Wroclaw industrial and logistics real estate market

Region overview - warehouse market

The Wroclaw region is considered one of the most attractive industrial and logistics markets in Poland and Eastern Europe. Its popularity can be attributed to its convenient location, which offers easy road access to the rest of the country, as well to the Germany and the Czech Republic. The region is equipped with a well-connected transportation network, including the A4 and A8 motorways, the S8 and S5 expressways, and an international airport.  

The Wroclaw region warehouse market keeps growing in the sustainable solutions aspect. It can be seen, for example, in 7R Park Wroclaw West II. The warehouse, developed in the second quarter of 2024, incorporates cutting-edge technologies that effectively decrease CO2 emissions by 50%. Another example of the modern sustainable industrial space is Panattoni Park Wroclaw Logistics South Hub, which was expanded and put into use in the first quarter of 2024. A variety of modern technologies was used during the construction of the park, reducing emissions and meeting market standards for sustainable construction. With the Wroclaw region being one of the representatives on the industrial and logistics markets in Poland, an increasing number of developers are prioritizing the environmental aspects of their new projects.

Developers activity and new Wroclaw real estate projects 

Industrial developers delivered 150,700 sqm of new space in the region during the second quarter of 2024 and 218,300 sqm in the first quarter. The largest completion in the region in Q2 2024 was Hillwood LCube Wroclaw East, with 59,300 sqm of modern warehouse space delivered. Additionally, two more projects were completed in Q2 - Panattoni Park Boleslawiec Modlowa with 49,500 sqm and 7R Park Wroclaw West II with 41,900 sqm. 

Wroclaw industrial and logistics real estate market has grown by 12% in a year (since the end of Q2 2023 up until Q2 2024). Currently 568,200 sqm of modern warehouse space is under construction. 38% of this space (approximately 216,300 sqm) is not secured by pre-lease agreements and will be ready within the next few months. Developers exhibit a more cautious approach these days and rather don’t begin new constructions until a substantial pre-lease in a project is secured. At the same time the demand for modern warehouse space remains relatively high. One new development was started in Q2 2024 – next phase of Panattoni Park Wroclaw Logistics South Hub offering 35,000 sqm of modern warehouse space.

Rents - Wroclaw real estate market

Headline rents remained relatively stable in the last quarters after a large increase in 2022 and are expected to stay at the similar levels in coming months. Currently, prime headline rents in the region are recorded within the range of 4.20 – 5.40 EUR / sqm/ month.

Leasing activity and vacancy rate Wroclaw

Vacancy rate in the Wroclaw region was at an average level of 9.40% at the end of H1 2024, and in a year-to-year perspective increased by 1.6 percentage point. The vacancy rate in the Wroclaw region is slightly higher than the average rate in Poland at the end of H1 2024 - 8.29%. 

The availability of vacant space is higher compared to the previous years, as the Wroclaw region experienced a large increase of the supply in the first half of 2024 - 369,000 sqm which has not been yet entirely absorbed by the market. 

Tenants’ interest in industrial and logistics space in H1 2024 in the Wroclaw region was the highest amongst other regions in Poland.