The Poland industrial market remains in very good health, with warehouse supply setting a new high in H1 2019, robust occupier activity and low vacancy rates. Find out more from the MARKETBEAT report: Poland Warehouse Market!
According to Cushman & Wakefield’s latest DNA of Real Estate Q2 2019 report, the European logistics sector continues to perform strongly with strong rental growth and investor demand driving down yield by 2bps, whereas yields in the European office and retail sectors remained flat.
Warehouse stock dedicated to e-commerce in Poland has reached nearly 4 million sq m. The largest volumes of warehouse space available to online retailers are in the Łódzkie voivodeship (887,000 sq m), Lower Silesia (716,000 sq m) and Silesia (621,000 sq m). Global real estate services firm Cushman & Wakefield has published its pioneering research How to handle e-commerce in a warehouse?, which includes an overview of the Polish industrial market from the perspective of e-commerce and key trends having the strongest impact on the sector’s further growth.
The first quarter of 2019 witnessed 22 new completions which brought Poland’s total warehouse stock up to 16.3 million sq m. Total take-up hit 944,000 sq m, of which 74% was transacted under new leases and expansions while renegotiations made up the remaining 26%. The Polish industrial market reported 154 leases with the average transaction size being 6,130 sq m
The pace of yield compression decelerated across Europe’s commercial real estate markets in the first quarter of 2019, according to Cushman & Wakefield’s latest DNA of Real Estate report.
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At the end of 2018, Poland’s industrial and warehouse stock reached 15.79 million sq m. Around 2.22 million sq m of modern warehouse and industrial space was delivered to the market last year, down by just 6% on 2017’s level.
Europe’s commercial real estate markets maintained their positive trend across most markets and property types during the fourth quarter of 2018, according to Cushman & Wakefield’s latest DNA of Real Estate report.
The report – ‘The Changing Face of Distribution: The Shape of Things to Come’ – states that Europe’s primary distribution corridor, from the Benelux countries to northern Italy and dubbed the logistics ‘Blue Banana’ due to its distinctive shape, has transformed into multiple corridors in response to EU expansion and new motorway additions.
At the end of Q3 2018, Poland’s industrial and logistics stock surpassed the 15 million sq m mark following the completion of 1.42 million sq m since the beginning of the year.
European offices have recorded eight quarters of continuous rental growth by achieving a 0.7% increase in Q3 2018, according to Cushman & Wakefield’s latest DNA of Real Estate report.
In H1 2018, warehouse supply totalled 734,000 sq m delivered across 29 projects, bringing Poland’s total industrial stock to more than 14,300,000 sq m, which represented a 21% rise year-on-year.
The overall European logistics yield dropped 14bps to 5.95% in Q2 2018, the first time it has fallen below 6% since Cushman & Wakefield began consistently tracking the three main property sectors in 1992, according to the firm’s DNA of Real Estate report.
Automation and digitisation penetrating all spheres of life also have a material impact on the economy. Experts of global real estate services firm Cushman & Wakefield have identified five key factors that will shape the retail and warehouse market growth going forward.