Industrial-Logistics market on Vistula unmatched in CEE

The Central and Eastern European (CEE-13) industrial-logistics market, led by Poland, is a standout in the region. According to Colliers' recent report, "ExCEEding Borders: Navigating the Industrial Landscape and Workforce in CEE-13," the total supply of modern industrial-logistics space across CEE-13 exceeds 67 million square meters, with Poland alone accounting for over 31 million square meters, or 45% of the total. This makes Poland the largest market in the region.

Despite varying vacancy rates among CEE-13 countries, demand for industrial-logistics space has remained high, with Poland showing the highest gross demand in 2023 at 5.7 million square meters. This demand is driven by sectors such as freight forwarding, retail, and distribution. However, there was a noted decline in demand and construction in 2023 due to economic and geopolitical factors. Nonetheless, Poland's market remains strong, bolstered by a skilled, cost-effective workforce and low rental rates for industrial space compared to Western Europe.

Investors continue to show significant interest in the industrial-logistics sector, with warehouses comprising about 50% of Poland's investment volume by the end of 2023. Investment strategies include land acquisition, single assets, large portfolios, and sale-and-leaseback agreements.

CEE-6 countries lead in implementing green building solutions, with many properties achieving high-level certifications like BREEAM and LEED. Sustainability initiatives cover a significant portion of the modern industrial-logistics space, making CEE-6 the most advanced group in the CEE-13 regarding ESG compliance.

In the labor market, the CEE-6 group has seen notable wage increases, driven by nearshoring and automation trends, despite differing wage levels across CEE-13 countries. This has spurred growth in manufacturing and logistics sectors, increasing the demand for skilled personnel and encouraging regional expansion.

(Colliers)