Poland has become one of the best logistics markets in Europe. As a result, 2014 should see further growth in demand for warehouse space as the country strengthens its role as a logistics centre for the CEE region, according to CBRE’s Poland Industrial Destinations 2014.
In 2013, the total value of investment transactions on the commercial market amounted to €3.2 billion, out of which the logistics sector accounted for 19 per cent. In the same year, developers started the construction of around 650,000 sqm of modern industrial and logistics space, which was twice as large as the figure recorded in 2012.
Rental levels in 2014 are expected to remain similar to those recorded in 2013, especially in locations with high vacancy levels. Other regions such as Wroclaw or Poznan may experience some upward pressure, particularly in terms of effective rates.
In Q1 2014, the total stock of modern industrial and logistics properties reached 7.9 million sqm, with an overall average vacancy rate at the level of about 10 per cent, from which single digit figures were registered in Krakow, Poznan, Szczecin, North and Wroclaw. The demand for modern industrial and logistics space in 2013 accounted for about 2.1 million sqm. This figure is the highest ever recorded on the Polish industrial and logistics market.
The strongest regions in the country, in relation to the amount of leasing activity, were Wroclaw (485,000 sq m leased), followed by Poznan (432,000 sq m). Warsaw’s (region and city) performance was quite moderate when compared to previous years with the total leasing activity amounting to 482,000 sqm. The most active tenants are from the various logistics sectors driven by FMCG and e-commerce business, as well as the manufacturing sector, mainly driven by the automotive business and other key industries. In view of the optimistic economic outlook for 2014, a positive performance from the industrial and logistics property sector is expected.