In 2014 the Valuation Department at CBRE prepared valuations of industrial schemes with an area of nearly 5 million sqm, representing over 50 percent of modern warehouse space in Poland. Moreover, CBRE valued close to 90 percent of the total volume of transactions that were completed in the last year.
The last few years have witnessed the fast development of the industrial sector in Poland. Factors such as improvements in technical infrastructure and the fast growth of the Polish economy have resulted in an increased level of demand from tenants, and consequently increased development activity related to the implementation of new projects. Development of the industrial sector has had an influence on investment demand, which last year reached a record level of over €700 million and was greater than the volume of commercial real estate transactions.
Maciej Wójcikieiwcz, Director of the Valuation Department at CBRE, commented: “Investment demand in the storage industry in recent years has strongly increased, which has resulted in an increase in the value of equity in 2014 to record levels, exceeding those of 2007 and 2008. It should be noted that developers’ activities are on a high level, resulting in increasing supply and pressures associated with the rental gap between nominal and effective rents. This particularly applies to short term projects and lease agreements. If there is a slowdown in yield compression, capital values will thus be reduced in the long term.”