{"id":4734,"date":"2024-09-23T08:44:39","date_gmt":"2024-09-23T08:44:39","guid":{"rendered":"https:\/\/ceo.com.pl\/en\/?p=4734"},"modified":"2024-09-23T08:44:39","modified_gmt":"2024-09-23T08:44:39","slug":"developers-are-like-tailors-tailor-made-warehouses-are-in-demand-20247","status":"publish","type":"post","link":"https:\/\/ceo.com.pl\/en\/developers-are-like-tailors-tailor-made-warehouses-are-in-demand-20247\/","title":{"rendered":"Developers are like tailors. Tailor-made warehouses are in demand"},"content":{"rendered":"<p><strong>Warehouse tenants are adopting increasingly advanced technologies to meet client requirements, but at the same time they also need to be mindful of employee wellbeing. Standard buildings in industrial parks are not enough. Companies need customised warehouses and tailor-made solutions, say Jakub Kurek, Head of Industrial and Warehouse Department, and Micha\u0142 Kozar, Associate Director, Industrial and Warehouse Department, Newmark Polska.<\/strong><\/p>\n<p>At the end of June 2024, BTS (build-to-suit) facilities accounted for over a quarter of Poland\u2019s total industrial stock, or approximately 9 million sqm. Nearly 450,000 sqm was under construction. \u201cDespite lower new warehouse supply levels in recent years, demand for tailor-made space remains strong. According to Newmark Polska statistics, last year saw more than 931,000 sqm leased in BTS warehouses, with nearly 460,000 sqm transacted in the first half of this year,\u201d says Micha\u0142 Kozar, Associate Director, Industrial and Warehouse Department, Newmark Polska. \u201cThe largest transaction in this period was an e-commerce company\u2019s lease for over 265,000 sqm of BTS space in P3 Wroc\u0142aw. Since the beginning of last year, lease transactions in excess of 100,000 sqm have also been finalised by Inditex (DL Invest Psary), Raben (CTPark Warsaw West), and LPP Logistics (Bydgoszcz Bia\u0142e B\u0142ota Logistics Center).\u201d<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 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\/developers-are-like-tailors-tailor-made-warehouses-are-in-demand-20247\/#Lubuskie_for_e-commerce_Silesia_for_manufacturing\" >Lubuskie for e-commerce, Silesia for manufacturing<\/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\/developers-are-like-tailors-tailor-made-warehouses-are-in-demand-20247\/#It_all_starts_with_location\" >It all starts with location<\/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\/developers-are-like-tailors-tailor-made-warehouses-are-in-demand-20247\/#Say_what_you_need\" >Say what you need<\/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\/developers-are-like-tailors-tailor-made-warehouses-are-in-demand-20247\/#When_is_a_BTO_warehouse_the_right_option\" >When is a BTO warehouse the right option?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/ceo.com.pl\/en\/developers-are-like-tailors-tailor-made-warehouses-are-in-demand-20247\/#A_new_warehouse_in_10_months_or_later\" >A new warehouse in 10 months or later<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/ceo.com.pl\/en\/developers-are-like-tailors-tailor-made-warehouses-are-in-demand-20247\/#BTS_projects_are_doing_well\" >BTS projects are doing well<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Lubuskie_for_e-commerce_Silesia_for_manufacturing\"><\/span>Lubuskie for e-commerce, Silesia for manufacturing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Companies have, for several years, focused on acquiring leasehold or freehold BTS warehouses in such provinces as Silesia (nearly 180,000 sqm \u2013 this represented the highest BTS supply level in 2023), Kuyavia-Pomerania and Lubuskie.<\/p>\n<p>\u201cLeading BTS locations clearly demonstrate which sectors most often need customised spaces. The BTS market has for years been driven by e-commerce which expanded at pace in Kuyavia-Pomerania and Lubuskie on the back of workforce availability and relatively low labour costs. Another advantage of Lubuskie is its proximity to Germany,\u201d explains Jakub Kurek, Head of Industrial and Warehouse Department, Newmark Polska. Notable projects in this region include the construction of a BTO warehouse developed on a 23-hectare plot for TK Maxx in Sulech\u00f3w. Spanning more than 61,000 sqm, it is the largest distribution centre across continental Europe sending shipments to over 250 TK Maxx stores in Poland, the Netherlands, Austria and Germany.<\/p>\n<p>\u201cFaced with growing customer requirements, e-commerce market players needed warehouses meeting precise specifications in terms of location, size, clear height and equipment, and cutting-edge technology. Such e-commerce giants as Zalando, Hermes Fulfilment and Amazon opted to lease warehouses of up to 250,000 sqm,\u201d says Micha\u0142 Kozar. \u201cDue to high inflation and lower consumer spending, e-retailers no longer need big-box facilities, but by no means have they disappeared from the warehouse or BTS market\u201d.<\/p>\n<p>Today, food retailers such as Auchan, Intermarch\u00e9 and Stokrotka are major BTS market players. Special adaptations are required to ensure appropriate storage conditions for food products in terms of temperature and humidity and to meet strict sanitary regulations. This has led to the growing popularity of BTO warehouses in this sector, with this model embraced by such retail chains as Dino, Lidl and Biedronka.<\/p>\n<p>BTS projects are also popular with manufacturers whose favourite location for manufacturing plants is Silesia. However, in contrast to e-commerce, manufacturers need far smaller facilities averaging 20,000-30,000 sqm, up to 50,000 sqm.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"It_all_starts_with_location\"><\/span>It all starts with location<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite a diverse availability of ready-to-occupy buildings, their space is not what manufacturers, food retailers, e-retailers and companies from many other sectors may be looking for. Adapting a standing facility to individual needs and specifications may be too costly and thereby unprofitable but mostly unfeasible. \u201cTenants opting for a BTS or BTO warehouse may decide on many aspects of a project, starting from site selection. A warehouse can be built on the plot of a developer or a client \u2013 in the latter case it will be a BTO project. Tailor-made facilities are also constructed as standalone buildings within large logistics parks or on adjacent fenced sites. One of the first decisions a client needs to make together with an adviser and developer is choosing the right plot, size, shape and location,\u201d says Micha\u0142 Kozar. \u201cA BTS warehouse developed for Dywidag Systems in Panattoni Park Ruda \u015al\u0105ska II is particularly noteworthy. Dywidag Systems, a leading European supplier of post-tensioning and cable solutions for bridges, whom we had the pleasure of representing, needed a very long facility that would accommodate an almost 300-metre long gantry crane. We knew from the start that it would be very difficult to find a warehouse of the right size and specifications in a multi-let park. In the end, our client opted for a tailor-made project to have a say on its specifications, technologies and many other details during the construction stage,\u201d explains the expert from Newmark Polska.