High Demand in the Łódź Region in 2024 Driven by Lease Renewals
- Oprac. M.K.
- Kategoria: English zone
In 2024, the Łódź Voivodeship solidified its position as a key point on Poland’s logistics map. The region achieved a record-breaking volume of industrial and logistics space lease transactions, reaching 1 million sqm, marking a 61% year-on-year increase. Despite a decline in new supply and a slowdown in developer activity, the Łódź region remains the top-choice market for central operations of the largest retail and distribution companies. Stable rental rates, availability of large units, and a favorable geographic location continue to position the region as one of the most competitive and mature warehouse markets in the country. Poland’s largest commercial real estate advisory firm, AXI IMMO, presents a market analysis in its special publication "Łódź Market Snapshot."
In 2024, the Łódź region recorded the highest tenant activity in its history. Gross demand reached 1 million sqm, while net demand stood at 495,000 sqm - representing increases of 61% and 56% year-on-year, respectively. Notably, over half of all transactions were lease renewals, indicating a mature market and strong tenant loyalty to the location. Within the total transaction volume for 2024, the retail sector demonstrated the highest level of tenant activity, surpassing the traditional leader - logistics operators (3PL). Retail chains accounted for 37% of gross demand and an impressive 58% of net demand. According to AXI IMMO analysts, this trend reflects changes in supply chain management, with retailers increasingly choosing to run their own logistics operations in central Poland. This strategy enables in-house control of distribution processes and flexible responses to consumer needs and changing market conditions.
Among the largest lease transactions were the renewal and expansion of an e-commerce client at Hillwood Stryków II (105,700 sqm), and two major deals by retail sector tenants - 72,000 sqm (renewal) at Central European Logistics Hub, and 62,000 sqm (new lease) at Hillwood Łódź II (Chocianowice).
The warehouse market in the Łódź region stands out nationwide in terms of transaction scale. Of the 75 lease agreements recorded last year, 75% involved spaces exceeding 10,000 sqm. This high average lease size is unique compared to other markets and confirms the region’s role as the central warehouse hub for many of Poland’s largest operating companies. Today, major leases are signed not only in Stryków - traditionally recognized as the central warehouse hotspot - but also in Zgierz, south of Łódź near Tuszyn, and to the east around the Nowosolna interchange - Hubert Wojtera, Head of Industrial & Logistics Agency, AXI IMMO.
Following the national trend, developer activity in the Łódź region also declined. New supply in 2024 amounted to 343,000 sqm (-17% y/y), and the space under construction fell to 232,000 sqm (-42% y/y). Nevertheless, the region remains among the leaders in terms of ongoing investments. Key completions in 2024 included Hillwood Park Zgierz II (nearly 77,000 sqm) and MDC2 Park Łódź South (52,000 sqm). As a result, by the end of 2024, the total stock of modern industrial and logistics space in the region reached 4.9 million sqm.
It is also noteworthy that 51% of the space under construction was developed on a speculative basis - still above the national average - demonstrating continued developer confidence in the market’s potential. By the end of 2024, the vacancy rate in the region stood at 9.7%, the highest among Poland’s five major warehouse markets. In absolute terms, approximately 475,000 sqm remained available for lease, primarily in the form of large modules exceeding 10,000 sqm.
Rental rates in the Łódź Voivodeship remain stable, ranging from €3.60 to €4.60/sqm/month. The lowest rates are available in Piotrków Trybunalski, while the highest are found in Łódź.
Source: AXI IMMO