The amount of warehouse space in Poland is nearly 8 million sqm. In the much smaller Czech Republic (10 million inhabitants), the warehouse market consists of 4 million sqm. This comparison shows that our market has significant growth potential.
Currently, the warehouse space market in Poland is concentrated in five main regional markets: Warsaw and its surroundings, Central Poland, the Poznań region, Wrocław, and Upper Silesia. Due to the large, constantly increasing potential of these regions, these areas are well-recognized by developers, and a properly planned warehouse investment has a high chance of success.
Poznań and its surroundings are a region of dynamic development of logistics infrastructure. These areas abound in warehouses belonging to the largest companies. Among the tenants of PointPark Poznań, a logistics park owned by P3 located near the A2 motorway and the S11 expressway, are PF Concept, CEVA Logistics, DHL, and ND Polska, among others. In turn, the Warsaw region is developing dynamically thanks to the expansion of infrastructure, including the bypass and roads connecting to the European motorway network. The development of PointPark Properties (P3) and the increase in the capabilities offered by these regions justify plans for further expansion of investments belonging to the P3 portfolio.
– Our warehouse parks – PointPark Mszczonów and PointPark Poznań have the potential for expansion by over 230,000 sqm of space in the case of Mszczonów and over 93,000 sqm in Poznań, respectively. In the near future, we are also considering the implementation of new investments, mainly in the rapidly developing markets of Wrocław, Poznań, Upper Silesia, and Warsaw – says Piotr Wąs, Leasing and Development Director, PointPark Properties (P3).
Most investors still show caution in implementing facilities in locations other than those situated in key regional market areas, however, ongoing infrastructure investments in other parts of Poland may soon influence an increase in the industry’s interest in other parts of the country.
– The fragmentation of areas around the largest regional cities causes further development of these regions, while the newly emerging infrastructure is changing the map of key locations, which will be reflected in changes in rent levels for the most important locations for the logistics sector – says Peter Becar, Managing Director CEE, PointPark Properties (P3).
– Also significant for the development of the industrial real estate sector is the improvement in the quality of life in Poland itself and the strengthening of the attractiveness of individual cities’ offerings, which favors the location of management staff in them – adds Piotr Wąs.
Both planned and already ongoing infrastructure investments generate demand for new locations, while simultaneously increasing access to regional markets. Markets such as Rzeszów, Bydgoszcz, or Lublin are developing systematically. Additionally, the growing interest of tenants in new locations suggests that additional points will appear on the warehouse map of Poland in the future.
– Apart from locations key to the warehouse market, there are places in Poland that are worth observing and considering for future investments. An example could be Rzeszów, due to the newly constructed A4 motorway and the new North-South road system, of which this city will be a beneficiary. The region’s advantage is also its proximity to the eastern border of the European Union, the dynamic development of retail trade in the area, and the concentration of competitive labor. These factors may soon determine the leasing of warehouse space in this area – says Piotr Wąs.
Bydgoszcz is also characterized by growing potential – a city that is currently a multi-industry industrial and service center, where many domestic and foreign corporations operate. The Bydgoszcz Industrial and Technological Park operating there with great success offers almost 300 hectares, part of which belongs to the Pomeranian Special Economic Zone. The improvement of road infrastructure and local authorities positively inclined towards cooperation may also attract investors and tenants to this location in the future.
– The possibilities for the development of the industrial and warehouse market in Bydgoszcz may be strengthened by the modernized road leading to the A1 motorway (i.e., road no. 10) and the future construction of the S5 expressway towards Poznań (currently the A2 motorway is fully open on the Poznań – Gniezno section), which will be a future expressway connection between the Kuyavian-Pomeranian and Lower Silesian voivodeships. Additionally, the presence of the Bydgoszcz Industrial and Technological Park and the concentration of specialized labor may contribute to a significant strengthening of this region’s potential – says Piotr Bzowski, Leasing & Development Director.
Among other things, the lack of adequate road communication has so far discouraged investors and tenants from locating their warehouses in the vicinity of Lublin, however, planned infrastructure investments in this region may also influence an increase in the industry’s interest in this location. From mid-2014, state support for entrepreneurs operating within Special Economic Zones (SEZ) will be reduced, but Eastern Poland (including Lublin) will not be covered by these changes.
– In the future, Lublin may attract the attention of warehouse and production space tenants not only due to the concentration of highly qualified labor but also the improvement of road communication – through the new city bypass and the construction of expressway no. 17, which will significantly shorten the commute to the capital. A plus for investors is also the possibility of receiving full grants, which will invariably be available for activities within the SEZ in the areas of Eastern Poland – adds Piotr Bzowski.
The possibilities for the development of the warehouse market in Poland are favored by the potential of the entire country and its price competitiveness.
– The advantage of Poland as the largest market in Central and Eastern Europe, both in terms of area (almost 8 million sqm) and the number of inhabitants (almost 40 million), is its efficiency resulting from the lowest rent levels in the region – emphasizes Peter Becar. – Population density coefficients indicate that Poland has great potential. The Czech Republic, with over four million sqm of warehouse space, has about 10 million inhabitants. These indicators show further possibilities for the development of the warehouse sector in Poland.