Developers becoming increasingly interested in smaller towns
Size-wise, the market in Poland is currently the seventh largest in the EU. Despite the recruitment challenges and rising construction costs, the sector is still rapidly growing, and with the development of road infrastructure, new expansion opportunities can be found in locations which have previously been of little interest. Our analysis of the key location selection criteria by manufacturing and logistics companies has shown that, apart from the five major regional markets, cities like Konin and Kielce also do well. The potential, however, applies not only to relatively large cities, but also to well-located smaller towns, such as Kutno and Częstochowa.
Tomasz Mika, Head of Industrial Poland, JLL
Smaller players enter the game
The growing share of smaller Polish cities in the industrial real estate market is a consequence of transport infrastructure development, which in turn encourages large-scale investments. The Big Five will maintain their dominant position, but there are many indications that in the next few years warehouses will start to appear more often than before in smaller cities. Thanks to the decrease in unemployment, especially in the largest cities, smaller centres are gaining an important advantage in the area of a qualified employment pool. The cost of land is also significant, as it is much more attractive than in the case of major metropolitan areas.
Hubert Michalak, Head of Hillwood Poland
The labor market is crucial as always
The unemployment rate is an important factor in attracting investors to smaller cities. The unemployment rate has been historically lower in major cities such as Warsaw, Poznań, Wrocław and the Tri-City. In contrast, unemployment in smaller industrial cities such as Radom and Elbląg, which underwent restructuring processes during the 1990s, have been much higher. Human resources in these centers are characterized not only by large numbers, but also by excellent qualifications. However, due to the lack of jobs, many people have left although they would gladly return if there were interesting job offers.
Marek Wróbel, Commercial Director, ManpowerGroup
Find the balance
In order to make a rational location decision, it is necessary to analyze which of the criteria examined in this publication are the most important for a company's activity. Finding the right balance between transportation costs, availability of labour and rental costs is therefore of crucial importance. With a certain degree of flexibility, taking advantage of the opportunities offered by smaller locations may turn out to be an attractive alternative to the Big Five markets.
Jan Jakub Zombirt, Director, Strategic Consulting, JLL
