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Why do the largest regions still hold the cards in the warehouse market?

Why do the largest regions still hold the cards in the warehouse market?

 

Despite the development of new warehouse markets over the last 10 years, the foundation of logistics and industry in Poland remains six regions that concentrate the greatest activity of tenants and developers. Warsaw, Central Poland, Poznań, the Tri-City, as well as Upper and Lower Silesia account for over 80 percent of national warehouse stock, which is more than 30 million sqm.

The advantage of these locations stems from a combination of several factors – scale, developed infrastructure, labor market availability, and long-term capital concentration.

Historically, the Polish warehouse market developed in five regions, which were joined by the Tri-City at the end of 2023. – The dominance of the “big six” has been visible for years both on the supply and demand side – over 20 million sqm has been built here in the last decade, which accounts for over 77 percent of warehouses delivered in the country during this period. At the same time, the six largest regions accounted for over 46 million sqm of recorded demand, which represents almost 84 percent of the space leased during this time – informs Agnieszka Giermakowska, Director of Research and Advisory, ESG Lead, Newmark Polska.

A full spectrum of possibilities – specialization is strength

For companies considering entering the Polish market or further expansion, it is important that the so-called big six does not constitute a uniform organism, but a system of mutually complementary hubs that perform different functions in national logistics today. As Jakub Kurek, Head of Industrial and Warehouse Department at Newmark Polska, emphasizes, their advantage stems primarily from specialization. As a result, the choice of location is increasingly based not only on cost comparison, but more and more often on matching its character to the company’s operational model.

The Tri-City is primarily developing port and container logistics, leveraging the growing role of the Baltic Sea in international trade and import handling. Central Poland remains a key hub for domestic distribution and a natural point for the consolidation and further redistribution of goods. Upper Silesia combines logistics and industrial functions, creating a stable ecosystem for production and operators serving supply chains – says Jakub Kurek. – Meanwhile, Lower Silesia and Poznań serve as a logistics base for Western Europe, benefiting from proximity to the border and developed transport infrastructure. At the same time, Warsaw remains the largest consumer market in Poland and a key area for last-mile logistics, where the handling of the most demanding retail demand is concentrated.

– adds the Director at Newmark Polska.

Roads are changing Poland’s warehouse map

Despite the emergence of new locations and the gradual development of smaller centers, the warehouse market has been concentrated in the largest regions for many years.

Their advantage stems from the established operating model of the entire market. Infrastructure remains key, and the attractiveness of a location grows with its development. New sections of the A2 motorway towards the east and the expansion of the S7 route strengthen the position of Warsaw and Central Poland as key distribution hubs in the country. In parallel, we are observing the market “spilling over” beyond the borders of the agglomerations, towards locations such as Błonie, Grodzisk Mazowiecki, or Siedlce. Thanks to new investments, they offer lower costs while maintaining good access to the Warsaw market and the national transport network.

– claims Agnieszka Giermakowska.

Jakub Kurek notes that in Upper Silesia, the development of the S1 expressway is of key importance, as it improves connections with the south of Europe and strengthens the region’s position as a warehouse and industrial center, especially in the context of production and nearshoring. Lower Silesia, in turn, benefits from the expansion of north-south corridors, strengthening its role as a logistics base for the Czech Republic and Germany. The importance of the Tri-City is also clearly growing, where the construction of the Tri-City Metropolitan Bypass and the development of the S6 route significantly improve port accessibility and the efficiency of cargo handling.

The greatest transformational potential on a national scale today lies in the expansion of the A2 motorway to the east, the S7 corridor connecting the north and south, and the development of Via Carpathia (S19), which creates a transport axis along the eastern border of the European Union. In the long term, these investments may increase the logistics attractiveness of eastern Poland, integrating it into international supply chains and creating an alternative to the currently dominant western routes.

– explains Agnieszka Giermakowska.

Business follows labor availability

The undisputed advantage of the largest markets remains access to employees. Every new investment requires certainty that it will be possible to efficiently build both operational and technical teams.

In terms of a stable staff base – both among operational employees and specialists – the first-choice locations remain Lower and Upper Silesia and Poznań. These regions are distinguished by large resources of warehouse and production workers, as well as relatively high availability of technical skills, which allows for rapid team scaling and greater flexibility during seasonal periods. Warsaw and the Tri-City attract investors thanks to the influx of employees from abroad, which partially mitigates local staffing shortages. Central Poland – in particular the areas around Łódź and Stryków – offers access to employees with warehouse experience, making it attractive for e-commerce operators and distribution companies serving the entire country.

– claims Danuta Protasewicz, Regional Manager at Grafton Recruitment.

The assessment of human resources today is not limited only to quantitative aspects. Tenants are placing increasing importance on turnover rates, wage competitiveness, the availability of technical staff, as well as the presence of universities and vocational schools. As Danuta Protasewicz emphasizes, in many cases, it is the recruitment potential that determines the choice of a given market and is analyzed today with the same attention as operating costs or infrastructure availability.

Foundations of advantage – big attracts like a magnet

The history of their development plays a significant role in maintaining the dominance of the largest hubs. For years, they have built their position through successive investments, the development of logistics networks, and the influx of operators, which created a mechanism of self-reinforcing growth – the presence of large tenants generates further demand, which attracts other market participants.

As Jakub Kurek emphasizes, in the current market environment, the predictability of a location is of key importance. In conditions of increased uncertainty, capital is directed where the risk is lowest – primarily due to developed infrastructure and stable lease liquidity. – As a result, despite periodic changes in the economic climate, the market remains strongly concentrated in the largest and best-established regions. It is there that infrastructure and tenant activity accumulate, which strengthens the scale effect and translates into greater resilience of these markets. For companies, this means the ability to develop and scale operations within one region, while in smaller locations these opportunities are limited – the expert points out.

At the same time, there are examples on the map of Poland of markets outside the “six” that are developing thanks to local advantages. – The Lubuskie region benefits from its proximity to the German border and the course of the S3 and A2 corridors, which strengthens its attractiveness for companies serving western markets. In turn, Rzeszów is growing thanks to investments by Panattoni and CTP and the development of the aviation and defense sectors, which shows that specialized industries can also support growth outside the main hubs – emphasizes Agnieszka Giermakowska. She adds that in the long term, the share of the “big six” in the stock may gradually decrease, but it will still remain at a very high level – likely no lower than 70 percent of the country’s stock.

 

Source: Newmark Polska