Rent rates on the Polish market

Warehouse market had a very good past year. However, record demand from tenants did not raise rents for warehouse and industrial space.

- Rents in Poland are still one of the lowest in Europe - says Tomasz Olszewski, Director of the Department of Warehouse and Industrial Space in Central and Eastern Europe, JLL. As JLL’s report shows, in 2016 even a slight decline in base rents could br observed in some markets.  - Slight decreases have been observed in several major markets, but they were negligible and amounted to € 0.2 per m2 per month. In developing markets such as Tricity, Cracow and Warsaw, reductions were less frequent, but usually ranged more - from € 0.2 to € 0.5 per m2 per month - adds Olszewski from JLL.

In 2016 base rents remained stable in Warsaw (2.7-3.6 euro / m2 / month), in Upper Silesia (2.7-3.5 euro / m2 / month), Poznan (2.8-3. , Central Poland (2.6-3.2 euros / m2 / month) and in Tricity (3.0-3.3 euros / m2 / month). A slight decrease of 0.1-0.2 euros / m2 / month was recorded in the urban area of Warsaw and in Wroclaw.

- Base rents are usually just a beginning to further negotiations, during which the developers present the range of incentives and discounts, such as rent free periods and partial or full contribution to the arrangement of leased space - says Tomasz Olszewski.

The scale of rent reductions depends on the tenant's position and market situation. Last year, slight (0.1-0.2 euro / m2 / month) changes in effective rental rates were noted in Poznan, Warsaw City and in Wrocław. At the end of 2016, the most attractive regions were Upper Silesia (1.9-3.1 euros / m2 / month), followed by Warsaw (2.0-2.8 euros / m2 / month), Central Poland (€ 2.0-2.8 / m2 / month) and Poznań (€ 2.1-3.0 / m2 / month).

Tomasz Olszewski