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Poland MarketBeat

Katarzyna Lipka • 31/05/2021

Industrial

The Polish industrial market continues to power ahead, with 1.15 million sq m of warehouse space delivered in the second quarter alone. Another 4.35 million sq m is underway. Speculative construction accounts for 48% of the total development pipeline, equating to 2.1 million sq m, up by 0.9 million sq m from a year ago. The overall vacancy rate currently stands at 3.3%, which represents a decrease of close to 2 pp on the same time last year

Retail

Nearly 100,000 sqm of modern retail space came on stream in Q2 2022, bringing Poland’s total retail stock to 15.6 million sq m. The three months to June saw ten new completions, including nine retail parks in smaller cities such as Busko-Zdrój, Giżycko, Jasło, Krotoszyn, Pszczyna, Puławy, Sławno, Szczytno and Łany near Wrocław. In addition, OBI opened its new retail warehouse in Mysiadło near Warsaw.

Office

Poland’s office development pipeline has recently shrunk considerably, especially in Warsaw, where there is only around 235,000 sq m under construction compared to close to 750,000 sq m in early 2020. Office stock under construction in regional cities amounts to 485,000 sq m, down from the pre-pandemic 850,000 sq m. These lower volumes are a reflection of both fewer projects breaking ground due to the pandemic and rising office construction and fit-out costs, as well as uncertainty caused by the war in Ukraine.

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