Commerce drives the growth of the Polish warehouse market

The first quarter of 2017 on the warehouse market ended with excellent results. Companies leased almost 850,000 sqm of space. It was the best opening quarter in the history of the Polish market. The main driving force was commerce, including e-commerce.

In the first three months of 2017, retail chains, including e-commerce companies, leased 234,000 sqm of space. This amounts to one third of all contracts concluded in the warehouse market. “The Polish retail sector is still growing,” says Tomasz Olszewski, Head of Industrial CEE, JLL. He adds that the newly developed retail facilities require additional logistics services. Thus, the demand for warehouse space from retail chains is increasing. The largest contracts of the first quarter were signed, among others, by Amazon and H&M.

The impact of retail chains on the warehouse market is also visible in the share of logistics operators in the take-up volume of such facilities. In the first quarter of 2017, they accounted for almost a quarter of the total leased space. “The increase in the amount of leased space is a result of the increasing popularity of logistics outsourcing. In this case, warehouses servicing retail chains are leased by logistics operators working with this industry,” adds Olszewski, JLL.

According to JLL's latest report, the growing demand from tenants was reflected in the development investments, resulting in over 538,000 sqm of delivered warehouse space and 1.39 million sqm of space under construction.

At the end of the first quarter of 2017, warehouse space in Poland totalled 11.7 million sqm of space, ranking the country eighth among EU markets.

Tomasz Olszewski