3 minute read
Developing Industrial Real Estate in Poland
An Interview with Marcin Janicki, the CEO of Next Step
Next Step is a development and investment company that implements designs of warehouse, logistics and production facilities in Western Poland. Next Step builds facilities in the BTS (Built to Suit) formula according to the individual requirements of the tenants. In addition, the company introduces its clients to local communities, authorities, and recruitment experts. Julia Morta talked with Marcin Janicki about the industrial real estate market in Poland.
What is the current state of the industrial real estate market in Poland?
Due to a decrease in sales, the interest in large warehouses for e-commerce has dropped. On the other hand, European manufacturers are realizing the importance of being closer to their sub-suppliers and customers. As a result, nearshoring is gaining popularity and new production projects are emerging, particularly from companies transferring from Asia.
What are the main trends in the industry at the moment?
At the moment, the market is waiting for the cost of raising money to stabilize. In the next 15-20 years, Poland will remain an attractive destination for investors due to its geographic location, labor force, and the size of the country. However, the growth is unlikely to match the intensity of the past few years, when several million square meters were developed.
What types of projects has Next Step been involved in?
Before the pandemic, and for some time after, we were co-investing in large warehouses for the e-commerce industry. Over the past 20 years, we have also been involved in building production facilities ranging from 5 to 20 thousand square meters. Currently, our primary focus is to be the fastest and the best in this field in our region.
What was your most significant project to date?
An e-commerce facility that we built with our investor near Gorzów Wielkopolski. Although it was our biggest project (120,000 sqm), we managed to complete it very quickly.
Where do your investors come from?
Most of the investors are from Germany. The Scandinavian markets also show potential due to rapidly rising prices. We have also noticed increasing interest from Korean companies. Depending on policy changes, Chinese businesses may also want to establish a presence in Poland to shorten their supply chains.
What are Next Step's unique selling points?
First of all, our local presence. We are strongly focused on our region, and I think there are few large companies as responsive as we are. For instance, we can agree on a 30-million-euro investment in two days, and finish it in just five months. Another crucial aspect is our focus on people.
We select places where local governments have a pro-investment attitude. Unlike a fund, we don't prioritize scale – instead, what matters to us are long-term relationships, reliability, and delivering the best solutions in our buildings.
What would you advise companies who are considering locating their warehouse or factory in Poland?
Choose the location thoughtfully. There is a common misconception that businesses should be located in major cities. As a result, many companies in Poznań or Wrocław have to transport workers from smaller towns up to 150 kilometers away. Instead, consider placing your factory where people live, and offer them competitive wages. This is the approach we promote. By locating your business within a community and engaging in local projects, you gain respect and loyalty among employees.
Marcin Janicki
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