{"id":1053,"date":"2019-08-20T09:50:44","date_gmt":"2019-08-20T09:50:44","guid":{"rendered":"http:\/\/ceo.com.pl\/en\/?p=1053"},"modified":"2019-08-20T09:50:44","modified_gmt":"2019-08-20T09:50:44","slug":"poland-under-construction-warehouse-sector-sees-a-record-number-of-square-metres-being-built-98310","status":"publish","type":"post","link":"https:\/\/ceo.com.pl\/en\/poland-under-construction-warehouse-sector-sees-a-record-number-of-square-metres-being-built-98310\/","title":{"rendered":"Poland under construction \u2013 warehouse sector sees a record number of square metres being built"},"content":{"rendered":"<p><strong>The warehouse sector has another successful six months behind it. High, stable demand at 1.8 million square metres was the result of high activity in the logistics sector. On the supply side, developers are building without pause and are not afraid to invest in speculative projects. In the first six months of this year, nearly 1 million sq m were delivered on the market and further 2.3 million sq m were under construction at the end of June &#8211; these are the main conclusions from the latest report prepared by the consulting company AXI IMMO.<\/strong><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/ceo.com.pl\/en\/poland-under-construction-warehouse-sector-sees-a-record-number-of-square-metres-being-built-98310\/#Demand_Large_transactions_for_the_logistic_sector_fuel_demand\" >Demand: Large transactions for the logistic sector fuel demand<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/ceo.com.pl\/en\/poland-under-construction-warehouse-sector-sees-a-record-number-of-square-metres-being-built-98310\/#Vacancy_rate_The_main_markets_with_the_highest_space_availability\" >Vacancy rate: The main markets with the highest space availability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/ceo.com.pl\/en\/poland-under-construction-warehouse-sector-sees-a-record-number-of-square-metres-being-built-98310\/#Headline_rents_still_with_upward_trend\" >Headline rents still with upward trend<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/ceo.com.pl\/en\/poland-under-construction-warehouse-sector-sees-a-record-number-of-square-metres-being-built-98310\/#Forecast_Total_stock_with_more_than_18_mln_sq_m_at_the_end_of_the_year\" >Forecast: Total stock with more than 18 mln sq m at the end of the year<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Demand_Large_transactions_for_the_logistic_sector_fuel_demand\"><\/span>Demand: Large transactions for the logistic sector fuel demand<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>From January to the end of June 2019, more than 1.8 million sq m were leased, of which new lease agreements accounted for 66%. Although this result is 18% lower compared to the first half of 2018, no signs of a slowdown in the sector are visible yet. Stable demand is the effect of still high internal consumption, including further increases related to e-commerce.<\/p>\n<p>The best results were achieved by the five main warehouse and production hubs, which accounted for 89% of demand in the first half-year. The most space was leased in the Warsaw region (550,000 sq m). This result is 70% higher compared to the same period last year and is the result of several large logistics investments and an increase in the number of contracts related to last mile logistics in the cities. Lower Silesia came in second with over 330,000 sq m of leased warehouse space. Then Central Poland and Upper Silesia with a demand of 300,000 sq m in each of these regions.<\/p>\n<figure id=\"attachment_433\" aria-describedby=\"caption-attachment-433\" style=\"width: 300px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-433\" src=\"http:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2017\/11\/Anna-Glowacz-1-300x200.jpg\" alt=\"Anna G\u0142owacz, Head of Industrial \u2013 Leasing Agency\" width=\"300\" height=\"200\" title=\"\" srcset=\"https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2017\/11\/Anna-Glowacz-1-300x200.jpg 300w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2017\/11\/Anna-Glowacz-1-768x512.jpg 768w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2017\/11\/Anna-Glowacz-1-1024x682.jpg 1024w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2017\/11\/Anna-Glowacz-1-696x464.jpg 696w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2017\/11\/Anna-Glowacz-1-1068x712.jpg 1068w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2017\/11\/Anna-Glowacz-1-630x420.jpg 630w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2017\/11\/Anna-Glowacz-1.jpg 1934w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-433\" class=\"wp-caption-text\">Anna G\u0142owacz, Head of Industrial \u2013 Leasing Agency<\/figcaption><\/figure>\n<p><em>It is worth noting the very good result of Lower Silesia, where the high activity of companies already present in the region as well as new entrants is visible. Over 90% of contracts were new lease agreements. Lower Silesia has many advantages that favour the development of the sector, including its convenient location for international distribution, the availability of land, quite strong industry and the absorbent consumer market in Wroclaw &#8211; <\/em><strong>explains<\/strong> <strong>Anna G\u0142owacz<\/strong>, <strong>Head of Industrial at AXI IMMO.<\/strong><\/p>\n<p>In the last six months we observed high activity among logistics operators, who rented the most space to service large contracts. Their share in the demand structure was 46%. Retail chains and production companies were in second place with a share of 11.5% and 11%, respectively.