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New locations on Poland’s warehouse map

After record-breaking 2016, there are still good prospects ahead of Poland’s warehouse market. Regional markets will gain in attractiveness owing to the improving transport infrastructure, availability of investment lands and employees that begin to lack on the most popular markets – according to a report by Colliers International entitled “New locations, new possibilities. Logistic centres vs. labour market”, which was prepared in cooperation with Randstad Poland. The publication also discusses trends on the labour market.

Most of warehouse space is still delivered in Poland’s major agglomerations. However, there is a growing interest among tenants and developers in smaller cities that may soon gain in importance. According to Colliers International experts, warehouse locations with best prospects ahead are as follows: Białystok, Legnica/Bolesławiec, Częstochowa, Kielce, Konin, Lublin, Radom, Rzeszów and Zielona Góra.

Some of the markets discussed in the report, for instance Konin or Legnica, are situated in close vicinity to main communication routes, which adds to their attractiveness. However, there are planned expressways and motorways extensions in all the cities presented in the report, which will facilitate communication in these regions. For example, local authorities plan EUR 40 m worth investments in the development of logistic infrastructure in Białystok by the end of 2018.

Among advantages of the locations discussed in the report are lower wages (even by dozen or so percent) and the availability of manpower that begin to lack in the most popular locations.

“The undeniable advantage of regional markets is a considerable number of working age population, reaching even 200,000 people, which provides a solid base of potential workers with a relatively high unemployment rate and limited competition from other market players. A lower level of salaries is yet another factor in favour of opting for smaller towns," explains Paweł Kopeć, International Account & Bid Manager, Randstad Poland.

A number of experts quoted by Colliers International report underline that the availability of skilled employees and a possibility of cooperation with universities are main factors that decided about opening their businesses in a specific region.

What also contributes to the attractiveness of 9 locations outlined in the report is location in special economic zones, which may be a significant factor for investors when making the decision.

There are already modern warehouses in a few locations presented in the report, for instance, Konin, Lublin or Legnica/Bolesławiec. This confirms that developers see potential in these markets. Nonetheless, there are locations that still lack modern warehouse space, e.g. in Białystok, Radom and Kielce, albeit this could change in time. A development of 17,000 sqm logistics park is planned in close proximity to Kielce. In turn, developers are securing investment lands in other locations, particularly in Białystok and Częstochowa.

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