The booming Tricity warehouse market


Tricity is currently the seventh warehouse market in Poland in terms of size, characterized by a large and relatively affluent population and low unemployment. The region has maintained high growth momentum in recent years and has a potential to continue to expand at a fast rate thanks to its transition from a local logistics market to an important national distribution centre. This is being facilitated by the growing importance of its sea ports and continuously improving road and rail infrastructure. Take-up (excluding short lets) amounted to 177,000 sqm in H1 2020, marking a 266% increase compared to H1 2019. How warehouse market in Pomerania is developing in 2020, AXI IMMO experts decided to check.

“The increase in the attractiveness of the Tricity warehouse and logistics market is a result of the rapidly growing significance of its sea ports, the agglomeration’s convenient location and occupiers’ increased activity due to the expansion of their e-commerce channels. Between 2014 and 2019, transshipments increased by 62% in the Gdańsk sea port and by 24% in the Gdynia sea port. The region also boasts a cargo airport in Gdańsk and a well-developed road infrastructure, including access to the A1 motorway, which links the region with Southern Poland, and the S7 expressway to Warsaw and Kraków. Developers 7R and Panattoni are currently particularly active in the market” – comments Danuta Dzierżak Associate Director Industrial & Logistic at AXI IMMO.

“Currently, ports in Gdańsk and Gdynia, including the latter’s DCT container port, are being expanded and modernised. Simultaneously, road works are underway on the S6 expressway, which will provide better access from the region to Szczecin and Berlin. The completion of these investments will enable the Tricity region to attract business from companies based on the Baltic sea. Moreover, Poland’s strategy of developing multimodal transportation and increased container traffic may be an opportunity for the region to evolve into a pan-European distribution centre on a par with Central Poland and Upper Silesia” – adds Danuta Dzierżak.

In H1 2020, new completions in the Tricity warehouse market amounted to 62,000 sqm (+39% vs H1 2019). This brought total stock in the market to 706,000 sqm as at the end of June 2020. Tricity is without a doubt one of the fastest growing warehouse and logistics markets within Poland, with GLA increasing by an impressive 160% over the last 5 years (national average: 115%). As at the end of June 2020, 206,000 sqm was under construction (+500% y/y). This is an equivalent of 29% of the market’s total stock, which is the 5th highest pipeline relative to the size of the market in the country. The largest schemes currently under construction include Panattoni Gdańsk Airport (total GLA of 111,500 sqm), Panattoni Park Tricity East (32,900 sqm), 7R Gdańsk II (51,000 sqm) and further phases of 7R Tczew (50,000 sqm on top of existing 46,700 sqm).

High supply has been correlated with robust occupier demand. As a result, the vacancy rate in the market stands at 4.3% as at the end of June 2020 – well below the national average of 6.8%. The share of space built on a speculative basis has fallen from 50% at the end of 2019 to just over 30% at the end of June 2020, which also illustrates good absorption of space.

Gross take-up in Tricity, excluding short leases, reached 177,000 sqm in H1 2010 (+266% vs H1 2019). Demand is generated by various groups of occupiers, from logistics companies, retail chains and the FMCG sector, through to construction companies and production. The largest lease of H1 2020 was signed by Globalway – an interior design company – at Panattoni Park Gdańsk East IV, where the firm decided to lease 52,000 sqm. Moreover, two new leases were signed by logistics operators – Omega Pilzno (14,500 sqm) and Greenyard (11,700 sqm) at Panattoni Park Gdańsk East III (Rafineria). In addition, a textile company took 13,350 sqm at Park Tricity North in Rumia.