{"id":627,"date":"2018-02-28T17:31:09","date_gmt":"2018-02-28T17:31:09","guid":{"rendered":"http:\/\/ceo.com.pl\/en\/?p=627"},"modified":"2018-02-28T17:31:09","modified_gmt":"2018-02-28T17:31:09","slug":"storage-facilities-central-europe-experiencing-boom-record-breaking-development-occupiers-appetite-industrial-stock-define-region-19305","status":"publish","type":"post","link":"https:\/\/ceo.com.pl\/en\/storage-facilities-central-europe-experiencing-boom-record-breaking-development-occupiers-appetite-industrial-stock-define-region-19305\/","title":{"rendered":"Storage facilities in Central Europe are experiencing a boom. Record-breaking development and occupiers\u2019 appetite for industrial stock define the region"},"content":{"rendered":"<p><strong>The year 2017 saw the greatest amount of industrial space built in Europe in its history \u2013 more than 3.7 million sq\u00a0m. This represents a 68% increase over 2016 and a 55% increase over the existing record dating back to 2007 (an additional 1.2 million sq\u00a0m). The total industrial space in the region has increased by 17% as a result. Such are the results of a survey conducted by Cushman &amp; Wakefield, a company that has been monitoring the industrial property market in the Czech Republic, Slovakia, Poland, Hungary and Romania on a long-term basis.<\/strong><\/p>\n<p>The average occupancy rate reached a record-breaking 95.1%. In effect, take-up is greater than ever and new additions have no problem finding their occupiers before or during development. The greatest amount of industrial space in history was leased in Europe in 2017 \u2013 6.7 million sq\u00a0m, one million more than last year.<\/p>\n<figure id=\"attachment_628\" aria-describedby=\"caption-attachment-628\" style=\"width: 200px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-628\" src=\"http:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/ferdinand_hlobil_head_of_industrail_cee_region-200x300.jpg\" alt=\"Ferdinand Hlobil, Partner and the Head of the CEE Industrial Team\" width=\"200\" height=\"300\" title=\"\" srcset=\"https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/ferdinand_hlobil_head_of_industrail_cee_region-200x300.jpg 200w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/ferdinand_hlobil_head_of_industrail_cee_region-768x1152.jpg 768w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/ferdinand_hlobil_head_of_industrail_cee_region-683x1024.jpg 683w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/ferdinand_hlobil_head_of_industrail_cee_region-696x1044.jpg 696w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/ferdinand_hlobil_head_of_industrail_cee_region-1068x1602.jpg 1068w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/ferdinand_hlobil_head_of_industrail_cee_region-280x420.jpg 280w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/ferdinand_hlobil_head_of_industrail_cee_region-1920x2879.jpg 1920w\" sizes=\"auto, (max-width: 200px) 100vw, 200px\" \/><figcaption id=\"caption-attachment-628\" class=\"wp-caption-text\">Ferdinand Hlobil, Partner and the Head of the CEE Industrial Team<\/figcaption><\/figure>\n<p><em>\u201cAlthough the development in the region is unprecedented and the Central European region\u2019s steep growth rate is approaching its maximum, we are not afraid of a major reversal. The record values are nearing or have even exceeded the pre-crisis figures in many respects while one principal indicator has been decreasing \u2013 and that is the vacancy rate. Offer meets demand and in this respect the current market is much sounder even though it may appear overheated,\u201d\u00a0<\/em>says\u00a0<strong>Ferdinand Hlobil<\/strong>, Partner and the Head of the CEE Industrial Team.<\/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\/storage-facilities-central-europe-experiencing-boom-record-breaking-development-occupiers-appetite-industrial-stock-define-region-19305\/#Leasing\" >Leasing<\/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\/storage-facilities-central-europe-experiencing-boom-record-breaking-development-occupiers-appetite-industrial-stock-define-region-19305\/#Vacancy_rate\" >Vacancy rate<\/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\/storage-facilities-central-europe-experiencing-boom-record-breaking-development-occupiers-appetite-industrial-stock-define-region-19305\/#New_development\" >New