GLP Cracow III Logistics Centre

The warehouse market around Krakow (South Poland) has for years been one of the regions that have a low volume of space ready for immediate rent. Despite the total stock of over 1 million sq m, the vacancy rate in the region is approximately 2.1%. Warehouse developers, looking for investment land, decided to develop towards the east. In recent years, locations such as Niepołomice, Tarnów, Bochnia, and Kokotów have gained importance.

In the period from January to September 2023, as part of the new supply, developers delivered 129,000 sq m in the Lesser Poland Voivodeship. In the region, the offer of ready-made warehouse halls has been prepared by, among others: Panattoni, 7R, GLP, Hillwood, and more local entities such as LCube, and BIK. The biggest challenge for developers remains the terrain, which increases the costs associated with starting the construction of the investment and also affects the initial rental rates. Outside the capital of Lesser Poland, new logistics parks and distribution centers are being built in Skawina, Modlniczka, Rybitwy, Targowisko, and Wieliczka. Currently, over 166,000 sq m are under construction. The Lesser Poland Voivodeship is a region where tenants can choose from a diverse offer of warehouse space in the following formats: big-box, SBU (small business unit), and BTO (built-to-own), and BTS (built-to-suit) projects. Due to the development of the last mile logistics segment, modules are available in Krakow and the surrounding area as part of smaller urban investments, such as Panattoni City Logistics and 7R City Flex. Gross demand in the period January - September amounted to nearly 200,000 sq m.

The most active tenant groups include logisticians, manufacturing companies, clothing companies, retail chains, furniture/DIY industry, light production, and automotive industry. The main advantage of the region is access to the A4 motorway and the S7 Expressway. As a result of the development of infra