Can West Pomerania compete with the Big Five markets? New regional report: “Catching the Business Wave in Western Pomerania”

West Pomerania remains buoyant

West Pomerania, Poland’s fifth-largest province, is increasingly attracting the attention of overseas investors, especially from Germany and Scandinavian countries. According to May data from Centralny Ośrodek Informacji Gospodarczej (Central Economic Information Bureau), there are 1,472 companies with German, Danish, Finnish, Norwegian and Swedish capital operating in West Pomerania. What is more, investment activity is on the rise - out of all the companies present in the region, over 400 were established in 2018-2022, an increase of close to 40% over the previous five years.

“German and Scandinavian investors are attracted to the region by the geographical proximity of Poland and the long-term, successful business presence of other companies from their home countries. Infrastructure and a large pool of skilled labour are also important, contributing to the region’s success and boding well for further solid growth in the coming years,” comments Damian Kołata, Partner, Head of Industrial & Logistics Agency Poland, Head of E-Commerce CEE, Cushman & Wakefield.

West Pomerania is conveniently located to support logistics supply chains leading to and from Germany, Scandinavia and other regions of Poland.

“This location is an absolute advantage for Western investors in locating projects in the region – further enhanced by access to all modes of transport supporting the movement of goods between the south of Europe and the Baltic Sea countries. West Pomerania lies at an intersection of international road, sea and rail routes providing direct access to the European network of motorways from Scandinavia to Southern and South-Eastern Europe and from Western Europe to the Baltic states and Asia,” says Adrian Semaan, Senior Research Consultant, Industrial & Logistics Agency, Cushman & Wakefield.

The biggest road under construction is S6, which will connect Szczecin Conurbation, Central Pomerania and Tricity, supporting the logistical and economic integration of northern Poland. In the next decade, Szczecin and West Pomerania as a whole will gain access to new expressways S10 and S11, which will shorten journey times and facilitate transport to key cities in central and southern Poland. 

Poland’s seventh-largest market has an appetite for more

The rapid growth of the West Pomerania industrial market is being driven by the development of cross-border logistics and the region’s modern transport network, as well as the availability of development land.

“West Pomerania is a fast-growing industrial market. With warehouse stock of 1.15 million sq m at the end of 2022, it was the seventh-largest market in Poland. Of that total, 85% was delivered in the last six years and close to 35% in the years 2021-2022,” comments Paulina Machałowska, Associate, Industrial & Logistics Agency.

Most projects are fully let, although warehouse availability improved in 2022 following an uptick in development activity, including speculative construction. According to data from Cushman & Wakefield, there is currently 94,000 sq m of warehouse stock under construction.

“Developers’ willingness to build speculatively is a sign of the market maturing and their faith in the region’s further economic growth and stable demand for modern industrial and logistics space. As a result, developers and their business partners have secured land banks which will allow for the development of another 900,000 sq m of industrial space in the next few years,” adds Adrian Semaan.

Top three destinations

Development projects in West Pomerania are concentrated in several strategic locations, the top three being Szczecin, Goleniów and Stargard. Szczecin, including Dąbie and Załom, attracts companies from various industries, mainly logistics, distribution and e-commerce, many of which service Scandinavian markets. Goleniów is favoured mostly by logistics companies, while Stargard, which is located off the S10 expressway, is especially valued by manufacturers for its labour pool and industrial traditions.

“New locations such as Koszalin, Kołbaskowo and Nowogard are also opening up, a direct result of further improvements to the transport infrastructure and the social and economic growth of the province’s subregions. According to Cushman & Wakefield, at the beginning of 2023, West Pomerania had 18 completed commercial industrial and logistics projects – or over 30 if those in the pipeline are included. The region’s potential is, however, far greater. Further infrastructure improvements will pave the way for more mini industrial and logistics hubs which will boost the growth of West Pomerania and help create new jobs,” concludes Damian Kołata. 

For more information please see Cushman & Wakefield’s latest report “On The Tide of Business in West Pomerania”, which looks at the investment potential of West Pomerania as a location for warehouse and e-commerce projects.

Report authors:

Damian Kołata, Partner, Head of Industrial & Logistics Agency Poland, Head of E-Commerce CEE

Adrian Semaan, Senior Research Consultant, Industrial & Logistics Agency

Paulina Machałowska, Associate, Industrial & Logistics Agency. 

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