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Say_what_you_need\"><\/span>Say what you need<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>BTS projects also come with a risk. Once a tenant has relocated to a different building upon lease expiry, the developer of a vacated bespoke facility may experience difficulties with leasing it to others. This is why a company opting for a BTS warehouse must be ready to sign a contract for 10 or more years. The more spending and unique technological adaptations are needed, the longer the lease on such a property will be required.<\/p>\n<p>Costs are another matter. Numerous client-specific adaptations and guidelines will usually make a BTS\/BTO warehouse more costly to build. \u201cCompanies choosing to have a BTS warehouse built report diverse needs &#8211; be it a specific location, a special plot size, a building\u2019s height or deployment of cutting-edge technological lines in a production plant. BTS warehouse rents also vary, depending on how the landlord and the tenant contribute to fit-out costs. BTS projects are more complicated to deliver and require attention to every detail, so we support our clients throughout the development process. With a tailor-made project, tenants enjoy flexibility, greater capabilities and the upper hand in negotiations, but they also need to be mindful of each and every detail,\u201d says Jakub Kurek, Newmark Polska.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"When_is_a_BTO_warehouse_the_right_option\"><\/span>When is a BTO warehouse the right option?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>One of the first steps in project delivery is to prepare a budget. If costly technologies are to be deployed, fit-out costs are, in fact, likely to outstrip the value of a building. This sometimes happens. A client may then restart negotiations from the beginning and opt for a BTO project but, of course, does not have to. It is for the client to decide with regard for its funds available and corporate policy,\u201d says Micha\u0142 Kozar. \u201cSome companies opt for BTO warehouses right from the start but they have options to choose from here too: build a facility on their own with their team and a general contractor or contract a developer to handle the entire development process &#8211; from securing an appropriate plot through to design, construction and turnkey delivery.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_new_warehouse_in_10_months_or_later\"><\/span>A new warehouse in 10 months or later<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If a tenant meets basic criteria &#8211; they need a warehouse for 10 or more years and submit requisite financial guarantees &#8211; developers are very willing to build customised warehouses. Unlike logistics parks, BTS\/BTO projects are a safe business for developers.<\/p>\n<p>\u201cFaced with challenging macroeconomic conditions, developers have become even more willing to commit to BTS developments. Every large developer has its own BTS project team,\u201d says Micha\u0142 Kozar, Newmark Polska, adding that the turnaround time is 8-10 months for a traditional facility and usually longer for a BTS project. \u201cThere are many factors at play. Some projects may be a perfect match for a developer\u2019s plot, thereby shortening the preparation process. If not, an alternative suitable plot of land will have to be secured or the one that is available adapted accordingly. The last stage, that is the warehouse fit-out, is also very time-consuming &#8211; it requires ordering and waiting for the delivery of systems, cranes, cold stores, freezers and other items.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"BTS_projects_are_doing_well\"><\/span>BTS projects are doing well<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to Newmark Polska, demand for customised warehouses will grow as the entire market advances. \u201cBTS development has strong potential in Poland but is dependent on the country\u2019s overall geopolitical and economic situation. Companies from leading BTS occupier sectors such as manufacturing, retail and e-commerce are likely to be attracted to invest in Poland by business-friendly tax and customs regulations, as well as the country\u2019s political and economic security and stability,\u201d concludes Micha\u0142 Kozar.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Warehouse tenants are adopting increasingly advanced technologies to meet client requirements, but at the same time they also need to be mindful of employee wellbeing. Standard buildings in industrial parks are not enough. Companies need customised warehouses and tailor-made solutions, say Jakub Kurek, Head of Industrial and Warehouse Department, and Micha\u0142 Kozar, Associate Director, Industrial [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4735,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"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":[8,2665],"tags":[2866,2716,2787,2826,2902,2770,129,2788,2783,2800,2772,3596,2521,2688,2827,2574,355,3251,2522,2855,2754,64,2680,3104,4448],"class_list":["post-4734","post","type-post","status-publish","format-standard","has-post-thumbnail","category-real-estate","category-tsl","tag-amazon","tag-auchan","tag-austria","tag-biedronka","tag-bto","tag-bts","tag-bydgoszcz","tag-continental","tag-contrast","tag-diverse","tag-e-commerce","tag-intermarche","tag-jakub-kurek","tag-leasing","tag-lidl","tag-michal-kozar","tag-netherlands","tag-newmark","tag-newmark-polska","tag-panattoni","tag-play","tag-poland","tag-polska","tag-ruda-slaska","tag-stokrotka"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/4734","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=4734"}],"version-history":[{"count":0,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/4734\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media\/4735"}],"wp:attachment":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media?parent=4734"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/categories?post=4734"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/tags?post=4734"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}