CB Richard Ellis has issued its quarterly Big Box Poland Q2 2009 report, covering all aspects of industrial market in Poland, including demand, supply, rents, yields and trends.
Despite a recession registered in majority of global economies, the Polish economy is still better positioned than most European countries. In H1 2009 total take-up exceeded 450,000 m² 40% less when comparing with H1 2008.
"An analysis of occupiers shows that the demand for warehouse space is now generated by companies operating in the sectors less vulnerable to the market conjuncture (FMGC, pharmaceuticals food, etc.). However the average deal size decreased and oscillated around 5,000 m²," said Joanna Mroczek, Director of Research and Consultancy department at CB Richard Ellis.
The total stock of modern warehouse space, as of the end of H1 2009, amounted to 6 million m². The number of newly completed projects still remained high since the beginning of the year developers delivered over 800,000 m² of new warehouse space. Developers, expecting lower demand in the next few quarters, have limited the number of buildings planned speculatively and are looking only to build-to-suit projects. Currently only eight industrial projects are under construction across the country.
The supply of new space had a significant impact on the vacancy rate, which increased since the beginning of 2009 from 10% to 19%.
The highest rents were recorded in Warsaw submarket and have reached 6.00/m²/month. In remaining submarkets rental levels currently oscillate at 3.254.00 /m²/month. In some regions the offered effective rates are 30% lower than the headline ones.
The investment market is still restrained by the global financial crisis. So far in 2009 there were no transactions registered in this sector. Along with the financial turmoil the yields increased and at the moment they are estimated at 8.75 9.00% for prime products.