Polish logistics and industrial property lettings and supply both surged to another record in 2017, with leasings running at 4.6m sqm and half of this, 2.3m sqm, delivered as new supply into the market, says adviser Colliers International. 2018 promises again to be strong.
In demand, Warsaw and the central Poland region led the market, both with lettings of over 1m sqm last year. Vacancies declined in both regions – to 6.1% from 6.4% in Warsaw, and to a fractional 0.3% from 2% in the Łódź region, the lowest level nationwide. Upper Silesia, with almost 940,000 sqm leased, came into third place, with vacancies at year-end 2017 also lower.
In new space, the largest share, 460,000 sqm, was delivered in the Warsaw market so that by year end total supply in the three zones of the Polish capital reached over 3.5m sqm. In second place, both in new supply and market size, was Upper Silesia which added 408,000 sqm to take total industrial stock over 2.5m sqm. Other markets where developers showed strong activity were Poznań (almost 212,000 sqm), Central Poland (207,000 sqm) and Wrocław (162,000 sqm).
"In all three regions, companies from the e-commerce sector had a large share in demand,” said Maciej Chmielewski, Colliers International director of Industrial and Logistics Agency in a report. These type of tenants dominated in central Poland. “Distribution companies were also very active in Mazovia, and production companies in the Katowice region," he added.
Currently, over 1.3m sqm of industrial space is under construction across Poland, most of which is being built in Upper Silesia – 398,000 sqm - in Warsaw – 227,000 sqm - and in central Poland - 240,000 sqm. These locations will still enjoy the greatest interest among tenants and developers, but the increase in the activity of both groups is also visible in western Poland thanks to the S3 highway, Colliers International said.
Looking ahead this year, the firm expects further development of smaller industrial markets such as Białystok and Kielce. In the former, Panattoni is set to build three warehouses in one industrial park totalling 40,000 sqm. Tomasz Kasperowicz, Colliers International director of Industrial and Logistics Agency, said: "3PL, e-commerce and retail will hold dominant positions among sectors going forward, while access to qualified labour and the proximity of academic centres will remain decisive factors in choosing locations." This year he expects increased interest in build-to-suit or even build-to-own projects.