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According to a report titled "Occupier Insight - Warehouse and industrial market in H1 2023," published by the consulting firm Newmark Poland, the total stock of modern warehouse and industrial space in Poland exceeded 30 million sqm in the second quarter of 2023.

Wroclaw among the largest transactions in the warehouse-industrial market

Among the largest transactions finalized between January and the end of June 2023 were Tyco Electronics Polska's renewal of a 56,000 sqm contract at Panattoni Park Szczecin I (Q1), the leasing of 55,000 sqm. at Panattoni Park Wroclaw Logistics South Hub by Shein (Q1), the construction of a 46,000 sqm BTS facility for BestSecret by Panattoni in the Lubuskie region (Q2), and a new contract by a confidential tenant for 43,300 sqm at 7R Park Wroclaw West II (Q2).

Investors remain cautious in the warehouse-industrial market

Both tenants and developers remain cautious in their decision-making, which translates into a decline in demand and the volume of space under construction. At the same time, the amount of space available in existing warehouse facilities is increasing

Agnieszka Giermakowska, Director of the Market Research and Advisory Department, ESG Leader, Newmark Poland.

At the end of the second quarter of 2023, the total stock of modern warehouse and industrial space in Poland exceeded the 30 million sqm threshold and now stands at 30.6 million sqm, up 17.1% compared to the same period in 2022.

Between January and June, developers delivered nearly 2.6 million sq. m. of warehouse space, with more than 73% (over 1.9 million sq. m.) in Q1 2023.

- Development companies remain cautious about starting new warehouse projects. At the end of June 2023, 2.13 million sqm was under construction, a level similar to that recorded in the previous quarter (-1.3%), but down more than 51% compared to the same period last year, says Agnieszka Giermakowska, Director of Market Research and Advisory Services, ESG Leader, Newmark Poland.

Another quarter in a row saw a slowdown in tenant activity. In the first half of 2023, tenants leased a total of more than 2.2 million sqm, down 41.5% from a year earlier.

Tenants are now taking longer to sign leases due to, among other things, rising overall warehouse rental costs, including operating costs, and the need to reorganize supply chains. In addition, as part of optimizing operating costs and reducing their carbon footprint, they are also increasingly deciding to consolidate several locations into one closer to the end customer

Jakub Kurek, director of the Industrial and Warehouse Space Department at the consulting firm Newmark Polska.