Polish warehouse market remains stable, with a notable rise in certified “green” space

The Polish warehouse market remains on a steady course, despite a slowdown in the post-pandemic growth momentum. Total logistics and industrial space in Poland has now surpassed 35.3 million sqm, marking a 7.7% year-on-year increase. One of the most prominent trends shaping the sector is the rapid expansion of space aligned with sustainable development principles.

Green Warehousing on the Rise

Environmental, social and governance (ESG) factors are playing an increasingly important role in the strategies of investors, developers, and occupiers. Currently, more than half (55%) of all warehouse space in Poland holds environmental certifications. One in five facilities meets the highest certification standards, such as BREEAM Excellent or Outstanding.

– Sustainability is no longer just a trend – it’s a market standard. Green certifications not only enhance reputation but, more importantly, lead to real operational savings and easier access to financing, said Natalia Mika, Senior Negotiator in the Industrial and Logistics Leasing team at Knight Frank.

This direction is especially evident in BTS (build-to-suit) projects, where 65% of newly delivered space in the past 12 months has been certified as environmentally sustainable.

Developer Activity Slows

In Q1 2025, developers completed 680,000 sqm of new space – a 20% decline compared to the same period last year. An even steeper drop was seen in projects under construction, which fell by 41% year-on-year to 1.4 million sqm.

– High financing costs and a more balanced demand environment are prompting developers to take a more cautious approach. The prevailing strategy is ‘we build if we have a tenant, added Natalia Mika.

Notably, 60% of space currently under construction is already secured by pre-let agreements, indicating a clear retreat from speculative development.

Solid Demand, with Renegotiations on the Rise

Leasing activity in Q1 2025 totalled 1.1 million sqm – a 16% increase year-on-year, though below the quarterly average for 2024 (1.5 million sqm). Over half of all leasing volume was concentrated in the three largest markets: Warsaw, Upper Silesia, and Central Poland.

Demand was driven primarily by lease renegotiations, which accounted for 56% of total activity, reflecting a cautious stance among tenants. New leases made up 36%, while expansions represented just 7%.

Rent Levels Hold Steady Amid Rising Vacancy

The vacancy rate rose to 8.5%, up from 7.45% at the end of 2024, driven by supply outpacing net demand. Despite this, rental rates remain stable. In logistics parks, rents range from €3.80 to €5.00/sqm/month, while urban warehouses command rates between €5.00 and €7.50/sqm/month.

– The uptick in vacancy is a natural consequence of the previous investment boom. The market is rebalancing, and the stability of rental rates is a sign of its maturity, said Szymon Sobiecki, Market Research Analyst at Knight Frank.

🔍 Have questions about the warehouse market or planning to expand your logistics operations? Get in touch with our expert – we’re here to help you find the right solution.

Natalia Mika
Senior Negotiator
M. +48 735 822 042
E-mail: natalia.mika@pl.knightfrank.com