Tailor Your Business in Lodz 2023

WAREHOUSE MARKET IN CENTRAL POLAND ŁÓDŹ REGION IN COMPARISON TO POLAND

4 326 000 518 000 330 000 377 000 3,60-4,80 7,6%

30 662 000 4 603 000 2 064 000

Stock (sq m) Supply (sq m) last 12 months Vacancy (sq m) Vacancy rate (%)

POLAND

ŁÓDZKIE

6,7%

Under construction (sq m) Headline rents (BIG-BOX) (Eur/sq m/month)

2 111 000 3,60-6,95

A t the end of June 2023, total warehouse and industrial stock in Central Poland stood at 4.33 million sq m, up by 14% year-on-year. The Łódź province has for long been the third-largest regional market in Poland, behind Silesia (5.27 million sq m; +16% y/y) and Mazovia (6.27 million sq m; +13% y/y), but ahead of Lower Silesia (4.04 million sq m; +20% y/y) and Greater Poland (3.35 million sq m; +23% y/y). The Łódź province has for years seen strong demand for warehouse space coming from established companies choosing to expand there and from newcomers from such sectors as logistics, retail, e-commerce, home appliances, electronics, packaging and fashion. Key tenants include well-known Polish and international brands such as Zalando, Amazon, Leroy Merlin, Smyk, Agata Meble, Castorama, Carrefour, Media Expert, OBI, Oponeo, B/S/H, Ontex, Corning, Kellogg’s, Whirlpool, Sonoco, K-Flex, InPost, Arvato, Kuehne+Nagel, Spedimex, and Rohlig Suus. The warehouse and industrial stock in Central Poland is dominated by big-box projects. The average usable area of such schemes exceeds 30,000 sq m, with the smallest warehouse units for lease starting from around 2,000-3,000 sq m. Also popular in the region are BTS (Built-To-Suit) projects that are designed to meet individual occupier requirements. The largest BTS projects range from more than 50,000 sq m to 130,000 sq m, with many serving as central warehouses intended for distribution of goods to domestic and international markets. Some are developed for manufacturing or special purposes such as returns centres, cross-dock warehouses and courier hubs enabling swift handling of goods. Smaller urban logistics projects - dubbed City Flex or City Logistics by some developers - have grown in popularity in recent years. Most are located in the central zone of the Łódź Conurbation, in Łódź or in its immediate vicinity, with the average size of such buildings being approximately 10,000 sq m. Warehouse units for lease in such projects start from around 1,000 sq m. Small urban warehouses attract strong interest from such sectors as light manufacturing, FMCG, logistics, courier services, printing and pharmaceutical. In contrast to, for instance, the Warsaw market, the smallest warehouse and office projects offering modern SBUs (Small Business Units) starting from around 400 sq m account for a small proportion of the region’s total stock. This is due to the fact that demand for class A warehouse space in the Łódź market centres on buildings starting from approximately 2,000 sq m, while occupiers looking for the smallest warehouse units tend to target class B facilities. Key developers that have been active in Central Poland for years include Panattoni Europe, 7R SA, Hillwood, Prologis, P3 Logistics Park, SEGRO, GLP, Logicor and MLP Group. Other investors who have acquired development plots or launched projects in the region include CTP, MDC2, White Star and Mountpark.

TAILOR YOUR BUSINESS IN ŁODŹ | PUBLICATION BY CUSHMAN & WAKEFIELD

WAREHOUSE STOCK ON REGIONAL MARKETS

Vacancies

Leased space

Vacancy rate

7,000,000

14%

6,000,000

12%

5,000,000

10%

4,000,000

8%

3,000,000

6%

sq m

2,000,000

4%

1,000,000

2%

0

0%

Silesia

Łódzkie

Lubusz

Masovia

Opolskie Warmia-Masuria

Lubelskie

Podlaskie

Pomerania

Subcarpathia

Lower Silesian

Lesser Poland

Świętokrzyskie

Greater Poland

West Pomerania

Kuyavia-Pomerania

Source: Cushman & Wakefield

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