Industrial market records very strong demand for warehouse space. Still the dominating tenant is logistics sector before retailers and automotive industry. New markets are growing. The lowest vacancy rate since 2007.
Strong growth in demand in H1 2015.
New warehouse regions gain recognition from tenants. In 2014, Poland’s warehouse market set new highs, as tenants signed a record number of lease contracts, for more than 2.06 million m², of which 1.4 million m² came from new contracts or extensions. In H1 2015, gross demand reached 1.17 million m², of which almost 781,000 m² was related to new contracts. Unless a sharp downturn is experienced in the second half of the year, we believe that last year’s excellent results will be surpassed.
Strong demand for warehouse space has resulted in significant activity by developers, who have delivered more than 437,000 m² of new industrial space within the first six months of 2015. An additional 672,000 m2 is currently under development.
Positive market sentiment can also be observed by owners of warehouse schemes, as the average vacancy rate for Poland has fallen over the last 12 months by 310 basis points and now stands at 7.4%, the lowest registered level since 2007.
Strong demand and decreasing vacancy rates are encouraging developers to carry out more speculative projects. Currently, almost 23% of space is being developed on a speculative basis, compared to 9.6% last year.
Demand in H1 2015 was mainly driven by logistics operators, which accounted for almost 29% of net take-up, followed by retail sector (with 26%).
Source: JLL, warehousefinder.pl, CSO, H1 2015