Developers in Poland still focus on the most mature Warehouse markets, but it is visible that they also appear in emerging regions. Tomasz Mika, National Director, JLL says about the situation in Emerging Markets.
It has been 10 months since the entry into force of the new rules for trade in agricultural property. One of the “side effects” of the new law is exposing the immense planning backlog of towns and municipalities. What else has the act revealed? The new law is evaluated by Agata Zając, Associate Director, JLL.
A record-breaking period on the Polish warehouse market. According to preliminary JLL data, as much as 1 million sqm of warehouse space was leased by companies in the third quarter of 2016, marking the best quarter in the history of the market. “The positive trend on the Polish warehouse and industrial market continues. When it comes to the amount of space leased, we have never seen such high numbers for a three-month period,” says Tomasz Olszewski, Head of Industrial CEE, JLL.
In June this year, for the first time in 12 years, the President of the People’s Republic of China visited Poland. Xi Jinping’s visit should result in greater economic cooperation between the two countries and the initiation of talks between Polish and Chinese companies.
Panattoni Europe has been in Poland for 11 years. In that period, it has been developing the largest projects in the region of Central and Eastern Europe. These include three facilities built for Amazon in Poland and the Czech Republic, each with an area of over 120,000 sqm. The company, however, does not intend to stop there.
According to JLL data for the first half of 2016, more than half of the warehouse space under construction in Poland is being developed on a speculative basis, that is without binding lease agreements. “Clients are increasingly unwilling to wait for their warehouses,” says Tomasz Mika, Head of Industrial Department Poland at JLL.
In the first half of the year, investment projects with a total value of more than PLN 3.7 billion were started in the Special Economic Zones. In total, 106 investment permits were issued. “These excellent results confirm that Special Economic Zones are one of the key solutions that increase Poland’s attractiveness for investors,” says Joanna Choromańska, a JLL expert.
Companies unable to find warehouse space that would meet their requirements are sooner or later going to consider building a build-to-suit warehouse. Joanna Choromańska, a JLL expert, answers the most frequently asked questions about these tailor-made facilities.
To provide logistics services to the pharmaceutical industry and the FMCG sector, logistics providers must fulfil numerous requirements. Maciej Walenda, CEO of DSV Solutions argues that they can only be met by an experienced company. What are the requirements? Read the interview with warehousefinder.pl to learn more.
Although developers operating in Poland still focus on the most mature warehouse markets, they are also more active in the emerging local markets. Regions such as Rzeszów, Lublin, Bydgoszcz or Szczecin have become increasingly popular. What is the reason for this particular interest?
From the time the Special Economic Zones were established in Poland until the end of 2015, companies invested about PLN 111.7 billion there – follows from the data obtained by the Polish government on Tuesday. “These good results attest to the fact that Special Economic Zones are one of the key solutions that increase Poland’s attractiveness for investors,” says Joanna Choromańska, an expert from JLL.
JLL has summarised the first quarter of 2016 on the warehouse property market. These were favourable three months, in which the gross demand – taking into account extensions of existing contracts – reached 680,000 sqm, with new agreements generating a demand of 374,000 sqm. This is the best first quarter result in the last 10 years, which bodes well for the rest of the year. Additionally, more than 418,000 sqm of new space appeared on the market. Consequently, the total supply of warehouse space in Poland amounted to over 10 million sqm. This result has strengthened Poland’s position as the ninth country in Europe in terms of supply.
According to data from JLL, more than a third of warehouse space is now leased by logistics tenants. And since all expert forecasts indicate that the industry is entering a golden age, logistics companies are undoubtedly going to need more and more warehouse space.
Big changes in the land trade are coming next year. Since January the law on shaping the agricultural system enters into force, which may turn out to be a disaster for the industrial and warehouse market. The new rules can block the ability to purchase multiple plots, which until now have been used for the construction of industrial facilities – experts convince.
On the warehouse market there is currently a balance of power between the tenant and the developer - says in an interview with Rzeczpospolita Robert Dobrzycki, Chief Executive Officer Europe, Panattoni Europe.
The third quarter showed that it hasn’t been so well on the warehouse market in Poland since 2007. According to JLL, from the beginning of the year as many as 1.6 million sq m. has been leased across the country of which 433. 000 sq m were completed in the third quarter of 2015. More and more premises were also built speculatively.
The process of negotiating the terms of the warehouse space lease contract is based on several important factors, the most important is the knowledge about the market. In large contracts, negotiations can yield savings of hundreds of thousands of euros per year. [VIDEO]
- Contrary to what it may seem, the success of investment land sales transactions is often not the location itself - said in an interview with Magazyny.pl Agata Zając, Associate Director, JLL. So what is important? - In the eyes of investors it is also important to properly prepare the land for sale – adds Agata Zając.
We observe a new trend in the industrial real estate market in Poland, it is the construction of warehouse parks in smaller regional cities that have so far been overlooked by investors - said in an interview with Warehousefinder.pl Tomasz Olszewski, Head of Industrial Department CEE, JLL.
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