Real estate / 01.09.2023

Rent of Warehouse in Poland

Poland’s steady and stable economic growth, strong industry, the development of e-commerce and its location in the heart of Europe are just some of the factors contributing to the strong development of the warehouse and industrial property sector in Poland.

Warehouse and industrial real estate sector in Poland

2022 saw a record level of new supply of 4.4 million sqm, putting Poland among the leaders of the warehouse and industrial real estate sector in Europe. Total warehousing and industrial space across the country is approaching 30 million sqm.

The largest regions in Poland in terms of warehouse space are Warsaw (5.8 million sqm), Upper Silesia (4.8 million sqm), Central Poland (4.0 million sqm) Wrocław (3.7 million sqm) and Poznań (3.3 million sqm). Net rental rates per sqm range from EUR 3.3 to as much as EUR 7.5 per sqm.

Warehouse market – key data

Key information about Industrial and warehouse market in Poland (data taken from Newmark Poland):

29,9 million sqm – total stock in Q1 2023
EUR 5.8 billion – investment in commercial real estate across Poland in 2022;
EUR 1.9 billion – investment in logistics and industrial sector in Poland in 2022
75% – 5.50% – prime yields for multi-let warehouses with long leases
4% – vaccancy rate
4,4 million sqm new supply in 2022
1,9 million sqm new supply in Q1 2023
2,1 million sqm under construction in Q1 2023
6,7 million sqm. of warehouse and industrial space (excluding short-term leases) transacted in 2022,
Rent rates (EUR per sqm):
- 5.50-7.50 € Warsaw
- 4.00–6.30 € Warsaw aglomeration
- 3.80-5.50 € Katowice / Upper Silesia)
- 3.30-4.50 € Łódź / Central Poland)
- 4.00-4.20 € Wrocław / Lower Silesia)
- 3.80-4.20 € Poznań
- 3.90-5.50 € Tricity (Gdańsk, Sopot, Gdynia)
- 3.40-4.50 € Szczecin
- 4.50-5.80 € Kraków
- 4.00-5.00 € Rzeszów
- 4.10-4.40 € Lublin.

Renting a warehouse – what to bear in mind:

By far the most common legal form of warehouse use is a lease. A good lease agreement should reflect the commercial arrangements, safeguard the parties to the agreement, but also provide a kind of handbook for the tenant setting out its rights and obligations, how to deal with emergencies, etc.

Most of the investors decide to lease the newly registered company, i.e. after completing the process of company registration in Poland; other decide to conclude the contract via foreign company.

Warehouse lease agreement

Every real estate attorney in Poland would advise that essential elements of a warehouse lease agreement are:

Identification of the lease area for the tenant’s exclusive use and the common parts;
Description of the technical standard of the lease area required by the tenant at the time of delivery of the leased property;
Charges incurred by the tenant:
- Rent – usually set at a rate per m2 of the lease area occupied by the tenant (net lease area) plus tenant’s share of common areas (gross lease area). The rent rate is set in EUR, payable in PLN or EUR. The rent is subject to annual adjustment (if in EUR by the HICP index) or the inflation index published by the Central Statistical Office (GUS)
- Service charges: Usually determined in the form of an advance payment to cover expenses related to the maintenance and management of the property. They include costs such as: property tax, perpetual usufruct fees, building insurance costs, security costs for cleaning, maintenance of green areas and walkways, cleaning of common areas, waste disposal, disinsectisation/ pest control, maintenance of common areas, repairs and maintenance work on gates, doors, electrical installations, ventilation and air conditioning, gas installations, heating installations, fire oil separator, sewage treatment plant, maintenance and cleaning of the retention tank, external lighting, signage, maintenance of telephone cabling, fencing and entrance gates, property management fees;
- Charges for utilities: electricity (kWh), heating (gas, district heating), water, sewerage (mains, septic tank) – billed individually as per sub-meters; in the case of heating, divided according to the Gross Leasable Area;
Determination of terms for rent valorisation and settlement and valorisation of monthly service charge advances;
Lease term: according to the regulations, a commercial lease agreement can be concluded for a maximum period of 30 years. In market practice, warehouses are usually taken out for periods of 24-48 months, and for larger areas or entire facilities for a maximum of 10-15 years;
Lease security. Standard securities include: deposit or bank guarantee, third-party liability insurance and tenant’s property insurance, notary’s declaration of submission to enforcement as to the obligation to deliver the property, surety of the tenant’s parent company or other related entity with high financial credibility;
Terms and procedure for the termination of the lease agreement: It is in the interest of the landlord to stipulate that the agreement may be terminated if the tenant is in material breach of the agreement, such as in arrears in rent or service charges, the use of the premises contrary to the law or the terms of the agreement, making alterations to the leased premises or subleasing them without the landlord’s consent. In turn, the tenant should stipulate in the lease the possibility of early termination in the event that the storage complex or passageways are not properly maintained by the landlord or there are repeated technical failures in the building causing downtime for the tenant’s business. Usually, each party wishes to reserve the right to claim contractual penalties in the event of termination due to the other party’s infringements

Certification of warehouse lease

Important: Immediately after concluding the warehouse lease agreement, a copy of the agreement must be presented to a notary public in order to give it a certified date. This provides the tenant with additional protection in the event that the landlord sells the property. This is because in such a situation, the purchaser of the property, previously issued to the tenant, will not be able to terminate the lease agreement at the statutory notice period.

Warehouse Due diligence:

Before deciding to enter into a lease agreement, a potential tenant should investigate the legal status of the property and the technical condition of the building to ensure that it can be operated safely and efficiently in accordance with the business goals.

The most significant legal issues to be verified by entering into a lease:

The landlord’s legal title to the property; it is not uncommon for the landlord not to be the owner of the property but a related entity managing the property. In such a situation, the tenant’s legal protection is weaker than if an agreement is made with the landlord;
Third-party claims: sometimes the legal status of a property developed with a warehouse is disputed, e.g. due to reported reprivatisation claims or easements in favour of third parties not disclosed in the land and mortgage register. Although the owner is the direct addressee of third-party claims, any disputes over ownership or use of the property may affect the tenant’s rights;
Access to a public road: The leased premises should have legal and actual access to a public road. In larger warehouse complexes, a network of internal roads provides access to individual buildings. It is advisable to clarify their legal status before concluding the agreement;
Land development conditions: This is of particular importance when leasing space in buildings undergoing redevelopment or changing their current functions. The use of the subject of the lease should comply with the provisions of the local spatial development plan or, if there is no such plan, with the zoning decision;
Building permit and use of the building: The use of the object for storage or production purposes should also comply with the building permit and the use permit. If this is not the case, there is a risk of administrative sanctions, including an order to stop the use of the building, failure to comply with which may also result in liability for an offence

Warehouse broker services:

Our law firm works with reputable commercial real estate brokers and provides comprehensive support in the process of searching for a warehouse, due diligence, negotiating the lease and accompanying agreements.

Reach us out, list your conditions and we will come back with offers of our partners.