CBRE issued its quarterly Big Box Poland 4Q2011 report, covering all aspects of the industrial market in Poland, including demand, supply, rents, yields and trends. The demand for modern warehouse space is continuously growing. The total leasing activity in 2011 amounted to over 1.86 million m² and exceeded the level registered a year before by about 30%. The largest deals were registered in Sector II around Warsaw, including renegotiations in Prologis Park Sochaczew, Panattoni Park Teresin and Prologis Park Janki. Over 60% of all 2011 leasing activity was reported in Sector III, of which over 330,000 m² in Silesia and about 250,000 m² in the Wroclaw region.
The most active are tenants from logistics and manufacturing sectors, mainly automotive and construction material producers.
The increase in demand has meant, the vacancy rate has dropped in comparison to 2010. The overall vacancy rate is now slightly above 10% while Warsaw (Sector I) and several Sector III regions such as Silesia, Central Poland, Poznan, North and Wroclaw are below 10%.
In 2011 completions reached nearly 350,000 m² of new leasable warehouse space, including about 100,000 m² in Silesia, recording approximately a 30% increase in comparison to 2010.
In terms of new supply, active developers started construction of about 600,000 m². Built-to-suit projects are increasingly popular among developers and tenants alike with approximately 40% of 2011 logistic constructions being tenant tailored schemes.
"Rental levels in 2012 are expected to remain similar to those recorded in 2011, especially in the locations with high vacancy levels, while in some other regions, such as TriCity, Silesia and Poznan, the market is moving in favor of landlords with increasing upwards pressure on rents. Prime headline warehouse rents in Warsaw are currently at 4.5-5.00/m²/month," said Patrick Kurowski, Head of Industrial, CBRE Poland.