Industrial Market - Q3 2014 Report

The industrial market is in very good shape. Overall market sentiment remains positive as demand for warehouse floorspace displayed a y-o-y increase for the fourth consecutive quarter.


Another quarter of dynamic development on Poland's industrial market, with speculative activity on the rise

Tenant demand remains strong with 1 million of net take- up expected for 2014 and speculative developments again on the rise, an analysis of the industrial market in Q3 2014 shows.

Tomasz Mika, Head of Industrial Poland, JLL, said: “The industrial market is in very good shape. Overall market sentiment remains positive as demand for warehouse floorspace displayed a y-o-y increase for the fourth consecutive quarter. Total demand registered in Q3 2014 stood at 343,000 sq m, with new agreements and extensions accounting for 261,000 sq m, and the remainder - 82,000 sq m - being attributable to renewals. Importantly, the net take -up from the beginning of the year totals 787 000 sq m and is expected to hit 1 million sq m by the end of the 2014. Gross demand since the beginning of the year is over 1.2 million sq m, so the total tenant activity will exceed 1.5 million sq m by the of the year. Logistics operators still constitute the key occupier group”

 

Thanks to one large and a number of smaller leasing deals Upper Silesian was the region, which witnessed the strongest occupier interest in Q3 – 87,000 sq m, with the Warsaw Suburbs, Poznań and Wrocław completing the top four. Since the beginning of the year, the highest interest in industrial space was recorded in the Warsaw Suburbs Zone (313,000 sq m), followed by Upper Silesia (255,000 sq m), which both happen to be, stock-wise, the largest warehousing regions. Boosted by last-year’s most prominent transactions by Amazon, the regions of Poznań and Wrocław also sustained strong demand.
Logistics operators remained the key occupier group during Q3 accounting for 35% of new demand. The second largest share in net demand, 28% ,was attributable to retailers, followed by automotive companies, who represented 17% of Q3's net demand.


Tomasz Mika

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