Warehouse space under construction currently stands at 2.5 million sqm, more than half of which are speculative developments, i.e. without an assured tenant, according to CBRE data. During the year, the total warehouse space in our country grew by 12% and amounted to 30.5 million sqm at the end of Q3 this year, it was also reported.
“Despite the slight slowdown we saw in the warehouse market especially at the beginning of this year, Poland remains a very attractive destination for tenants. In addition, the latest figures for the third quarter of this year indicate that we then had a recovery that has a good chance of continuing. Compared to the second quarter, we have seen an increase in space under construction and significantly higher demand. The amount of warehouse space under construction is 17% higher and demand has grown by 56%. Considering the whole year 2023, the Warsaw region, Katowice and Wrocław are the most popular. Vacancy levels are rising, but this is the result of more speculative construction delivered to the market and taking time to be leased,” said senior consultant in the market research and analysis department at CBRE Anna Bielacka.
At the end of Q3 2023, the volume of warehouse space in Poland amounted to 30.5 million sqm. Compared to the same period last year, this is an increase of 12%, which puts our country among the fastest growing warehouse markets in Europe, it was also stated.
There is currently 2.5 million m2 under construction, which is 47% less than in the same period a year ago, but 17% more than in the second quarter of this year. More than half (53%) of the warehouses currently under construction are speculative constructions, which do not yet have guaranteed tenants at the construction stage, it was reported by CBRE.
“It is worth noting that the high level of construction recorded in 2022 was a result of the high number of investments in warehouses by the e-commerce sector, which we were still experiencing in pandemonium,” Bielacka emphasised.
Since the beginning of 2023, 3.1 million m2 of new warehouse space has been delivered to the market, 11% less than in the same period last year. The largest amount was delivered in the Warsaw region (539.1 thousand m2) and in the south-western part of Poland, i.e. in Katowice (471.7 thousand m2) and in Zielona Góra and Gorzów (437.3 thousand m2). The largest completed project is the Panattoni BTS Zalando in Bydgoszcz, which opened in Q1 of this year and is 146,000 sqm in size, the material mentioned.
The southwestern part of Poland also stood out in terms of demand. In 2023, 655,000 sqm was leased in Katowice and 578,000 sqm in Wrocław. In the Warsaw region, interest reached 780,000 m2. The total demand for warehouses recorded since the beginning of this year was 3.9 million m2. Although this is a quarter (25%) less than at the same time last year, comparing the third quarter results with the second quarter shows an increase of 56%. The majority of warehouse leases signed this year were new contracts (59%), with the share of renewals reaching 34%, according to the report.
The average vacancy rate in the warehouse market in Q3 2023 increased by 3.5pp y/y and 1pp q/q and stands at 7.7%. The lowest is in the Tri-City, Białystok and Rzeszów, where it fell below 2%. At the same time, in the region of Łódź or Wrocław, the percentage of unrented warehouse space reaches almost 10%. Rental costs also vary. In most of the main regional markets they amount to EUR 3.9-5.4 per m2 per month, while in the capital and its surroundings they reach EUR 7.5 per m2 per month, it was also indicated.
Source: CBRE and ISBnews
