According to the latest Cresa Poland report „Occupier Insight – Industrial and Warehouse Market Q1 2020”, the first quarter of this year recorded very positive results for the warehouse and industrial market. Total stock at the end of the quarter exceeded 19 million sqm – an increase of 16.2% as compared to the corresponding quarter of 2019.
“In Q1 2020 more than 428 000 sqm of new space was delivered to the market, down by 30% compared to the corresponding period last year. Still, close to 2.2 million sqm of space is under construction with the majority to be delivered in 2020. This is the highest result ever recorded on the market for the end of the quarter – Poland exceeded the historically high results achieved in Q2 2018 by over 60 000 sqm,” says Bolesław Kołodziejczyk, PhD, Head of Research & Advisory, Cresa Poland.
The volume of transactions completed in Q1 proves Poland is of strong interest amongst occupiers, developers and investors. In the first quarter lease agreements for nearly 1.1 million sqm were signed. The largest share of transactions were new contracts (72%), followed by renegotiations (18%) and expansions (10%).
The largest transactions of Q1 2020 included the expansion of Euro-net in Prologis Park Janki (73 400 sqm), the BTS lease by OTCF in Panattoni BTS Czeladź (67 000 sqm) and the lease by Lidl in Exeter Park Stryków (51 900 sqm).
The vacancy rate remained stable and amounted to 7.6%. This means an increase of 0,5 pp, compared to the fourth quarter of 2019.
“Despite the economic lockdown caused by the COVID-19 pandemic, the warehouse market remains in good shape. Interestingly the lockdown has triggered a number of new opportunities for the development of the industrial and logistics market in Poland. For instance, the increase in e-commerce is having a knock on effect and benefiting many companies across the entire supply chain, from companies operating online shops to parcel delivery services and logistics companies. This in turn, increases the demand for large-scale logistics facilities and also urban warehouses,” says Tom Listowski, Partner, Head of Industrial and Warehouse for Central and Eastern Europe, Cresa.
In addition, the forecasts prepared by Cresa show that Poland will become even more attractive for enterprises looking to diversify their supply chain across the different regions of the world and be closer to their customer bases. A fall in construction costs and land prices is expected, which is good news for investors and tenants who are planning to launch new industrial and logistics projects.
In the short term, developers may face obstacles in regards to working through various administrative formalities related to planned investments as municipal offices across Poland are operating at reduced capacities. As a result, there may be a few months’ delay in launching new investments. Despite the issues currently being faced both for occupiers and also developers, the warehouse and manufacturing industry in Poland is very well positioned to actually benefit from the current situation.
