New warehouse construction in Poland hits lowest since 2017 amid high demand

The construction of new warehouse spaces in Poland has reached its lowest point in six years, with only 402,000 square meters initiated in the second quarter. Overall, 1.3 million square meters of warehouse space are currently under construction nationwide, according to analysis by the consulting firm CBRE. Notably, over 60% of this space already has lease agreements in place.

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Companies are looking for facilities that are cost-effective, prepared for automation, meet ESG requirements and guarantee stable power supply.

Despite the slowdown in new developments, the demand for warehouse facilities continues to surge. In the second quarter alone, 1.93 million square meters of warehouse space were leased, marking a substantial increase from the 1.58 million square meters leased in the first quarter. Logistics, distribution, and transport sectors were the largest tenants, accounting for 46% of the leased space, followed by retail (27%) and manufacturing (18%).

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The key factors are the standard of the building, the possibility of adaptation, and the infrastructure.

Companies are actively seeking cost-effective, automation-ready facilities that meet ESG requirements and ensure stable power supply. Experts highlight that building standards, adaptability, and infrastructure are key considerations. The market is largely driven by new leases and relocations, which constituted 52% of total leased space in the first half of the year.

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With a limited number of new investments and simultaneously growing demand for warehouse space, the availability of free space will gradually decrease in the coming months.

The vacancy rate for unoccupied warehouse space has dropped from 7.3% in the first quarter to 6.6% in the second. Significant decreases are observed in the Lubuskie, Dolnośląskie, and Wielkopolskie voivodeships. Analysts predict that with limited new investments and rising demand, the availability of vacant space will continue to decline, making it increasingly challenging to find available warehouses, especially in prime locations.

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This means that less and less space available immediately is entering the market.