The European commercial real estate market is experiencing a significant pivot. Gone are the days of unbridled optimism and speculative, fast-paced transactions. Today, investors are adopting a more mature, cautious, and highly selective approach, with capital increasingly flowing towards assets that promise quality, long-term stability, and predictable returns.

 

The New Investment Paradigm: Quality Over Risk

 

The sentiment from major industry events like Expo Real 2025 reveals a clear shift: while capital is abundant, investors are prioritizing meticulous analysis over opportunistic pursuits. The focus has sharpened on the fundamental value of assets, emphasizing long-term security and sustainable profits. This trend signifies a market entering a phase of mature selection, where due diligence and strategic foresight are paramount.

 

According to Bartłomiej Zagrodnik, Managing Partner, CEO at Walter Herz, "The time for unconstrained optimism in the European investment market has passed. It has been replaced by mature, prudent, and highly selective demand for real estate. The sector is returning to fundamentals and focusing on quality, moving away from speculative opportunity-seeking. The long-term value of assets and safe, predictable profit are paramount today." This 'flight to quality' means market stability and high-standard assets, especially those with strong ESG (Environmental, Social, and Governance) credentials, are at the forefront of investor interest.

 

Poland: Europe's Strategic Growth Engine

 

Amidst this evolving landscape, Poland stands out as a beacon of stability and growth. Its robust economic performance, boasting one of Europe's highest GDP growth rates, positions it as a safe haven and a key driver for regional development. While its economic potential is undisputed, the current focus for investors, as highlighted by Emil Domeracki, Partner, Board Member Land Development Advisory at Walter Herz, is identifying projects poised to lead the market in the next decade or two. This long-term perspective underpins the strategic appeal of Polish commercial real estate.

 

Interestingly, the strength of domestic Polish capital is also on the rise, now accounting for 15% of total transaction volumes in the country. This local expertise often uncovers opportunities that international funds, sometimes overly conservative, might overlook, adding another layer of dynamism to the market.

 

Logistics & Industrial: The Undisputed Market Leader

 

For businesses seeking warehouse or industrial space, the news is particularly positive. The logistics and industrial sector remains the most coveted investment segment, drawing significant interest from major global players. This demand is largely fueled by global trends such as nearshoring – the relocation of production closer to European sales markets – and the relentless growth of e-commerce. As a result, Poland is cementing its position as a strategic logistics hub for Europe.

 

The demand extends beyond standard warehouse halls to technologically advanced, environmentally compliant logistics ecosystems. Bartłomiej Zagrodnik observes, "Poland is currently synonymous with European logistics. The interest in logistics projects, from both tenants and investors, remains strong. Despite the maturity of this market, its growth potential is still significant."

 

This translates into intense demand for well-prepared land for logistics, with a critical emphasis on ESG compliance from the project's inception. Investors are not just looking for available plots but for comprehensive due diligence on ESG guidelines, access to green energy, and designs suitable for certification and preferential bank financing. Future-proofing against regulatory changes over the next decade is now a key value-add sought by informed capital.

 

Institutional Rental Sector (PRS): A Rising Star

 

Beyond traditional commercial spaces, the institutional rental sector (Private Rented Sector - PRS) is also gaining significant traction. Driven by demographic shifts, increasing professional mobility, and a growing acceptance of renting as a lifestyle choice, PRS is evolving from a niche market into a strategic component of major institutional portfolios. This signifies a robust, stable demand for rental housing, now considered an "investment premier league" asset.

What This Means for Your Business

 

For businesses looking to rent office or warehouse space, these market trends are highly beneficial. The investor community's sharpened focus on quality, stability, and ESG translates into a greater availability of premium, future-proof properties. You can expect:

 

  • Higher Quality Assets: Properties developed with long-term value, superior standards, and robust ESG credentials.
  • Stable & Strategic Locations: Investment gravitates towards prime locations that offer enduring stability and connectivity.
  • Sustainable Operations: A strong emphasis on green energy and environmental compliance means modern facilities designed for efficiency and lower operational impact.
  • Future-Proof Infrastructure: Developments are planned with a keen eye on future regulations and technological advancements, ensuring your operations remain competitive and compliant.

 

Poland's commercial real estate market is evolving, offering discerning businesses an opportunity to secure high-quality, strategically located, and sustainable spaces that support long-term growth and operational efficiency.

 

Source: prestigepr.pl