Polish Warehouse Market Exceeds 35 Million Square Meters

At the end of the first quarter of 2025, the total stock of modern warehouse and industrial space in Poland exceeded 35 million square meters, reflecting an annual growth of just under 8%.

New supply between January and the end of March amounted to approximately 679,700 square meters, representing a 34% increase compared to the previous quarter but a decline of over 20% compared to Q1 2024. Nearly half of this volume was delivered in Lower Silesia, which has now overtaken Central Poland in terms of total warehouse and industrial stock, moving up to third place among the largest regional markets in Poland - said Jakub Kurek, Head of Industrial and Warehouse Department at Newmark Polska.

Developer activity continues to decelerate quarter by quarter. As of the end of March 2025, less than 1.4 million square meters of modern warehouse and industrial space was under construction — 21.8% less than in Q4 2024 and nearly 41% less than in the same period in 2024. This is the lowest quarterly construction volume since Q3 2019. Only three provinces — Mazowieckie, Śląskie, and Łódzkie — had over 250,000 square meters under construction each, while in the remaining regions, the volume was less than 100,000 square meters. Between January and March, developers launched the construction of nearly 310,000 square meters of warehouse space, 70% of which was initiated in the Mazowieckie region. Altogether, almost 80% of warehouse investments underway in Poland are concentrated in the six largest regions: Warsaw and its surroundings, Upper Silesia, Lower Silesia, Central Poland, Greater Poland, and the Tri-City.

The total volume of leased space in Q1 2025 reached nearly 1.11 million square meters, marking a year-on-year increase of over 16%, but a quarter-on-quarter drop of 45.1%. Over the past five years, average Q1 tenant activity has not exceeded 1.3 million square meters. The demand observed in the first quarter of 2025 suggests that tenant interest in warehouse leasing will remain stable throughout the year, with the total volume of signed leases likely to exceed 5 million square meters - added Jakub Kurek.

In the transaction structure for Q1 2025, renegotiations dominated, accounting for 57% of total demand. New leases made up 36%, and expansions accounted for the remaining 7%.

It is also worth noting that during this period, tenants leased a total of 56,650 square meters under short-term contracts (up to one year). A significant share of renegotiations was recorded in several regions: Mazowieckie (76.6% of total demand), Zachodniopomorskie (72.2%), Śląskie (69.1%), and Łódzkie (67.0%).

Regional Shifts

Among the largest transactions completed between January and March 2025 were the lease of 67,800 square meters at 7R Park Gdańsk III by a confidential 3PL sector tenant, the renegotiation of a 55,900 square meter lease at Prologis Park Chorzów, and the lease renegotiation by OBI at a 50,600 square meter BTS facility in P3 Łódź.

At the end of March this year, the share of vacant space in the total stock was 8.5%, up by 1.0 percentage point quarter on quarter and 0.3 percentage points year on year. Availability in existing buildings continues to rise, reaching nearly 3 million square meters at the end of Q1 — the highest vacancy level in the history of the Polish warehouse market. In comparison, projects currently under construction offer 565,500 square meters available for lease, accounting for just over 41% of the total space under construction.

The full report is available at: https://www.polskamagazyny.pl (in Polish)

Source: Newmark Polska