Warehousing Market Sees Rapid Growth

In the first half of 2016, the market of warehousing and industrial space received 660 thousand sq. m. of modern usable floor area, which is a result better by 50 per cent as against last year’s analogous period, as shown by CBRE's latest data. The high demand for warehousing space remains unchanged, as more than 1.41 million sq. m. was leased over the first half of 2016. Also observed were low rates of unleased space – currently, the volume of empty developments in Poland amounts to 5.7 per cent. The high activity on the part of both developers and lessees allows one to expect that the year 2016 will be another record period – as it transpires from the latest report Poland Industrial Market View – the Market of Industry and Logistics in Poland after 2016 Q2 delivered by CBRE. Developers' activity is centred in the regions of Poland most mature business-wise. Wrocław is one of the five domestic leaders in terms of warehousing and industrial development. – The Polish warehousing and industrial development market is growing at a very rapid pace. The demand after the first half of 2016 was 7 per cent higher than in the analogous period of last year, with 70 per cent of lessees signing new lease agreements or increasing their space –says Patrick Kurowski, Director of the Warehousing and Industrial Space Department at CBRE. – Developers are actively responding to the market's needs. Currently, about 750,000 sq. m. is under development, over half of which is being developed speculatively, i.e. without the prior security of lease agreements. Analysing lessees' activity and taking into account developers' plans, we expect that the end of this year will see a record demand. Despite that, lease fees remain unchanged. The biggest interest observed now is in industrial and fulfilment space, leased for around 2.40-3.90 EUR per sq. m. monthly. Having said that, it is the capital city that remains the most expensive location, with lease fees amounting to 4.00-5.50 EUR per sq. m. monthly. Source: http://www.propertynews.pl Photo: Patrick Kurowski, Director of the Warehousing and Industrial Space Department at CBRE.