Industrial space take-up in Poland has now hit 1.6 million m² for the year, putting the sector on track for record breaking results in 2015, according to a new report by JLL.
Tomasz Olszewski, head of industrial CEE, JLL commented: “Despite the slight decrease in industrial demand in Q3 as compared to previous quarters, the sector's year -to-date results still add up to its best year ever. Since the beginning of the year, gross demand for warehouse and production space in Poland has totaled 1.6 million m2; 433,000 m2 of which was leased during Q3. If the take-up figures in Q4 are similar to those registered in the previous three quarters, we anticipate that Poland’s industrial market will register record-breaking demand for the third consecutive year.”
Since the beginning of the year, net demand has reached 1.07 million m2. The most active sectors in 2015 have been logistic operators (accounting for 30% of net demand), followed by retail chains (20%), light manufacturing (13%) and automotive companies (11%).
The largest lease transaction concluded during 2015 involved Leroy Merlin, which leased 53,000 m2 in Panattoni Park Stryków II. The most prominent renewal was by Goodyear, which renegotiated the lease of 46,000 m2 in Tarnów Logistic Park. Today Panattoni Europe, Poland's leader in the industrial property market, announced a contract with BENTELER Automotive, a manufacturer of automotive structures, engine and exhaust systems, chassis and modules. The company leased approx. 6,600 m2 at Panattoni Park Września with more than 4,700 m2 earmarked for the assembly and storage of chassis components for vans, offices will occupy more than 600 m2, and more than 1,300 m2 will be taken up by reloading tunnels.
Since the start of 2015, nearly 59% of tenant activity has been concentrated in just three regional markets – Central Poland (21%), the Warsaw Suburbs (20%), and Upper Silesia (17%).
With Poland the ninth largest European market in terms of supply, prospects for growth in take up are good; according to Jan Jakub Zombirt, associate director, research and consulting at JLL the industrial market gained 839,000 m2 of space since the beginning of the year with 392,000 m2 delivered in Q3 alone.
The largest volume was delivered in Wrocław (109,000 m2), followed by Upper Silesia (61,000 m2) and Poznań (51,000 m2). In the Tri-City developers delivered 39,000 m2; however, taking into account the markedly smaller supply in this market, this figure can be viewed as being on the high side. An additional 663,000 m2 of modern industrial space is also currently under development, 42.3% of which consists of projects developed on a speculative basis without binding pre-lease agreements.
Source: JLL
