Poland has solidified its position as one of Europe’s leading industrial markets, ranking second in industrial take-up for the period between January and September 2024, according to a recent report by Cushman & Wakefield. Despite a slight slowdown in activity during the third quarter, the country remains a key player in the European industrial and logistics sector, driven by strong demand and strategic infrastructure.

Industrial Take-Up: A Consistent Leader in Europe

Poland recorded an industrial take-up of over 1.1 million sqm in Q3 2024. While this figure reflects a 34% decline compared to the previous quarter, the market's overall performance keeps Poland firmly in second place across Europe. The continued high demand for industrial space underscores the country’s pivotal role in the region’s logistics and manufacturing sectors.

What’s Driving Demand in Poland?

Poland’s industrial market growth is supported by several key factors:

• Strategic Location: Positioned at the crossroads of Central and Eastern Europe, Poland serves as a gateway for trade across Europe and beyond.
• Robust Infrastructure: Significant investments in road, rail, and port networks make Poland a logistics powerhouse.
• E-commerce Boom: Rapid growth in online retail has fueled demand for warehouse and distribution space, with companies like Amazon and Zalando expanding their operations.
• Nearshoring Trends: As businesses shift operations closer to home, Poland offers a cost-effective and strategically located alternative to Asia.

Speculative Construction Declines, Tightening Supply

The Cushman & Wakefield report highlights a drop in speculative construction, which refers to warehouse and industrial space built without a pre-arranged tenant. This trend is expected to tighten the availability of leasable space in the coming months, potentially driving up rental prices and competition for high-quality facilities.

Poland’s Outlook in the Industrial Market

Looking ahead, Poland’s industrial market is poised for sustained growth:

• Continued Demand: With strong leasing activity and stable rents, the country is expected to remain a preferred destination for international and domestic investors.
• Strategic Expansion: Companies in manufacturing, logistics, and e-commerce sectors are likely to expand their presence, leveraging Poland’s central location and competitive operating costs.
• Supply Challenges: As speculative construction decreases, tenants may face limited options, making early commitments to available spaces increasingly important.

Poland: A Key Player in Europe’s Industrial Landscape

Poland’s ability to attract significant industrial investment and leasing activity highlights its strategic importance in Europe. With robust demand, a favorable geographic position, and well-developed infrastructure, Poland is well-positioned to maintain its status as a leading industrial hub.

For businesses seeking a competitive edge in logistics and manufacturing, Poland’s dynamic industrial market offers unparalleled opportunities, making it a cornerstone of Europe’s supply chain ecosystem.