The growth potential of the warehouse industry

The warehouse industry has been on a growth streak for several years. It is one of the few sectors of the economy that has not been slowed down by the pandemic. On the contrary, the growing popularity of e-commerce solutions and the increasing demand for logistics services have further strengthened the industry, leading it to break its own records. As a result, the size of warehouse facilities in Poland has doubled in recent years. Does the market still have potential for further growth?

The second, perhaps even greater, challenge facing the warehouse industry in the wake of the pandemic is the war in Ukraine, which has been ongoing since February 2022. The collapse of supply chains and the limited availability of raw materials and goods are impacting 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“Polish Logistics and Industrial Sector.”

More city warehouses and BTSs

The pandemic has significantly changed consumer behavior. Currently, more and more buyers say they care about short delivery times for products ordered online—preferably measured in hours. To achieve this, it is necessary to optimize the supply chain, especially last-mile transport. Proper management of these issues also allows companies to reduce the risk caused by the unavailability of certain goods on the market. As a result—in addition to large logistics parks—the network of urban warehouses, which we develop at 7R under the name 7R City Flex, is growing at an ever-increasing pace. These facilities are located within cities, offering excellent connectivity to the city center and easy access to transportation hubs. Often, in addition to the warehouse space, we also incorporate office facilities within these types of buildings.

One example of such a solution is the 7R City Flex II, where business operations are carried out by, among others, the Frisco.pl store. The brand, which delivers its products to over 120,000 households, has leased over 3,500 square meters of certified warehouse and office space, enabling it to effectively manage deliveries to customers in the Tri-City.

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

Green business

The rapid growth of the industry means that developers are taking a more responsible approach to business. There is a growing awareness of environmental issues, both among investors and tenants. Green initiatives are not only about caring for the planet, but also about optimizing business operations. Efficient energy management enables companies to achieve real cost savings. That is why sustainability is becoming an increasingly important factor alongside other distinguishing features such as innovation and technology. This approach is also evident at 7R and forms the foundation of the brand’s development plans.

These assumptions are confirmed by the ESG strategy adopted for the years 2022–2025. It places particular emphasis on sustainable development, including the pursuit of climate neutrality, support for local communities and employee development, and adherence to established corporate governance principles. In practice, this translates into concrete actions by the company designed to benefit the environment, customers, employees, and the local community.

These assumptions are gradually transformed into practical solutions that reduce energy consumption and carbon dioxide emissions, as well as protect biodiversity. Photovoltaic panels, improved wall and roof insulation, LED lighting, and energy management systems are just a few examples of tools used in warehouses to minimize the carbon footprint and help tenants achieve climate neutrality. Another element of the company’s strategy is community-focused initiatives aimed at local communities, including building and repairing roads or supporting young athletes and artists. Our ESG practices are complemented by adherence to corporate governance policies and procedures, which is why we operate, among other things, in accordance with the Code of Good Practice, ensuring the ethical conduct of our business.