News Article city logistics development industrial Krakow last-mile logistics Panattoni Europe Poland
by Property Forum | Industrial

Panattoni is to build a city park in Kraków - City Logistics Kraków I will have a total area of 36,500 sqm. The first of two buildings is to be ready in September 2021 and the first tenant, a logistics operator specialising in last mile deliveries, has already leased 9,040 sqm. Panattoni's latest project will play a crucial link in the chain from online store to courier company and finally on to consumer.

City Logistics Kraków I with an area of 36,500 sqm is to be built in the administrative capital of the Małopolska region on ul. Cementowa. Currently, the developer is in the process of applying for the building permit and the first of two buildings will be ready as early as September next year. A logistics operator specialising in the final stages of the delivery chain and especially in last-mile deliveries is to take up over 9,000 sqm out of the available 14,500 sqm. The remaining space and another building of 22,000 sqm are being developed on a speculative basis and will comprise SBUs (Small Business Units) with the smallest module being 1,100 sqm.  The park is intended as a hub for e-commerce and courier companies as well as for packaging and light production. The development will also meet the requirements for a company showroom or even for a head office.

Even though Kraków with 800,000 people is one of the largest cities in Poland second only to Warsaw and is well connected to the rest of the country, it has one of the smallest warehouse and logistics markets in the country. “Its development is held back by the relatively high price of land in the region and by the fact that the town is next to Upper Silesia, which has the second biggest logistics market in Poland,” explains Michał Samborski, Head of Development, Panattoni. Nonetheless, he points out that with its large population and its rich retail market, Kraków is becoming attractive to logistics operators and courier firms particularly at a time of rapid growth in e-commerce and omnichannel sales strategies and he/she adds: “Shortening the delivery chain is currently a priority for many logistics companies. Having a warehouse within city limits allows you to quickly reach the final customer. Also, such a location is easily accessible to delivery vehicles coming in from warehouses beyond the city.”

City Logistics Kraków I is to undergo BREEAM certification for a rating of 'Very Good'. Just next to the park is a tram and bus terminal, which makes it easy for employees to come to work. Moreover, the park is next to a junction of the S7, which connects Kraków with Warsaw and the Tricity. It is also a short drive to the A4 motorway, which runs from the German border, through Upper Silesia to the border with Ukraine.