<\/p>\n<p><strong>Supply: High over 50% share of speculative projects <\/strong><\/p>\n<p>Total supply of modern warehouse space at the end of June this year amounted to over 16.8 million sq m. Developer activity is at a high level, with 1 million square metres delivered on the market since the beginning of the year, which is 65% more compared to the same period last year. The high half-year result on the supply side is the result of a large number of investments started in the last quarter of last year.<\/p>\n<p>Most new space, over 220,000 sq m, was delivered in Central Poland, followed by over 125,000 sq m, in Warsaw and in Lower Silesia. Eastern Poland and Szczecin stood out among the new markets, where in total over 235,000 sq m were commissioned.<\/p>\n<p>The forecast presented by AXI IMMO\u2019s experts in Q12019 report came true, as a result of high development activity, the total stock of warehouse space in Central Poland exceeded supply in Upper Silesia.<\/p>\n<p>According to an analysis carried out by AXI IMMO experts, 2.3 million square metres of warehouse space was under construction at the end of June. Upper Silesia remains the largest construction site, where developers within 14 investments are building 587,000 sq m, of which 210,000 sq m are in the BTS project for Amazon in Gliwice. Next are Central Poland (471,000 sq m) and the Warsaw region and Upper Silesia, where over 420,000 sq m of modern warehouse space are being built in each of these regions.<\/p>\n<p><em>The high number of investments under construction is also the result of speculative investments, whose share at the end of June this year was over 50%. This is an increase of 22% compared to the end of the first quarter of this year. In most cases, developers, after signing the first pre-let agreement, begin construction with a large speculative component \u2013 <\/em><strong>comments Anna G\u0142owacz<\/strong><em>. <\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Vacancy_rate_The_main_markets_with_the_highest_space_availability\"><\/span>Vacancy rate: The main markets with the highest space availability<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>At the end of June 2019, the average vacancy rate was 5.0%, which means an increase of 0.3 of a percentage point compared to the vacancy rate at the end of March this year. The highest increases in vacancy rates during the second quarter were in Central Poland, where at the end of June this year 9.2% of the region&#8217;s stock was immediately available. In addition, more than 7% was available in Poznan (7.6%) and in Upper Silesia (7.5%).<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Headline_rents_still_with_upward_trend\"><\/span>Headline rents still with upward trend<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Rental rates in most warehouse locations in the past six months showed a further slight upward trend, especially in terms of headline rents, both in the main markets and in newly opened projects. Average rents for logistics space ranged from 2.8 to 3.7 euros per square metre, while for city investments they even reached 5.4 euros per metre. The best chance of obtaining attractive effective rents still exist in the Warsaw and Poznan regions.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Forecast_Total_stock_with_more_than_18_mln_sq_m_at_the_end_of_the_year\"><\/span>Forecast: Total stock with more than 18 mln sq m at the end of the year<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The warehouse market will remain in good shape in the second half of the year. At the end of the year the total stock of modern warehouse space in Poland will reached 18 million square metres. \u00a0Demand should remain stable and at least 3.5 million square metres should have been leased by the end of 2019. The trend of adapting supply chains for e-commerce will continue.<\/p>\n<p>In terms of warehouse space availability, we can expect a periodic increase in availability due to the commissioning of speculative projects and the relocation of logistics companies, especially in Central Poland and Upper Silesia. Rental rates will remain stable up to the end of the year, especially in the main markets, where high competition among developers persists.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The warehouse sector has another successful six months behind it. High, stable demand at 1.8 million square metres was the result of high activity in the logistics sector. On the supply side, developers are building without pause and are not afraid to invest in speculative projects. In the first six months of this year, nearly [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":433,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[7,8],"tags":[2866,206,128,2770,2772,2867,2688,64,76,82],"class_list":["post-1053","post","type-post","status-publish","format-standard","has-post-thumbnail","category-reports-analysis","category-real-estate","tag-amazon","tag-anna-glowacz","tag-axi-immo","tag-bts","tag-e-commerce","tag-gliwice","tag-leasing","tag-poland","tag-szczecin","tag-warsaw"],"jetpack_publicize_connections":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/1053","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/comments?post=1053"}],"version-history":[{"count":0,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/1053\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media\/433"}],"wp:attachment":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media?parent=1053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/categories?post=1053"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/tags?post=1053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}