Warehouse market still on a wave

In Q3 this year an area of almost 350,000 sqm was completed, as a result of which the total supply amounted to close to 11 mln sqm at the end of September 2016, states Colliers’ ‘Market Insights, Warehouse Market’ report for Q3 of this year. In the July–September 2016 period, 133 contracts were signed on the Polish warehouse market, as a result of which over 930,000 sqm was leased. This constitutes the highest quarterly figure since the end of 2014 (app. 960,000 sqm in Q4 2014).

Development activity was similar to that of the same period last year. Colliers’ analysts recorded the greatest development activity in Upper Silesia, where a warehouse area of 86,000 sqm was completed – app. 25 pct of the total area built in Poland in this period. High levels of supply were also registered on the Warsaw market (a total of 74,000 sqm in its three zones), Poznań (47,000 sqm) and Kraków (46,000 sqm). Slightly lower supply was registered on Wrocław and the TriCity markets.

According to Colliers, the largest warehouse facilities completed in the analysed quarter included: Panattoni Park Kraków (34,500 sqm), another building in Segro Logistics Park Poznań Komorniki – BTS Tesco (30,000 sqm and Panattoni Park Gdańsk II (24,000 sqm) and Wrocław V (25,000 sqm). In Q3 they registered a considerable growth of demand – by 35 pct compared to the previous quarter last year. The most space was leased in Upper Silesia, where leases were signed for 224,000 sqm. More than 160,000 sqm was leased on the Szczecin market (Zalando – 130,000 sqm). Tenants from the logistics sector accounted for the largest share in the demand (20 pct). Colliers registered a significant percentage of e-commerce leases, as much as 14 pct of the demand, mostly due to a contract signed by Zalando.

An area of 625,000 sqm was still available on the markets covered by the analysis at the end of September 2016, when the vacancy rate amounted to 5.7 pct. The most vacant space was available in Eastern Poland, where the average vacancy amounted to 10.2 pct and on the TriCity market (9.75 pct). The lowest vacancy was registered in Central Poland and Kraków, while all existing space in Szczecin, Toruń and Bydgoszcz were leased out at the end of Q3. A warehouse area of 823,000 sqm was under construction in Poland at the end of Q3. Rents have stabilised since the end of Q2 of this year.

“We expect that the smaller markets will continue to enjoy great popularity, continuing to strengthen their position on the warehouse map of Poland. It is also worth pointing out that access to a qualified labour force and the proximity of academic centres are the main factors determining the choice of a given location by production companies more and more frequently,” argues Maciej Chmielewski, a partner at Colliers International and director of the logistics and industrial department.