting facilities, urban warehouses and micro-hubs that will play a key role in the logistics of a smart city,
explains Renata Krzyżanowska, Associate, Cushman & Wakefield.
Local labour market benefits Łódź
Average employment in the Łódź province has recently remained largely unchanged at approximately 350,000, underlining the fact that the local labour market is stable and the region is strengthening its position as an attractive investment destination. Łódź alone has more than 138,000 people in work[1]. According to the latest Workmonitor from Randstad, it usually takes three months on average to find a job, which is not only an incentive for candidates to apply for new jobs, but above all facilitates recruitment. A strong and efficient labour market is one of the region’s key competitive advantages in attracting investments, including in logistics and e-commerce,
concludes Joanna Kubik, Senior Strategic Business Development Manager, Randstad.
For more information please see Cushman & Wakefield’s latest report “Tailor Your Business in Łódź. Warehouse & Production Market in Central Poland”, which looks at the investment potential of the Łódź region as a location for warehouse, logistics and e-commerce projects.
Report authors: Damian Kołata, Partner, Head of Industrial & Logistics Agency Poland, Head of E-Commerce CEE; Katarzyna Misztal, Negotiator, Industrial & Logistics Agency; Renata Krzyżanowska, Associate, Industrial & Logistics Agency; and Adrian Semaan, Senior Research Consultant, Industrial & Logistics Agency.
The full report can be downloaded here.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in approximately 400 offices and 60 countries. In 2022, the firm reported revenue of $10.1 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), Environmental, Social and Governance (ESG) and more. For additional information, visit: www.cushmanwakefield.com.