The maturity of the Polish real estate market as an asset for foreign investors – the conclusions of the JLL report, 'Made in Poland'
22-08-2022
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magazyny .pl
Europe's industrial real estate market is maintaining its pace of growth, according to the 'Made in Poland' report, a comprehensive guide for investors - manufacturing companies considering setting up operations in Poland, as well as those already present and expanding in the country. In the challenging years of 2020 and 2021, the industrial real estate market proved its resilience and crucial importance to the global economy against a backdrop of disrupted and disrupted supply chains which forced major players to act immediately and adjust their real estate strategies. These moves are now shaping the future of the entire industrial market.
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- Poland is the sixth largest real estate market in Europe. The diversity of assets and the wide choice of locations are the country’s important differentiators. Investors entering the Polish market have a wide range of potential development opportunities at their disposal, depending on their individual business strategy.
- Poland's existing warehouse stock has more than doubled over the past five years. The commercial stock of industrial and logistics space in Poland now exceeds 26 million m².
- Most of the existing warehouse stock is located near Poland's major agglomerations and cities such as Warsaw, Katowice, Łódź, Wrocław and Poznań, accounting for 80% of the national supply.
- New locations have also recently attracted the attention of developers and tenants, with markets in the the Lubuskie Voivodeship, the Bydgoszcz area and Rzeszów leading the way.
- Furthermore, the selected key logistics and industrial locations in Poland have been shaped by their history and characteristics, which further confirms the maturity of the Polish market. The industrial heritage of Upper Silesia and Rzeszów (e.g. aviation) translates into the sector's current investments in these regions. The situation is similar in Central Poland and Bydgoszcz, where, due to its convenient location in the centre of the country and transport advantages, there is now increased investment activity from logistics operators and retailers. Western regions, such as the Lubuskie Voivodeship and the Wrocław area, are often chosen by companies operating in Western Europe. Tri-City and Szczecin are attracting companies who require access to seaports.
- The amount of industrial land available for development continues to grow. Driven by unrelenting demand, developers are securing new plots of land with local authorities keen to issue local development plans, favouring the launch of new projects of both domestic and foreign investors. Investment in road infrastructure is also creating new location opportunities, which are attractive in terms of transport infrastructure, the labour market and state subsidies.
- One of the first decisions to be made with regard to real estate is to choose between leasing or purchasing space. This decision will largely depend on the business strategy, the time horizon of the investment, potential expansion plans and the degree of the investor’s flexibility.
- You do not have to own a building to receive public support - tenants can also receive state aid. Manufacturers can therefore choose from a range of development options - from renting or buying an existing property to building and leasing a new built-to-suit (BTS) facility, i.e. warehouses designed and built according to the customer's individual requirements.
- In order to start development as soon as possible, most developers have 'virtual land banks' prepared to start construction work as soon as the decision is made. The length of the legislative process for such an investment can vary depending on development scenarios and the extent of public support.
- Leasing space in an existing park is the quickest way to get started. However, in the case of production space, existing warehouses may require additional improvements, which can extend the process by several months, especially if the need for a new environmental decision and/or planning permission arises.
- Built-to-suit (BTS), i.e. a hall designed and built for a dedicated customer, and built-to-own (BTO) projects require the most time and patience on the part of the investor. The process from the selection of a location to the issuing of an occupancy permit usually takes around 62-92 weeks.
- The process of leasing a facility that is built to the manufacturer's needs (BTS) but is located in an existing park will take considerably less time, between 33 and 65 weeks. This is because, in many cases, permits may already be obtained and some of the necessary infrastructure is in place. In this case, the developer is only required to apply for an amendment to the existing permits to take into account the current investment plan.
- The unrelenting demand and growth rate of the warehouse market has created a competitive environment in the development sector. Currently, the leading developers of industrial facilities are large international groups such as Panattoni, Hillwood, 7R, GLP, Exeter, P3, SEGRO, Prologis and MLP, which have many turnkey industrial projects to their credit.
24 100 m2
Nowa Sol, Lubuskie
