“Just 5 years ago, the interior of every warehouse looked exactly the same, the biggest craze being various arrangements of shelves. Over the years, however, the situation has changed dramatically. At the moment 100 percent of large facilities—buildings over 25 thousand sqm—are custom-built, which means each of them is different,” says Tomasz Olszewski, Regional Director, JLL. So what are Polish warehouse facilities like now, and what will they be in the future? Analysis by Tomasz Olszewski, JLL.
“We do not intend to become the largest logistics operator in Poland, but we definitely want to be a key player in contract logistics in terms of innovation, customer focus, quality of service and cost efficiency,” says Yann Belgy, General Director, ID Logistics Polska, in an interview for warehousefinder.pl.
Thanks to its excellent location, well-developed infrastructure and attractive rental rates, Central Poland was the most desirable area on the country's warehouse map in 2017. The region accounts for 30 percent of demand within new contracts and expansions.
The latest data from JLL shows that Poland has hit the podium —the country ranks third in Europe in terms of the amount of rented warehouse space. Ahead of Poland are the Netherlands and the largest European market—Germany. Every tenth square metre of warehouse space in Europe was rented in Poland.
The amount of warehouse space on the market and the demand from the logistics industry is growing rapidly. The share of the transport and logistics sector in the Polish GDP has increased by over one fifth since Poland's accession to the European Union.
In the recent years, the size of warehouse space leased by companies has changed significantly. Such is the conclusion of a survey carried out by PMR Consulting & Research which has been commissioned by Fiege and P3 Logistic Parks.
The European self-storage market continues its rapid development. There is currently a total of 8.7 million sq m in 3,200 facilities developed throughout Europe. In Poland, the segment's development is in its early stages. Nonetheless, it already indicates great potential for growth.
The Łódź Special Economic Zone has been awarded the title of the best special economic zone for small and medium-sized companies in Europe. The zone has been recognised in a ranking published by the fDi Intelligence magazine owned by Financial Times.
Increasing demand for warehouse space might translate into higher market rental rates in the near future. We are already seeing an increase in bidding rates, which will definitely lead to an increase in the effective rates. Konrad Lewiński, consultant at JLL, analyses the factors determining the anticipated increases.
The region which was the most sought-after by tenants in Q2 2017 was Central Poland, where deals were signed for a total of 282,000 m², which was some 43% of net take-up. Due to having such a high share last quarter, Central Poland also became the leader in the first half of 2017, overtaking Upper Silesia, Warsaw (both the Suburbs and the Inner City zones) and Wrocław. What makes Central Poland so popular?
In the recent years, automation has become increasingly common in the warehouse industry. “Automation solutions are being implemented in all those industries where it is desirable to accelerate and optimise logistics processes. They can be seen as an obvious step in the development of every company,” says Ludwika Korzeniowska, Business Development Manager, JLL.
Szczecin is still an unsaturated market. A noticeable trend in the region is the increasing activity of investors from Scandinavia. What does Szczecin have to offer as an investment location? The participants of the conference “Szczecin – a logistics-friendly city” have looked for the answer to this question.
“The availability of workforce has become one of the key factors affecting tenants’ choice of locations for industrial and warehouse investments,” says Tomasz Olszewski, Regional Director, JLL. However, finding employees proves increasingly challenging. According to the Central Statistical Office, in April this year 7.7 percent of Poles were unemployed. Poland has not seen an unemployment rate this low for more than 20 years.
The Polish parliament is finalising another amendment to the law on logging. JLL’s Agata Zając discusses the impact of the previous, much more lenient regulations on the trade in land designated for warehouse development.
Adopting an environmental approach in both the construction and operation of warehouse facilities is an increasingly important trend in the Polish warehouse and industrial space market. What are — and most of all, what should be — the features of a sustainable warehouse?
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.