Despite a slight drop in demand in Q3 Poland’s industrial market remains robust and in the whole year will most likely register record breaking demand for the third consecutive year. Development activity in Poland remains high.
The third quarter showed that for eight years it hasn’t been so well on the warehouse market in Poland. As demonstrated by the JLL data, vacancy rate was 6,5 per cent., and developers put into service 392,000 sq m. More and more premises were also built speculatively.
- Despite the slightly lower activity of tenants in the third quarter, compared to the previous quarters, the results of demand since the beginning of this year are at record levels - says Tomasz Olszewski, Head of Industrial Department in Central and Eastern Europe, JLL.
Since the beginning of the year, gross demand for warehouse space in Poland amounted to 1,6 million sq m., of which 433,000 sq m. completed in the third quarter of 2015. New lease agreements with extensions amounted to 247,000 sq m., and an additional 186,000 sq m were renewals of existing contracts.
- If, in the fourth quarter the results are similar to those of previous quarters, we can expect that for the third time in a row the demand will reach record levels - adds Olszewski.