The first quarter of 2020 ended on the industrial market with good results on both the demand and supply side. Poland’s total warehouse stock surpassed the 19 million sq m mark
2019 was another very successful year for the Polish warehouse market. Both developers and tenants remain extremely active, as shown by the record supply of over 2.7 million sq m and the high demand, which has reached 4 million sq m for the third consecutive year.
The year 2019 ended with a record increase in modern warehouse space in Poland. The total demand for the third year in a row reached 4 million sq m.
2020’s headline news is that logistics real estate will continue to be driven by key trends in e-commerce, technology, and labour availability. The logistics sector’s inherent flexibility means that it can more easily adapt to changing opportunities and needs – so we expect 2020’s outlook to be bright.
New research from global real estate services firm Cushman & Wakefield, reveals the last link of the eCommerce supply chain can account for 50% or more of total supply chain spend.
The record supply level and high demand prove the very good condition of the warehouse space market in Poland. In the third quarter of 2019, developers completed 868,000 sq m of warehouse space, and since the beginning of the year - almost 2 million sq m, which is a record supply level in the period from January to the end of September.
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.