Tailor Your Business in Lodz 2023

WAREHOUSE MARKET IN CENTRAL POLAND ŁÓDŹ REGION IN COMPARISON TO POLAND

TWO DECADES OF GROWTH OF THE ŁÓDŹ INDUSTRIAL MARKET T he Łódź industrial market has seen several periods of growth marked by changing supply dynamics. Supply fluctuations have been quite significant and resulted from both external economic conditions and the specific demand in Central Poland, where a relatively small number of large warehouse leases accounts for a substantial proportion of take-up. The average size of new leases made in this market in the last six years was 12,200 sq m, well above that for the other Big Five regional markets, i.e. Mazovia (4,400 sq m), Silesia (8,100 sq m), Lower Silesia (8,500 sq m) and Greater Poland (7,900 sq m). Demand for large logistics and industrial facilities in the Łódź province is positive for investors, but during periods of economic downturn this may result in greater fluctuations than, for instance, in Silesia or the Warsaw region, where a lack of larger leases tends to be compensated by small and medium-sized transactions. Development timeline of the warehouse market in the Łódź Province “2004-2023” 2004-2009 : The first period of fast-paced growth following Poland’s accession to the European Union, an increase in the country’s social and economic potential and an inflow of foreign investment. 2005-2009 saw 760,000 sq m of warehouse space delivered in Łódź, Stryków and Piotrków Trybunalski. 2010-2014 : New supply falls to 300,000 sq m in the aftermath of the global financial and economic crisis. Poland sees an increase in its transport potential as it hosts the 2012 European Football Championship and completes key motorways and expressways. The Łódź province gains a motorway link to Warsaw and Germany, and regular Łódź-Chengdu train connections as part of the development of the New Silk Road project, one of the key trade routes between the EU and China. 2015-2017 : A marked increase in demand for warehouse and industrial space throughout Poland driven by an economic boom and the accelerating growth of e-commerce. Approximately 500,000 sq m of new space comes on stream in 2016-2017 amid record demand levels and vacancy rates falling to close to zero in late 2017. In 2017, Panattoni launches its flagship project Central European Logistics Hub (CEL HUB) near Jędrzejowska Street in Łódź – the largest logistics complex in Poland and one of the biggest in Central and Eastern Europe, consisting of about a dozen large buildings with a combined area of approximately 600,000 sq m. The complex is leased to more than 20 companies from such sectors as retail, e-commerce, logistics, manufacturing and home appliances. 2018-2020 : New warehouse supply hits a record 1.4 million sq m. Łódź and its immediate environs attract mainly tenants favouring urban locations on account of access to skilled labour and work underway on the construction of Łódź’s ring road. Meanwhile, Central Poland’s industrial stock becomes more geographically diversified, with construction activity slowing in Stryków and Piotrków Trybunalski and heightened interest in less obvious locations such as Kutno, Piątek and Koluszki, spurred on by the forthcoming completion of the entire A1 motorway.

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