Industrial real estate market in Eastern Europe – Malgorzata Czepel, Director Industrial & Logistics at CBRE Poland

1. Market Overview & Trends

How would you describe the current situation on the industrial real estate market in Poland and Eastern Europe?

After a very challenging 2024 and a slow first half of 2025, I can see clear improvement on the Polish industrial real estate market. The trend which started end of last year, has bursted out with the beginning of 2026. While the statistics do not yet fully reflect this, we are receiving many more requirements from potential clients. Importantly, these requirements are not only for smaller spaces, as was the case through nearly one and a half year, but also for large units of 30,000–40,000 square meters, and in few cases 100+. This indicates renewed confidence from investors.  

Roughly 90% of these inquiries come from foreign companies across different sectors, which highlights Poland’s continued attractiveness. I also see a change in developers’ behaviour: after years of caution, nearly 40% of new projects in Q4 of last year have started speculatively. For me, this shows that developers trust demand will absorb the current vacancy. The overall market recovery may not be very fast, but I feel cautiously optimistic. The signs of stabilization are visible, and I expect more deals to be signed in the following months. 

What overarching trends are currently shaping demand for industrial and logistics space?

In my opinion, the most important driver today is the need to serve European customers more efficiently. International companies, especially from China and the US, increasingly realize that it is better to produce inside Europe rather than ship from overseas. They save logistics costs, shorten delivery times, and stay closer to their markets. For European firms, the motivation is often cost optimization – labour costs and incentives in Poland remain attractive, even though salaries have risen in recent years.  

I also see strong sectoral trends. The automotive industry remains very active in Silesia. Renewable energy, particularly wind power and its suppliers, has become a fast-growing cluster in northern and western Poland. Another trend, shaped by geopolitics, is the growing demand from defence-related companies, which I believe will continue. E-commerce also plays a major role, mostly driven by Chinese companies seeking for large space with short delivery timeline. We need to also remember about regions close to Ukraine, where companies are supplying goods despite the ongoing conflict. Altogether, demand is driven by a mix of supply-chain optimization, cost savings, and sector-specific developments, making the Polish market dynamic and diverse. 

In which Eastern European countries – and in particular in which regions of Poland – do you currently see the strongest momentum in new business locations?

Poland is clearly the leader, but in almost every project we compete with Romania, Hungary, and Slovakia. Romania in particular has grown strongly and often wins projects that Poland does not.  

Within Poland, I see different dynamics. The south, especially Silesia, remains a hotspot for automotive and heavy manufacturing. The Szczecin region has become very strong, driven mainly by Scandinavian companies active in renewable energy. For me, it is one of the real star markets right now. In eastern Poland, Lublin and its surroundings attract investors linked to Ukraine, both in production and logistics. Overall, I always emphasize to clients that Poland offers both established hubs such as Warsaw, Upper Silesia, and Wrocław, as well as promising emerging regions like Szczecin, Lublin, and Bydgoszcz. This combination of mature and rising locations is a unique strength of the Polish market.

2. Location Factors for Manufacturing Companies 

In your opinion, what criteria are crucial for manufacturing companies when choosing a location in Poland and Eastern Europe?

From my experience, companies always evaluate several criteria together. Labour cost is a major factor, but it is not the only one. For production companies, utilities are absolutely decisive. Without sufficient electricity, gas, or water, a location is not even an option. in many cases the availability of power supply determined whether Poland or another country won the project. Permitting is also crucial. In Poland, obtaining a standard environmental decision takes around six months, but when emissions or more complex processes are involved, it can take 9–15 months. This often becomes the bottleneck. Another factor is logistics—transport costs have risen worldwide, so proximity to suppliers and customers is increasingly important.  

When I advise clients, I always prepare analyses combining all these factors. Many investors start with a “preferred” country in mind but change direction once the analysis is complete. For me, the decisive elements are always labour, utilities, permitting, and logistics – and the optimal choice emerges from their interaction. 

What role do the real estate supply, infrastructure, and energy supply play in location decisions?

Energy and infrastructure are key. If a site cannot provide enough power,  gas or water (depending on kind of business), it cannot serve heavy production. Real estate supply plays a different role. For light manufacturing, adapting existing space is often possible, especially since Poland currently has around 8% vacancy in A-class space. But for heavy or very specific manufacturing processes, existing units rarely fit requirements. In such cases, build-to-suit or build-to-own projects are the solution.  

Here, I see a real strength of Poland: our developers are experienced and flexible. They operate not only in core markets like Warsaw or Wrocław but also in emerging regions, sometimes even developing the first modern building in a new location if a client requires it. This gives investors choices they might not have in other countries. So, while infrastructure and utilities define feasibility, Poland’s wide supply of real estate options ensures flexibility and adaptability, which in practice is a strong competitive advantage. 

Which countries in the world do the investing companies primarily come from, apart from the DACH region?

Besides Germany, Austria, and Switzerland, I mainly see investors from three groups. First, companies from the US and China, who want to build production capacity inside Europe. For them, Poland is a cost-efficient and well-located entry point. Second, Scandinavian companies, particularly in the Szczecin region, where wind energy is driving significant investments. This is a very clear trend. Third, Ukrainian companies and international firms considering eastern Poland as a base for reconstruction in Ukraine. While these projects are not yet finalized, I receive inquiries and requests for analysis that clearly point in this direction.  

From my perspective, this combination shows Poland’s role as a bridge: we are attractive both for global corporations optimizing supply chains and for regional players with specific market goals. That diversity of origins makes our market resilient and dynamic. 

3. Availability & Costs

What is the current availability of suitable space and new construction projects for the manufacturing industry?

