Growth potential of the warehousing industry

The warehouse industry’s winning streak has been going strong for several years now. It is one of the few sectors of the economy that was not slowed down by the outbreak of the pandemic. On the contrary—the rise in popularity of e-commerce solutions and the growing demand for logistics services have further bolstered it, and the industry has continued to break new records. As a result, the size of Poland’s warehouse infrastructure has doubled over the past few years. Does the market still have the potential for further growth?

The second challenge facing the warehouse industry—perhaps an even greater one than the pandemic—is the war in Ukraine, which has been ongoing since February 2022. The collapse of supply chains and limited availability of raw materials and goods are having a significant impact on demand, supply, and investment volumes in the warehouse and logistics real estate sector. Added to this are galloping inflation, unstable exchange rates, and increases in interest rates and energy prices… We discussed the challenges facing this segment of the market in our report“The Polish Logistics and Industrial Sector.”

The pandemic has significantly changed consumer behavior. Today, an increasing number of shoppers say they prioritize fast delivery times for products ordered online—ideally, within a few hours. To achieve this, it is essential to optimize the supply chain, particularly last-mile delivery. Proper management of these issues also allows companies to mitigate the risk of certain goods becoming unavailable on the market. As a result—in addition to large logistics parks—the network of urban warehouses is growing rapidly; at 7R, we develop these under the name 7R City Flex. These are facilities located within city limits, with excellent connections to the city center and easy access to transportation hubs. Often, in addition to the warehouse space, we also develop office facilities within these types of buildings.

One example of such a solution is 7R City Flex II, where Frisco.pl, among others, operates its business. The brand, which delivers its products to over 120,000 households, has leased more than 3,500 sq m of certified warehouse and office space from 7R, enabling it to effectively manage deliveries to customers in the Tri-City area.

The popularity of build-to-suit facilities—warehouses designed to meet the tenant’s specific requirements and often equipped with automated solutions tailored to the business’s unique needs—is also on the rise. As Piotr Miodek, Head of BTS at 7R, said in an interview with WNP.pl:

Green Business

The industry’s dynamic growth is leading developers to adopt an increasingly responsible approach to business. A growing awareness of environmental issues is evident among both investors and tenants. Green initiatives are not only about caring for the planet, but also about optimizing business operations. Sensible energy management allows companies to achieve real savings in their budgets. That is why, among differentiators such as innovation and technology, environmental sustainability is taking on an increasingly important role. This approach is also evident at 7R and forms the foundation of the company’s brand development plans.

These principles are reflected in the strategy adopted for 2022–2025. It emphasizes a strong commitment to sustainable development, including the pursuit of climate neutrality, support for local communities and employee development, and adherence to established corporate governance standards. In practice, this means concrete actions by the company that benefit the environment, customers, employees, and neighbors.

These principles are gradually being translated into practical solutions that reduce energy consumption and carbon dioxide emissions, while also protecting biodiversity. Solar panels, improved wall and roof insulation, LED lighting, and an energy management system are just a few examples of the tools used in warehouses to minimize the carbon footprint and support tenants in achieving climate neutrality. Another element of the company’s strategy is community-focused initiatives aimed at local communities, including building and repairing roads and supporting young athletes and artists. Our ESG practices are further complemented by adherence to corporate governance policies and procedures; therefore, we operate in accordance with the Code of Good Practice, ensuring the ethical conduct of our business.