Demand on Poland’s industrial market surpassed supply at the end of 2015, hitting a new record of 2.2 million sqm of space and pushing the vacancy rate to 6.2 percent, down from 10 percent at the end of 2014, according to new data from JLL. Experts say this is mainly thanks to deals being signed in the country’s central locations, which means demand from warehouse tenants has shifted from the long-time leader, Warsaw. Logistics and retail operators continued to generate the biggest demand for warehouse space in Poland, and were responsible for a third of the deals signed last year.
As Poland’s rents are among the lowest in the CEE region (less than €2/sqm in some cases), they have likely already hit their low. Meanwhile, on-spec investments started growing last year and now represent 35 percent of all investments currently going up in the country. There is currently 774,000 sqm under construction.
Poland’s industrial market has another successful year ahead of it, experts predict. Investments within the sector are expected to rebound this year, as supply of new product is growing strong. “At least 30 investors are now now looking into the sector, including newcomers and investors already active on the market,” said Tomasz Puch, head of the Polish office and the industrial capital markets at JLL.
