Advisory firm JLL has published a report that analyses Poland’s industrial market at the end of Q4 2021, with the main takeaways being:
- Net take-up of warehouse space in Poland hit a record 5.4 million sqm, with 70% located in the Big Five[1] markets.
- Over the last two years, the e-commerce sector's share in demand for industrial space in Europe has increased from 12% to 23%. In Poland, players from this sector leased 1.3 million sqm of industrial space in 2021.
- In an attempt to keep up with demand, developers completed 2.9 million sqm of industrial space, the majority of which was located in Poznań and Upper Silesia. A record 4.3 million sqm is under construction.
- Developers are increasing the share of speculatively built space (47% at the end of 2021) in response to the projected high demand from tenants.
Western Poland steals the show
Poland's major advantages remain the very competitive lease rates in comparison to other European countries, the ease of implementation of development projects and the possibility of rapid transportation thanks to a much-improved road network. New routes allow for the efficient distribution of goods to Poland’s western and southern borders, as well as within the country itself. This is one of the most important factors in attracting investment to Poland,
emphasises Paulina Dziubińska, Senior Director at Industrial Agency, JLL.
Vacancy fragmentation drives new supply
At the end of December, there was over 4.3 million sqm under construction, with 46.6% being unsecured. Space being built on a speculative basis, along with vacant space now totals in excess of 3 million sqm of industrial space in the Polish market, is set to be available in the next few months,
comments Tomasz Mika, Head of Industrial Poland, JLL.
Investors look for industrial real estate assets
Record prices in the warehouse sector are a result of increased interest in this investment product, which is currently in short supply. There is fierce competition in the market for projects up for sale, which looks set to continue in 2022,
explains Sławomir Jędrzejewski, Head of Industrial Investment, JLL.
[1] Warsaw, Upper Silesia, Central Poland, Wrocław, Poznań