development<\/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\/storage-facilities-central-europe-experiencing-boom-record-breaking-development-occupiers-appetite-industrial-stock-define-region-19305\/#Investment\" >Investment<\/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\/storage-facilities-central-europe-experiencing-boom-record-breaking-development-occupiers-appetite-industrial-stock-define-region-19305\/#Outlook\" >Outlook<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/ceo.com.pl\/en\/storage-facilities-central-europe-experiencing-boom-record-breaking-development-occupiers-appetite-industrial-stock-define-region-19305\/#The_biggest_transactions_for_2017\" >The biggest transactions for 2017:<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Leasing\"><\/span>Leasing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Of the total 6.7 million sq\u00a0m of leased space, more than 4 million sq\u00a0m comes from Poland, by far the most active country in terms of transactions. This also represents Poland\u2019s record. 1.3 million sq\u00a0m, approximately 70\u00a0000 sq\u00a0m less than in 2016, was leased in the Czech Republic. From the long-term perspective, this is a high figure that has been steadily reoccurring with minor differences since 2013. Both Hungary and Romania have seen their respective records in terms of sq\u00a0m of leased space. 617\u00a0625 sq\u00a0m was leased in Hungary, almost 200\u00a0000 sq m more than in 2016. 283\u00a0529 sq\u00a0m was leased in Slovakia.<\/p>\n<figure id=\"attachment_625\" aria-describedby=\"caption-attachment-625\" style=\"width: 200px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-625\" src=\"http:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/joanna_sinkiewicz-200x300.jpg\" alt=\"Joanna Sinkiewicz, Partner, Head of Industrial and Logistics Agency, Cushman &amp; Wakefield Poland\" width=\"200\" height=\"300\" title=\"\" srcset=\"https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/joanna_sinkiewicz-200x300.jpg 200w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/joanna_sinkiewicz-768x1152.jpg 768w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/joanna_sinkiewicz-683x1024.jpg 683w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/joanna_sinkiewicz-696x1044.jpg 696w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/joanna_sinkiewicz-1068x1602.jpg 1068w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/joanna_sinkiewicz-280x420.jpg 280w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/joanna_sinkiewicz-1920x2880.jpg 1920w\" sizes=\"auto, (max-width: 200px) 100vw, 200px\" \/><figcaption id=\"caption-attachment-625\" class=\"wp-caption-text\">Joanna Sinkiewicz, Partner, Head of Industrial and Logistics Agency, Cushman &amp; Wakefield Poland<\/figcaption><\/figure>\n<p><em>\u201cTotal warehouse stock in Poland increased by 20%. For the fifth consecutive year demand for logistic space reached a record level, with last year\u2019s transaction volume exceeding 4 million sq m.\u00a0 Healthy GDP growth of 3.8% as well as further infrastructure investments and the global trend of e-commerce expansion are expected to be the key factors underpinning further warehouse market growth in 2018. New projects will appear not only in the key markets such as Warsaw, Upper Silesia or Central Poland but also in the middle size cities with greater labour market availability,\u201d<\/em>\u00a0said\u00a0<strong>Joanna Sinkiewicz<\/strong><em>,\u00a0<\/em>Partner and the Head of the Industrial Team in Poland.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Vacancy_rate\"><\/span>Vacancy rate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The vacancy rate has decreased to a historic low at 4.9% despite the record-breaking development. This reflects the good condition of Central European economies. The lower this ratio is, the better the condition of the economies of the countries concerned.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"New_development\"><\/span>New development<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Poland was a clear leader in terms of new development. Its share at 2.3 million sq\u00a0m accounted for a full 63% of the newly built 3.7 million sq\u00a0m. 662\u00a0000 sq\u00a0m of new industrial space was built in the Czech Republic \u2013 the second best result in Central Europe and the second best result in Czech history. This was 162\u00a0000 sq\u00a0m more than in 2016. Surprisingly, Romania followed closely with almost half a million [sq\u00a0m] of newly built industrial space. This is a clear record, outperforming the 2016 record figure by about 100\u00a0000 sq\u00a0m. Hungary and Slovakia added roughly similar amounts of space, 120\u00a0000 sq\u00a0m of new industrial space.