A record again - warehouses in the third quarter of 2015

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.

- Despite the slightly lower activity of tenants in the third quarter of 2015 in relation to the previous quarters, the results of demand since the beginning of this year are at record levels - says Tomasz Olszewski, Head of Industrial Agency, Central and Eastern Europe, JLL.

JLL calculated that from the beginning of the year across the country as many as 1.6 million sq m has been leased of which 433. 000 sq m were completed in the third quarter of 2015. New lease transactions with extensions counted to over 247. 000 sq m and an additional 186. 000 sq m were renewals of the existing contracts. The biggest lease agreement signed in 2015 was Leroy Merlin lease of 53 000 sq m in Panattoni Park Stryków II.

Three strong regions

JLL figures show that 59 % of transactions was singed in the three regions + in Warsaw area (22 %) Central Poland (19 %) and Upper Silesia (17 %). This is confirmed by the Panattoni representative. Dobrzycki adds that considerable interest in the halls from the retail sector including retail chains, is observed. According to the calculations of JLL experts in the third quarter of 2015 the largest number of industrial space was leased by logistics operators. Companies from this sector gained 30 % market share.

Who is the tenant?

- Logistics companies appreciate in Poland geographic location and improving infrastructure. Also, logistics companies represent all industries. This means that when any sector starts to grow, there is a growing trend in logistics. Logistics industry is dependent on overall market performance and the tendency of companies to outsource logistics services - explains Tomasz Olszewski, Head of Industrial Agency CEE, JLL.

The next places were representing companies from the retail chains (20%), light industry (13%) and the automotive sector (11%).

Less and less vacant space

JLL's experts emphasise that the vacancy rate in the warehouse sector is the lowest since 2007. Since the end of 2013 it has been gradually declining. - Low vacancy rates will encourage companies to start new investments - selects Olszewski. In the third quarter it counts 6.5 %. Most of vacant space is in Warsaw (11 %) and Szczecin (9.5 %.).

- Interestingly, a number of new markets, such as Rzeszów, Toruń, Lublin and Opole offer virtually no surface available from the spot. However, both in Rzeszów and Toruń are currently being built a few speculative projects, which soon will help to increase the availability on the market - says Tomasz Olszewski, JLL.

Broadening offer for tenants

At the end of the third quarter of 2015 total supply of warehouse and production space in Poland amounted to 9.63 million sq m, which places Poland in the ninth place in Europe. Developers put to stock 392. 000 sq m of a new space, 447. 000 sq m was completed in the first half of this year.

- Most new warehouse were built in Wrocław (109. 000 sq m), then in Upper Silesia (61. 000 sq. m.) and Poznan (51.000 sq m.). In the Tri-City developers have completed 39 . 000 sq m, however, given the small size of that market, you can say that this is a significant increase in supply - JLL experts calculate. Development activity remains high - currently under development in Poland is 663 000 sq m. Part of it will be completed by the end of this year. Interestingly, once again, the share of speculative projects amounts to 42.3 % now supply under construction.

- If in the fourth quarter the results are be similar to those of the previous quarters, we can expect that for the third time in a row the demand will reach record levels - adds Olszewski.

Tomasz Olszewski


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