Total industrial stock in Poland now stands at 16.9 million sq m. Gross take-up in the first half of 2019 exceeded 1.6 million sq m. In addition, over 1.1 million sq m of new space was delivered to market and 2.2 million sq m is under construction.
Demand
In the first half of the year we observed a decrease in the share of new contracts and expansions in total demand. However, nearly 350,000 sq m of space was leased as part of renegotiations of existing contracts. One of the factors determining this situation was undoubtedly the expiration of lease agreements signed in 2013-2014, when the market was experiencing a period of intense development.
Tomasz Mika, Head of Industrial Poland, JLL
Demand for industrial space was visible throughout the country, with the highest tenant activity being recorded in the Warsaw Suburbs, where agreements for a total of 460,000 sq m were signed, followed by Wrocław - 276,000 sq m and Central Poland - 216,000 sq m. On markets outside the Big Five, gross demand was 240,000 sq m, of which new agreements accounted for 186,000 sq m. The development of Kielce, Podkarpacie and Białystok continues apace as developers secure more land for future projects in these areas
Maciej Kotowski, Research Analyst, JLL
| Tenant | Park | Area (sq m) |
| Pantos Logistics | Panattoni Park Wrocław XI | 60,500 |
| Pepsico | P3 Mszczonów | 58,500 |
| Gefco | Panattoni Wrocław X North Gate | 32,500 |
| Raben | A2 Warsaw Park Grodzisk | 30,100 |
| RTV Euro AGD | Goodman Warsaw Logistics Centre | 26,400 |
Source: www.magazyny.pl
Supply – just shy of 17 million sq m
During the first two quarters of the year new developments totaled more than 1.1 million sq m, the highest half-year result in the history of the market. This led to total stock standing at almost 16.9 million sq m.
Maciej Kotowski, Research Analyst, JLL
At the end of H1 2019, 2.2 million sq m of space remained under construction, of which the largest markets - Upper Silesia, Wrocław, Central Poland, Warsaw and Poznań – accounted for 86% of this number. It is worth noting that developers are bullish about the Polish market, which is confirmed by the volume of space built on a speculative basis - the share of which now totals 45%. This is particularly visible in the largest metropolitan areas - over 270,000 sq m was being developed on a speculative basis in Upper Silesia, followed by about 175,000 sq m in Warsaw and Wrocław, and 140,000 sq m in Central Poland. Large speculative investments can also be found in the Tri-City, Szczecin, Krakow and Kujawy.
Tomasz Mika, Head of Industrial Poland, JLL
Vacancy rate and rents
Investment market
The volume of industrial investment transactions concluded between January and June 2019 was EUR 374 million. This is the best ever H1 performance in terms of investment activity, and was helped by the inflow of Asian capital, especially from South Korea. Continued interest in the Polish market in the upcoming months, is reflected by ongoing transactions involving both individual objects and real estate portfolios.
Tomasz Puch, Head of Office and Industrial Investment, JLL
