Warehouses back in investors’ focus

 

Consistent interest rate cuts by the European Central Bank and Poland’s Monetary Policy Council act as a catalyst for new investments. According to Bartłomiej Zagrodnik, CEO of Walter Herz, cheaper capital improves project profitability and enhances the competitiveness of industrial and logistics real estate as an asset class.

In Poland, the growing interest in warehouses and logistics/production assets is particularly evident. Capitalization rates for this type of property currently stand at 6.25–6.50%, making them an attractive option for both local and international investors.

 

Capital seeks stability and growth potential

 

Investors are focusing on projects that offer both stable income and value appreciation. Assets with potential for redevelopment, repositioning, or functional transformation are in high demand. The industrial sector meets these criteria, which is why it is experiencing increasing transactional activity.

Although the first half of 2025 saw fewer large deals, the growth dynamics in Q2 suggest that the market is on a recovery path. Lower interest rates are expected to soon translate into higher-value transactions and greater engagement from institutional investors, who have so far remained cautious.

 

CEE and local capital drive the market

 

In Poland, investors from the CEE region now account for nearly 40% of total acquisitions. US capital holds a strong share at 30%, while Western European investors represent 20%. Local capital is also playing an increasingly important role – in H1 2025, domestic investors were responsible for over 14% of the total investment volume.

 

Outlook for the second half of 2025

 

All indicators suggest that the second half of the year will bring further revival in the industrial real estate sector. Lower financing costs are narrowing the gap between buyer and seller expectations, facilitating the closing of larger transactions. At the same time, they create better conditions for the development of new projects, which – despite ongoing geopolitical tensions – may regain momentum.

“Following interest rate cuts, capital will increasingly seek alternatives to low-yield bonds and deposits. Real estate, particularly warehouses, is regaining its strong investment position,”summarizes Bartłomiej Zagrodnik of Walter Herz.

 

source: prestigepr.pl