Gross take-up of industrial space was 3 million sqm in 2016, out of which net demand amounted to 2.2 million sqm, according to a recent JLL report. “In 2016, demand on the industrial market in Poland hit an all-time high. … GDP growth and the gradually increasing importance of Poland as an e-commerce hub for Western Europe were also key factors in stimulating the growth in demand. This, coupled with one of the lowest rental costs in Europe and low interest rates, has enabled Poland to become one of the most sought-after industrial and logistics locations on the continent,” said Tomasz Olszewski, head of Industrial CEE, JLL.
In 2016, the most sought-after location was Warsaw Suburbs, where lease agreements amounted to 745,000 sqm. Interestingly, on the back of transactions by two e-commerce giants (Amazon and Zalando), which signed two leasing transactions for BTS projects totalling 291,000 sq m, the Szczecin region recorded a notable rise in tenant activity.
“Traditionally, companies classified as retailers and logistics operators have been the most active market players on the demand side. In 2016, they jointly accounted for 59% of total net take-up. The steady growth of the manufacturing and automotive sectors is also worth highlighting”, added Tomasz Olszewski.
Last year, the vacancy rate on the Polish industrial market stabilized at 6.1 percent. “It is worth pointing out that despite 1.2 million sqm of new space being delivered, the overall vacancy rate was not markedly affected, as a significant number of these projects were delivered in the BTS (build-to-suit) formula. Overall the industrial space available for lease currently stands at approx. 700,000 sqm,” explaind Jan Jakub Zombirt, associate director, Research and Consulting at JLL.