CB Richard Ellis issues industrial market summary
The important conclusions of the survey include that the market performed strongly in the first six months of 2004, with net take-up amounting to 89,000 square meters. This represents a 52.6 percent increase compared to the second half of 2003. The most attractive locations for launching a new development were found to be around Łódż, Poznań, Wrocław, Silesia and Tri-City. There is also a growing trend for foreign direct investors to invest in the Polish market after EU accession.
The analysis has focused on both developers' existing and proposed schemes and is divided into three sectors. Sector 1, which is the space in inner and Greater Warsaw, located within a 20 kilometer radius from the capital's center, consists of a total of 538,381 square meters of warehousing stock, 365,781 square meters of which is class A standard. "There has been very little new stock coming onto the market in this sector for the last two years, due to high land prices prohibiting speculative development," states the report. Stock in 2003 only increased marginally from the previous year by 2.18 percent and only 11,000 square meters was completed. Base headline rental rates now range from between R2.70 and R5 per square meter, depending on the standard of scheme and lease term agreements.
Sector 2 is defined as the area beyond a 20 kilometer radius from Warsaw city center but within a 100 kilometer radius of the same district. Stock in this sector amounted to 456,400 square meters at the end of Q2 this year and increased by 57,400 square meters compared to the end of 2003; net take up was up 12.7 percent on the same period. "The cumulative take-up amounts to 395,510 square meters as at the end of June 2004," states the report. "Rental rates by year-end 2003 experienced a year-on-year fall of around 4 percent, although they appear to have stabilized in 2004," it continues. Base headline rental rates now range between R2.90-3.40 per square meter.
Sector three covers logistics parks in Poland's regions and major cities excluding Warsaw and the Warsaw region. Here, stock amounted to 206,100 square meters at the end of Q2 2004 and increased by 22,000 square meters, (11.9 percent) from the end of 2003. Though there was a reduction in new starts compared to 2003, this "is not viewed to be a sign of inactivity in this sector but rather a pause in construction before new schemes will commence," states the report, adding that, "it should be noted that investors and developers in Sector 3 have secured plots for further phases of existing and new projects. CB Richard Ellis predicts that this sector will expand the most in coming years." Though rental rates have experienced a year-on-year fall of around 7 percent, most appear to have stabilized and are currently at a headline level of R3.20-R3.75 per square meter.
The analysis has focused on both developers' existing and proposed schemes and is divided into three sectors. Sector 1, which is the space in inner and Greater Warsaw, located within a 20 kilometer radius from the capital's center, consists of a total of 538,381 square meters of warehousing stock, 365,781 square meters of which is class A standard. "There has been very little new stock coming onto the market in this sector for the last two years, due to high land prices prohibiting speculative development," states the report. Stock in 2003 only increased marginally from the previous year by 2.18 percent and only 11,000 square meters was completed. Base headline rental rates now range from between R2.70 and R5 per square meter, depending on the standard of scheme and lease term agreements.
Sector 2 is defined as the area beyond a 20 kilometer radius from Warsaw city center but within a 100 kilometer radius of the same district. Stock in this sector amounted to 456,400 square meters at the end of Q2 this year and increased by 57,400 square meters compared to the end of 2003; net take up was up 12.7 percent on the same period. "The cumulative take-up amounts to 395,510 square meters as at the end of June 2004," states the report. "Rental rates by year-end 2003 experienced a year-on-year fall of around 4 percent, although they appear to have stabilized in 2004," it continues. Base headline rental rates now range between R2.90-3.40 per square meter.
Sector three covers logistics parks in Poland's regions and major cities excluding Warsaw and the Warsaw region. Here, stock amounted to 206,100 square meters at the end of Q2 2004 and increased by 22,000 square meters, (11.9 percent) from the end of 2003. Though there was a reduction in new starts compared to 2003, this "is not viewed to be a sign of inactivity in this sector but rather a pause in construction before new schemes will commence," states the report, adding that, "it should be noted that investors and developers in Sector 3 have secured plots for further phases of existing and new projects. CB Richard Ellis predicts that this sector will expand the most in coming years." Though rental rates have experienced a year-on-year fall of around 7 percent, most appear to have stabilized and are currently at a headline level of R3.20-R3.75 per square meter.
