Wroclaw: European logistics is centred here. SHEIN and a wave of investment from the Far East

In just the last two years, Shein has launched nine warehouse centers in the agglomeration. For other Asian platforms, this may be a clear signal that Lower Silesia is a proven logistics hub for serving the European market. New investments mean many new jobs.

With a view to attracting new tenants, including the largest e-commerce platforms, investors launched several large projects in the region last year, including speculative projects – without pre-lease agreements, but with the assumption that interested parties and demand would quickly emerge.

Wroclaw is the third largest warehouse market in Poland

As a result of these decisions, 674,550 sq m of modern production and warehouse space will be delivered to the Wroclaw market in 2024.

In the first quarter of this year, another 318,800 sq m were completed. Thus, Wroclaw, with 5,254,400 sq m of warehouse and industrial space, overtook Central Poland (4,941,100 sq m) and became the third largest warehouse market in the country.

Anna Domańska, Associate at Newmark Polska, a consulting company.

E-commerce warehouses ready for tenants

One of the most modern investments to hit the market at the beginning of this year is a 67,550 sq m warehouse built as part of the GLP Wrocław V Logistics Centre. Located just off the S8 route, it has been designed to meet the requirements of modern e-commerce.

One of the important features supporting the logistics processes of this sector is the 12-meter height of the buildings. The facility also features a number of environmentally friendly solutions – all tenants have access to a smart metering system that allows individual monitoring of media consumption.

Among the most interesting investments available for lease is the modern EQT Exeter Park Wrocław South III complex, consisting of two halls with a total area of 50,600 sq m. The facility is located in Bielany Wrocławskie, right next to the A4 motorway.

Since the beginning of 2024, three new halls in the P3 Wrocław project and investments in another hall as part of Panattoni Park Wrocław Logistics South and ECE Kąty Wrocławskie have also entered the Lower Silesian market.

SHEIN, a fashion e-commerce giant from Singapore, is investing near Wroclaw

The largest number of new warehouses were completed in Kąty Wrocławskie and Magnice, where the largest number of investments are also under construction. This is where SHEIN, an e-commerce giant from Singapore, is investing, leasing huge warehouses and creating over 3,000 new jobs. The Singapore-based company, which sells fashion products in its online store, describes its business involvement in the Wroclaw area as strategic and announces further development.

Wroclaw's logistical advantage is growing. An excellent location for the development of the e-commerce sector

Anna Domańska believes that the arrival of such a large player as Shein on the Wroclaw market has certainly not escaped the attention of competitors, who are eager to enter proven locations using ready-made solutions.

“At the same time, our experience shows that companies in this sector make quick decisions and expect immediate access to warehouse space. In this context, developers' decisions to build speculative projects may prove to be a very good strategy, which will bring the expected results in the long term,” says Anna Domańska.

Despite the slowdown in e-commerce growth in Poland compared to 2020-2023, the forecasts remain optimistic. According to a PwC report, by 2028, the online retail market should reach PLN 192 billion, with an average annual growth rate of 8%.

The expert emphasizes that Wroclaw has long been an excellent location for the development of the e-commerce sector. "The region offers access to the A4 and A8 motorways, the S8 expressway, an extensive distribution network, and a strong labor pool, which are key elements for operations related to online order fulfillment. Another huge advantage of the capital of Lower Silesia, sometimes referred to as the second Silicon Valley, is the strong presence of IT and new technology companies that can serve as operational support for global platforms," Domańska points out.

What is the interest in warehouses in Lower Silesia?

Tenants' interest in warehouse space in Lower Silesia remains stable. In the first quarter of this year, demand in the region amounted to 113,600 sq m, which is similar to the average for the same periods in the last five years.

Tenants were most interested in locations in Nowa Wieś Wrocławska (19% of demand), Magnice (14%), Bielany Wroclawskie (10%), Wroclaw (9%) and Wojtkowice (8.5%). These five locations accounted for nearly 60% of total demand in the last four quarters.

“It is also worth noting that since 2021, the average annual demand in Lower Silesia has exceeded 900,000 sq m, whereas previously we were talking about levels of around half a million. This is proof of the rapid development of the modern warehouse market in the region,” comments Anna Domańska.

Among the largest transactions since the beginning of 2024, the expert mentions the contract signed by a tenant from the e-commerce sector (126,000 sq m) in Panattoni Park Wroclaw Logistics South Hub, the renewal of the contract by LX Pantos (98,700 sq m) at Prime Logistics Wroclaw in Pietrzykowice and a new contract with a fashion company (56,200 sq m) at Panattoni Park Legnica.

“The warehouse market in Lower Silesia has several strong pillars on the demand side. Last year, apart from the e-commerce sector, the most active tenants were those from the 3PL industry related to online trade, as well as from the traditional trade sector. The automotive industry remains an important, though recently less active player due to the slowdown in the German economy,” says Anna Domańska.

After a record boom, tenants have plenty to choose from

Despite stable tenant interest, the pace of new investment in the region has slowed significantly. Developers, responding to the growing vacancy rate, which at the end of the first quarter stood at 11.6 percent – the highest level since 2012 – have curtailed their activity and focused on commercializing existing space.

As a result, just over 36,000 sq m of warehouse space is currently under construction in the region. One of the investments underway is the expansion of Panattoni's largest park in Lower Silesia – Wroclaw Campus 2. Another 25,000 sq m of modern warehouse space is under construction, all of which remains available to future tenants.

The high level of available warehouses also translates into greater negotiating flexibility among owners. The average asking rent in the region is currently EUR 4.20–4.40 per sq m, and in the case of older facilities, it may fall to around EUR 3.80. Urban spaces are achieving rates of around EUR 5, which remains an attractive and stable level for business development.

“High availability of space is not a negative sign for the market in this case. It is a natural phase of adjustment after years of intensive growth. Between 2019 and 2025, almost 3.4 million sq m of new space was delivered in Lower Silesia, which is as much as 65% of the total current stock,” says Anna Domańska.

Currently, the difference between Wroclaw and the second largest region, Upper Silesia, is just over 600,000 sq m, and between Wroclaw and the market leader, Warsaw, it is 1.8 million sq m.

“After a period of very intensive development, during which we witnessed record levels of activity from both tenants and developers, the Wrocław market is entering a phase of stabilization, creating space for the next wave of demand. Importantly, tenants now have a wide choice of locations, making Lower Silesia an exceptionally attractive market from their perspective,” concludes Anna Domańska.