Poland is now the third largest warehouse in Europe

According JLL data, Poland ranks third in Europe in terms of leased warehouse space. The warehouse market in the country has not been in such good shape for a long time.

Over the last five years, Poland ranked 7th in Europe. However, the most recent data for the first three quarters of 2016 show that the country has moved up to 3rd place. Ahead of Poland is Great Britain and the largest European market – Germany.

What has contributed to this change?

“We have some of the lowest lease rates in the region, low construction costs and one of the best labour markets. Moreover, our country makes it possible to obtain considerable tax exemptions and set up operations in special economic zones. Because of these benefits, tenants and investors have been increasingly willing to set up their business there,” says Tomasz Olszewski, Head of Industrial CEE, JLL.

Poland’s geographical location is also an important factor. “Our country is located in Central Europe, at the intersection of the North-South and East-West trade routes. From the point of view of the logistics industry, it is a tremendous advantage for businesses that distribute products in Central and Eastern Europe,” says Olszewski. In addition, Poland has plenty of warehouse space. The Polish market offers well-equipped, high quality facilities, as well as very competitive lease rates. These factors are the reason why manufacturing companies find Poland to be an exceptionally attractive market.

Investors are drawn to Poland

JLL data shows that in Q3 2016 alone, companies have leased more than 900,000 sqm of space in Poland, which is a record result for such a period. Additionally, the period marked the conclusion of the largest single contract in the history of the Polish market. Zalando will set up its logistics centre in Gardno near Gryfino. The company works with Goodman to construct a 130,000 sqm property. “Zalando’s contract shows that e-commerce is increasingly important for the warehouse market,” says Tomasz Olszewski. According to a report by Prologis and JLL, new lease agreements concluded by e-commerce companies could total up to 700 thousand sqm by 2020.

Tomasz Olszewski