According to “Market in Minutes – Warehouse market in Poland” research analysis published by Savills, thanks to the record high new supply in the first half of the year, total stock of modern warehouse and industrial space in Poland raised to 16.8 million sqm. We witnessed also some reshuffling among the largest markets. Warsaw maintains its leading position (4.1 million sqm), while Central Poland (2.73 million sqm) overtook Upper Silesia (2.66 million sqm) due to 246,500 sqm delivered to the market in that region in H1. Over 2.2 million sqm of warehouse and industrial space remains under construction across Poland, with Panattoni BTS Amazon Gliwice as the biggest project (210,000 sqm).
“In the first half of the year the largest level of new supply was observed in Central Poland, what made this region the second most important logistic market in the country, just behind Warsaw (zone I and II). What’s more, in the capital city of Poland as well as in Wroclaw we noticed very strong demand. City logistics is still one of the key trends. At the end of June 2019 there was ca. 52,100 sqm of space under construction located in such schemes and the demand for urban logistics warehouses remains high at ca. 31,000 sqm of net take-up in H1 2019,” said Kamil Szymański, Head of Industrial Agency, Savills.
As stated by Savills, gross demand in H1 2019 amounted to 1.8 million sqm, down by 16 percent y-o-y. The largest volume of take-up was noted in Warsaw (almost 580,000 sqm), nearly 50 percent more than a year before. Key lease agreements (ca. 60,000 sq m each) signed in H1 include: Jysk (Logistic City Piotrków Trybunalski), Pantos Logistics (Panattoni Park Wrocław XI) and PepsiCo (P3 Mszczonów).
Poland’s vacancy rate noticed minor decrease (0.4 pp compared to the first quarter) and at the end of June 2019 remained low at 5.1 percent. The highest rate was observed in Upper Silesia (7.6 percent) and Poznań (7.5 percent). Headline rents were stable: €2.7–4.2/sqm/month for big-box warehouses and stood at €5.35/sqm/month for SBUs in Warsaw.
“The warehouse market kept the momentum. Following the record-breaking level of new supply in H1, the whole year may end with the highest volume of new warehouse and industrial space delivered to the market at ca. 2.5 million sqm,” concluded Kamil Szymański.