Warehouse market: Poland ranks third in Europe

The latest data from JLL shows that Poland has hit the podium —the country ranks third in Europe in terms of the amount of rented warehouse space. Ahead of Poland are the Netherlands and the largest European market—Germany. Every tenth square metre of warehouse space in Europe was rented in Poland.

An analysis conducted by the consulting company JLL shows that the Polish warehouse space market is in excellent condition. The total surface area leased under new contracts and expansions exceeded 3.1 million sqm in 2017, which is almost 1 million sqm more than in 2016. Taking renegotiated contracts into account, gross demand soared to over 3.9 million sqm.

Why has Poland become so popular?

“We still have some of the lowest lease rates in the region and low construction costs. 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 Tomasz Olszewski, Head of Industrial CEE, JLL.

Moreover, there is no shortage of warehouse space. “The Polish market offers well-equipped, high-quality facilities,” adds Olszewski. Currently, the total amount of warehouse and industrial space in Poland is 13.5 million sqm. But many investment projects are still underway, with 1.2 million sqm of warehouse space under construction.

In the ranking, Poland is followed by France, Russia, Spain, and Italy. The least amount of warehouse space was rented in Hungary.

Tomasz Olszewski