Total industrial stock in Poland now stands at 16.9 million sq m. Gross take-up in the first half of 2019 exceeded 1.6 million sq m. In addition, over 1.1 million sq m of new space was delivered to market and 2.2 million sq m is under construction.
During the whole 2018, the companies leased over 3.7 million square meters of warehouse space. As JLL data showed - it was the second best result in the history of the market (after 2017). What changes await the warehouse market in 2019?
Poland is ranked 13th in the list of the fastest growing e-commerce markets in the world. We talk to Rafał Szcześniewski, COO & Founder Omnipack about how this affects the development of online store logistics and what will be crucial for entrepreneurs in 2019.
2018 was a challenging year for Special Economic Zones. First of all, the zones underwent a revolution – changes in the law caused that entire Poland was included in the special economic zone. Here is a summary of the most important SEZ events this year.
The Rozprza commune offers over 200 hectares of area to potential investors. The main advantage is the central location of the commune. In addition, the areas were joined by the Łódź Special Economic Zone, creating one of the largest sub-zones of the LSEZ in Rozprza.
Developers are still increasing their activity. As the JLL report has showed, in the first half of 2018, the resources of modern warehouse space in Poland reached 14.2 million square meters. In the last quarter, 343.000 square meters were delivered to the market in 15 warehouse parks, which gives over 648.000 square meters delivered to the market throughout the first half of the year.
The commercial real estate market is waiting for a technological revolution. Already, new technologies have become the everyday life of consulting companies such as JLL. As the first report on PropTech showed in Poland, the Industrial sector mostly understands this.
The value of investment transactions in the Polish warehouse sector at the end of the first quarter of 2018 amounted to approx. EUR 100 million under three purchase/sale agreements. This is the result of the summary of the first three months on the warehouse market prepared by JLL experts.
“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.