<\/p>\n<p><em>\u201cPoland has become the clear winner in terms of taking advantage of the post-crisis economic boom. After them, the Czech Republic and Romania have benefitted the most. Hungary and Slovakia did not take full advantage of the opportunities of the beginning of the last decade, however in the past two years the two countries have begun to accelerate their growth,\u201d\u00a0<\/em>says\u00a0<strong>Ferdinand Hlobil.<\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Investment\"><\/span>Investment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The investments in industrial properties amounted to EUR 2.2 billion in 2017, 19% of the total amount of investment in commercial properties in Central and Eastern Europe.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Outlook\"><\/span>Outlook<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Cushman &amp; Wakefield expects a strong year 2018, both in terms of new construction and continuously strong demand. Central and Eastern Europe still benefits from low wage costs and an excellent location in Europe. Changes in the retail structure &#8211; the further expansion of e-commerce &#8211; will also support the further growth in demand for industrial real estate. Developers are therefore expected to further build in large volumes.<\/p>\n<p><em>&#8220;Despite the very successful period of the last years, Central Europe (including Romania) did not catch up with Germany in terms of overall metres square of modern industrial space. However with regard to the very low vacancy rates and strong tenant demand, the big potential of further growth in the whole region is evident,\u00a0<\/em>says\u00a0<strong>Ferdinand Hlobil.<\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_biggest_transactions_for_2017\"><\/span>The biggest transactions for 2017:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Poland:<\/strong><\/p>\n<ul>\n<li>Panattoni; Park: Panattoni Park Stryk\u00f3w II; Sonoco, 18\u00a0300 sq\u00a0m<\/li>\n<li>P3, P3 Piotrk\u00f3w, FM Logistic NIVEA, 18\u00a0200 sq\u00a0m<\/li>\n<li>MLP Group, Park: MLP Pruszk\u00f3w II, Avery Dennison, 13 300 sqm<\/li>\n<\/ul>\n<p><strong>Czech Republic:<\/strong><\/p>\n<ul>\n<li>Panattoni, Panattoni Park Plze\u0148 West, Sony DADC, 25 000 sq\u00a0m<\/li>\n<li>Prologis, Prologis Park Prague Rudn\u00e1, VAFO, 23,710 sq\u00a0m<\/li>\n<li>CTP, CTPark Teplice, PRO:DIRECT, 12,502 sq\u00a0m<\/li>\n<li>CTP, CTPark Brno, FEI, 12,146 sq\u00a0m<\/li>\n<\/ul>\n<p><strong>Hungary:<\/strong><\/p>\n<ul>\n<li>Prologis, Prologis Park Budapest \u2013 Gy\u00e1l, undisclosed client, 23,000 sq\u00a0m<\/li>\n<\/ul>\n<p><strong>Slovakia:<\/strong><\/p>\n<ul>\n<li>Park- Log Center Nov\u00e9 Mesto nad V\u00e1hom, Hellsa Slovakia Front Lightning, 5,000 sq\u00a0m<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The year 2017 saw the greatest amount of industrial space built in Europe in its history \u2013 more than 3.7 million sq\u00a0m. This represents a 68% increase over 2016 and a 55% increase over the existing record dating back to 2007 (an additional 1.2 million sq\u00a0m). The total industrial space in the region has increased [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":628,"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":[8],"tags":[151,62,2772,271,2903,63,213,2688,2959,2904,2855,64,172,2856,65,66,2960,82],"class_list":["post-627","post","type-post","status-publish","format-standard","has-post-thumbnail","category-real-estate","tag-cushman-wakefield","tag-czech-republic","tag-e-commerce","tag-ferdinand-hlobil","tag-fm-logistic","tag-hungary","tag-joanna-sinkiewicz","tag-leasing","tag-mlp-group","tag-mlp-pruszkow-ii","tag-panattoni","tag-poland","tag-prague","tag-prologis","tag-romania","tag-slovakia","tag-sony","tag-warsaw"],"jetpack_publicize_connections":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/627","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=627"}],"version-history":[{"count":0,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/627\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media\/628"}],"wp:attachment":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media?parent=627"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/categories?post=627"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/tags?post=627"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}