Polish Industrial and Logistics Space Market: Dynamic Growth in 2023

In 2023, the industrial and logistics space market saw a significant increase in supply. The market leaders were the provinces of Mazowieckie (6.3 million sq. m.), Śląskie (5.5 million sq. m.) and Łódzkie (4.5 million sq. m.). These regions also delivered the most new space: the Mazowieckie (690,000 sq. m.), Silesian (590,000 sq. m.) and Lubuskie (437,000 sq. m.).

Maciej Chmielewski, Senior Partner at Colliers, explains, "The war in Ukraine caused significant changes in the construction market in 2022, which was reflected in lower availability of general contractors, higher material costs and longer project completion times. 2023 brought a significant improvement in the market."

High tenant interest in industrial and logistics space translated into gross demand of 5.7 million sqm. Dominika Jędrak, Director of Advisory and Market Research at Colliers, notes, "Despite forecasts indicating a decline of around 40%, it actually declined by around 15% y/y. In the fourth quarter alone, demand volume was the third highest in the market's history."

The highest volume of leased space was recorded in the Mazowieckie Voivodeship (1.5 million sqm), Lower Silesia (1 million sqm) and Silesia (915,000 sqm). Rental rates increased, especially in Warsaw, where the base amount started at EUR 4.40/sqm/month and the highest amount exceeded EUR 6.95/sqm/month.

The vacancy rate rose to 7.3% at the end of December 2023, as a result of a significant amount of new supply brought to the market. The highest vacancy rates were recorded in the provinces of Świętokrzyskie (18.5%), Lubuskie (14.4%) and Łódzkie (10.2%).

Poland is strengthening its position as the second largest producer of batteries for electric cars. Planned investments, such as the battery component factory in Nysa and the start of battery production by Impact Clean Power Technology in Pruszków, point to further growth in this sector.

Transportation infrastructure plays a key role in market development. The construction of a deep-water wharf at BalticHub in Gdansk, the expansion of the port in Swinoujscie and the modernization of the port in Elblag will significantly increase the attractiveness and accessibility of logistics.

The market is seeing an increase in the popularity of facilities offering green solutions, confirmed by certifications. Antoni Szwech, Senior Analyst at Colliers, explains: "Increasingly, new industrial and logistics space is being developed in accordance with ESG. This is no longer a trend, but a market standard."

In 2023, Panattoni Park Szczecin III became the first industrial and logistics project in Poland to receive a BREEAM certificate at the highest Outstanding level.