Poland’s industrial and logistics sector sees record growth in Q2 2024
In the second quarter of 2024, Poland’s industrial and logistics sector reached new heights, with take-up hitting a record 1.76 million sqm. This figure represents one of the strongest results across Europe for the April to June period. Large leases ranging from 20,000 to 130,000 sqm made up 56% of the total volume, with new leases and expansions accounting for 60% of all deals. By the end of the first half of 2024, total gross take-up reached nearly 2.7 million sqm, marking a 23% year-on-year increase.
Among the largest lettings in Q2 were LPP’s 103,000 sqm lease at Bydgoszcz Białe Błota Logistics Centre and a confidential tenant’s 91,000 sqm lease at Panattoni Park Wrocław Logistics South Hub. Additionally, LX Pantos renewed its 72,000 sqm lease at Prime Logistics Wrocław, solidifying the region’s position as a logistics hub.
Construction activity also saw a significant uptick, with 1.64 million sqm of new supply delivered in the first half of 2024. Another 1.64 million sqm is expected to be completed by the end of the year. As of June 2024, Poland’s total industrial and logistics stock stood at 33.52 million sqm, up 9% from the previous year, with the country on track to surpass the 35 million sqm milestone soon.
Martyna Kajka, Director of Industrial and Logistics at BNP Paribas Real Estate Poland, noted, “New supply for the first six months of 2024 reached 1.64 million sqm, with a similar volume scheduled for completion in the second half of the year. Poland’s total industrial and logistics stock is on course to surpass 35 million sqm in the near future.”
At the close of Q2, more than 1.98 million sqm of industrial and logistics space was under construction. Lower Silesia is emerging as a hotbed for development, with notable projects like P3 Wrocław’s buildings 1 and 3, measuring 130,000 sqm and 92,000 sqm respectively, and ECE Kąty Wrocławskie’s 79,000 sqm facility. These developments had an average pre-let rate of nearly 55%, up 3.6 percentage points from the previous quarter.
Krakow achieved a significant milestone in Q2 2024, with its total industrial and logistics stock surpassing 1 million sqm. This makes it the tenth Polish market to join the “one million sqm club.” Despite its rapid growth, Krakow faces challenges such as land constraints, market fragmentation, and competition from the larger Upper Silesian region.
The Krakow industrial market has doubled in size over the last five years, with a vacancy rate of just 6.4% at the end of Q2, compared to the national average of 8.3%. Leasing activity in the Lesser Poland region reached 232,000 sqm in 2023, a 4% increase from the previous year. However, only 43,000 sqm of leases were signed in the first half of 2024 due to low availability of vacant space. Key drivers for Krakow’s growth include strong transport infrastructure, access to skilled labor, and the completion of the S7 expressway, which is expected to boost growth in the region’s northern areas.
At the end of Q2 2024, the overall vacancy rate in Poland’s industrial and logistics sector stood at 8.3%, a slight increase of 0.1 percentage points from the previous quarter and 1.5 percentage points year-on-year. The highest vacancy rates were recorded in the West (21.8%), Warsaw I (12.3%), and Central Poland (10.8%), while the lowest were in Opole (2.6%), Szczecin (4.0%), and the East (5.2%).
New leases accounted for 54% of total take-up in Q2, followed by renewals (39%) and expansions (7%). Lower Silesia led the way in occupier activity, recording 450,000 sqm of take-up, followed by Warsaw II with 268,000 sqm and Upper Silesia with 250,000 sqm.
Poland’s warehouse market, traditionally dominated by large, simple big-box facilities for e-commerce and retail, has evolved significantly. According to Robert Pawłowski, Director of Industrial and Logistics at BNP Paribas Real Estate Poland, “The demand for both large and smaller customised grade A buildings has led to the success of logistics parks offering units of various sizes and production space. Both developers and tenants are increasingly embracing modern and sustainable solutions to ensure energy security.”
Factors influencing warehouse development have also shifted. While proximity to motorways and road infrastructure remains important, access to a skilled workforce and quality of life for employees—including proximity to public transport and cycle lanes—have become critical in site selection.
The sector’s growth is reflected in several recent developments. Notino opened its first warehouse in Poland, a modern facility in Głuchów designed to ship orders domestically and internationally. Amazon has also announced multi-billion projects aimed at expanding logistics, cloud infrastructure, and R&D, alongside investments in wind power in Poland. Additionally, City Logistics Poznań III, Poland’s largest city logistics warehouse, was recently completed, spanning nearly 44,000 sqm and focusing on last-mile logistics.
The industrial and logistics sector in Poland continues to grow at a rapid pace, with demand for modern, sustainable facilities driving development and reshaping the market.
Source: BNP Paribas Real Estate Poland
