New supply is chasing the demand - warehouse market

27 August 2018

Key findings from the repot „Market in Minutes – Warehouse and Industrial Market in Poland”

  • Record level of space under construction (over 2 million sq m).
  • The highest demand in history of first six months (2.2 million sq m)
  • Record low vacancy level (4%)

 

SAVILLS SUMMARISES H1 2018
ON THE WAREHOUSE MARKET

NEW SUPPLY IS CHASING THE DEMAND

 

According to the latest summary of the warehouse and industrial market in Poland prepared by Savills, at the end of the first half of 2018 the space under construction for the first time in history exceeded 2 million sq m. More than 3/4 of this space has already been leased. Record level of new supply was accompanied by highest ever demand effecting the fall of vacancy rate to 4.0%, which is the lowest value in history.

According to „Market in Minutes – Warehouse and Industrial Market in Poland" in the first half of 2018, the new supply amounted to almost 741,800 sq m, which means a small decrease in comparison year over year. However, in the second half of the year, developers are planning to deliver record amount of new space.

„The warehouse and industrial market in Poland is experiencing its best period in history. Whilst new supply is arriving in quick succession, it is still not enough to satisfy demand. The vast majority of new projects are already rented despite still being under construction and new locations are appearing all over Poland. The current situation in the market can be highlighted through record amount of space under construction and vacancy rates which are as low as they’ve ever been. As a result we have an optimistic outlook and expect more records to be broken in the future,” – explains Wojciech Zoń, Head of Industrial Agency, Savills.

Total supply of modern warehouse and industrial space in Poland at the end of the first half of 2018 amounted to over 14.2 million sq m. The largest markets are: Warsaw (3.8 million sq m), Upper Silesia (2.5 million sq m), Central Poland (2.0 million sq m), Poznań (1.9 million sq m), and Wrocław (1.5 million sq m).

According to Savills data gross demand in the first half of 2018 reached record-breaking 2.2 million sq m, 16% more than last year. Third-party logistics and retail, both traditional and e-commerce, generated over 60% of demand for warehouse and industrial space.

The vacancy rate fell by 190 pbs y-o-y and amounted to 4.0%, which was the lowest value in history of the warehouse and industrial market in Poland . Headline rents range between EUR 2.60 sq m/month and EUR 4.00 sq m/month in case of BIG BOX, up to EUR 5.25 sq m/month in case of SBU in Warsaw.

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