At the moment, availability is relatively high. Vacancy rates in modern A-class industrial buildings are around 10% in some regions, which is unusual for Poland. Developers continue to build, with many projects under construction, because they expect this vacancy will be absorbed.  

For manufacturing companies, the decision is always between adapting existing space or starting a new development. What surprises many clients is that adaptation is not always cheaper—especially if heavy utilities are required. In some cases, it is more economical to build a new facility than to adjust an existing one. That is why build-to-suit remains very popular. I always run detailed comparisons with clients to make sure they choose the option that fits both technically and financially. Thanks to the size of our market, we can offer flexibility: space in established hubs or entirely new developments in emerging regions. Overall, I consider availability good, and competition among developers works to the benefit of investors. 

How are rental and construction costs for industrial real estate in Poland developing compared to Western Europe?

Construction costs increased significantly after the outbreak of the war in Ukraine, mainly due to higher material and energy prices. However, they have since stabilized, which gives investors predictability and still are lower than in Western Europe. Rental prices also jumped in 2022, but now I see stability, with attractive levels in many regions because of the current vacancy. Of course, rents differ strongly by location. In Warsaw or Kraków, land is expensive and supply is limited, so prices are higher. In less saturated regions, we still see effective rents around 3 EUR per square meter (depending on size and length of lease).  

This flexibility makes Poland highly competitive compared to Western Europe. In Germany, the Netherlands, or France, investors face considerably higher rents for comparable quality. Developers in Poland are also more open to negotiations now, offering flexible lease terms and incentives.

4. Funding & Regulation

Which government funding programs or subsidies are relevant for investors and tenants of manufacturing properties?

The most relevant programs are operated by the Polish Investment and Trade Agency (PAIH) and the Special Economic Zones. They provide corporate income tax relief and other incentives. What makes Poland stand out is not only the level of support but also the way it is delivered. Every investor is assigned a dedicated contact person who explains eligibility criteria – such as required investment amounts or job creation – and guides them step by step. This makes the process predictable and transparent, which many of my clients appreciate compared to less structured systems in other countries.  

There are also additional programs focused on innovation and R&D, which are important for companies with advanced manufacturing. From my perspective, these incentives play a key role in making Poland competitive. They often tip the balance in our favour when we compete with countries like Romania or Hungary. It is not just about money; it is about reliability and professional support throughout the process. 

Which regulatory frameworks are particularly important for investors and manufacturing companies in Poland?

The two key approvals are the environmental decision and the building permit. The environmental decision is usually the most time-sensitive. For standard projects it takes around six months, but if emissions or more complex processes are involved, the timeline can stretch to 9-15 months. The building permit is more predictable and, if documentation is correct, should be issued within 65 days. After construction, the occupancy permit is required before operations can start, although early access is often granted for installing equipment. Depending on the production type, additional permits may be needed, for example water permits or integrated permits for complex processes. From my experience, the system is transparent, but careful planning is essential. Companies relocating existing production must pay particular attention to timelines, as phased installation of machinery requires precise coordination with the permitting process. My role is to help clients navigate these steps early, so they avoid unexpected delays later. 

5. Sustainability & Future Issues

What role do sustainability aspects (e.g., Green Factory, ESG criteria) play in new construction projects in Poland?

Sustainability has become a standard requirement. Today, practically all new developments in Poland are certified—usually with BREEAM at “Very Good” or “Excellent” levels. International companies demand this as part of their ESG strategies, but I also see growing awareness among medium-sized firms.  

The interesting thing is that developers do not wait for tenants to request certification anymore. They have made it standard, because they know that without it, a building will not be competitive. In practice, this means that new projects are equipped with photovoltaic-ready roofs, EV charging stations, LED lighting, and grey water systems. Biodiversity features such as green areas or even bee shelters are common. These measures are not only good for the environment—they also reduce operating costs, for example through energy-efficient heating. Owners of older buildings are also investing in retrofits to remain competitive.  

6. Perspective of German Companies

What typical questions or reservations do German companies have when considering a production site in Poland?

I really enjoy working with German companies because their processes are always very well prepared. They know what they want and their questions are detailed, which makes the collaboration efficient. The most common concerns relate to the availability of labor and rising wages. Although salaries in Poland have risen, they are still competitive compared to Western Europe.

Another point is the stability of the workforce. Here I always emphasize the high work ethic of Polish employees. Once they have been trained, they tend to stay with their employer for a long time, which reduces staff turnover and training costs.

German customers also analyze approval deadlines very carefully. They want predictability and we provide them with realistic timelines from the outset. Incentives are another common theme: companies want to understand the process and how PAIH and the Special Economic Zones can support them. In summary, their concerns are pragmatic and can be resolved with data, references and transparency.

What advice would you give to German manufacturing companies considering entering the Polish market?

My advice is, first, to involve professional advisors early. The Polish market offers many opportunities, but each production profile requires specific solutions regarding utilities, incentives, and labour. Early analysis helps avoid costly delays.  

Second, I recommend being open to the solutions offered by developers. While ownership is common in Germany, leasing through a build-to-suit is often faster, safer, and more flexible in Poland. It shifts risk to the developer and ensures the building meets modern standards.  

Third, I advise German companies to verify Poland’s support possibilities which combining with other conditions of the market might make Poland more attractive than competing countries. PAIH and the Special Economic Zones provide transparent and reliable guidance through the incentive process, which many investors underestimate Finally, I would stress that Poland combines cost advantages with a loyal and skilled workforce. For me, it is one of the best choices for German mid-sized manufacturers looking to expand abroad. With the right preparation, entry into the Polish market can be a very successful step.