CBRE opens its upbeat Big Box
Stock largely increased across the board and although take-ups were slightly down, vacancy rates also fell in general.
This is according to CB Richard Ellis' (CBRE) latest industrial market 'M2 Big Box' report, which paints a very active picture for the first quarter of 2005.
There is currently 1.3 million sqm of developer led logistic and warehousing stock in Poland. This stock increased by 65,000 sqm in Q1 this year, as compared to the last quarter of 2004, with some 125,000 sqm of new buildings breaking ground. Construction is not set to slow, however, with a record 330,000 sqm of industrial space currently under construction.
Take-up is what most investors will be looking at, and 66,000 sqm was filled in Q1, which is a record for this time of year. However, take-up was down by 28.9 percent on the last quarter of 2004, which CBRE attributes to seasonal factors.
Many developers are now signing pre-lease agreements and the comfort zone of a growing market for build-to-suit projects has had a knock-on effect, with developers more willing to build speculative space. However, build-to-suit projects continue to dominate the market.
The CBRE report splits the sector into three categories: warehouse and business space in inner and greater Warsaw; logistics parks in the Warsaw region; and logistics parks across Poland.
The first group are warehouse and warehouse-type business parks of Class A and B only, located within 20km of central Warsaw. This region is enjoying good take-up rates and a fall off in vacancy. Total warehousing stock in this sector came to 586,000 sqm in Q1, with one new project of 15,000 sqm completed and 10,000 sqm of new buildings getting underway. There is currently 56,000 sqm of warehousing space under construction with 15,000 sqm of space leased in the first quarter, an 18.56 percent increase on the end of last year. Vacancy rates also dropped to 6.04 percent. Headline rents hovered between EUR 2.70-5 (zł.11.26-20.85) per sqm/month.
The second sector is logistics parks between 20km and 100km of Warsaw city center. Total stock amounted to 500,000 sqm, with a major increase predicted in the near future. There were no completions in the first quarter, with 140,000 sqm currently under construction. Net take-up amounted to 20,000 sqm, a serious drop of 41 percent on Q4 2005, but despite this the vacancy rate fell to 8.69 percent. Rents varied between EUR 2.90-3.40 (zł.12.09-14.12) per sqm/month.
The third sector is logistics parks located around the major cities of Poland excluding the Warsaw region. Total stock comes to 310,000 sqm, with two new projects of 50,000 sqm developed and 70,000 sqm of new buildings breaking ground. Some 130,000 sqm of space is under construction. Take-up was highest in this sector, at 30,000 sqm, which was a drop of 32.9 percent on Q4 2005. No new transactions were signed and vacancy rates increased slightly to 1.94 percent. However, at the end of last year there was no available logistic space in this sector, and demand continues to be strong, with headline rents of between EUR 3.20-3.75 (zł.13.35-15.64) per sqm/month.
This is according to CB Richard Ellis' (CBRE) latest industrial market 'M2 Big Box' report, which paints a very active picture for the first quarter of 2005.
There is currently 1.3 million sqm of developer led logistic and warehousing stock in Poland. This stock increased by 65,000 sqm in Q1 this year, as compared to the last quarter of 2004, with some 125,000 sqm of new buildings breaking ground. Construction is not set to slow, however, with a record 330,000 sqm of industrial space currently under construction.
Take-up is what most investors will be looking at, and 66,000 sqm was filled in Q1, which is a record for this time of year. However, take-up was down by 28.9 percent on the last quarter of 2004, which CBRE attributes to seasonal factors.
Many developers are now signing pre-lease agreements and the comfort zone of a growing market for build-to-suit projects has had a knock-on effect, with developers more willing to build speculative space. However, build-to-suit projects continue to dominate the market.
The CBRE report splits the sector into three categories: warehouse and business space in inner and greater Warsaw; logistics parks in the Warsaw region; and logistics parks across Poland.
The first group are warehouse and warehouse-type business parks of Class A and B only, located within 20km of central Warsaw. This region is enjoying good take-up rates and a fall off in vacancy. Total warehousing stock in this sector came to 586,000 sqm in Q1, with one new project of 15,000 sqm completed and 10,000 sqm of new buildings getting underway. There is currently 56,000 sqm of warehousing space under construction with 15,000 sqm of space leased in the first quarter, an 18.56 percent increase on the end of last year. Vacancy rates also dropped to 6.04 percent. Headline rents hovered between EUR 2.70-5 (zł.11.26-20.85) per sqm/month.
The second sector is logistics parks between 20km and 100km of Warsaw city center. Total stock amounted to 500,000 sqm, with a major increase predicted in the near future. There were no completions in the first quarter, with 140,000 sqm currently under construction. Net take-up amounted to 20,000 sqm, a serious drop of 41 percent on Q4 2005, but despite this the vacancy rate fell to 8.69 percent. Rents varied between EUR 2.90-3.40 (zł.12.09-14.12) per sqm/month.
The third sector is logistics parks located around the major cities of Poland excluding the Warsaw region. Total stock comes to 310,000 sqm, with two new projects of 50,000 sqm developed and 70,000 sqm of new buildings breaking ground. Some 130,000 sqm of space is under construction. Take-up was highest in this sector, at 30,000 sqm, which was a drop of 32.9 percent on Q4 2005. No new transactions were signed and vacancy rates increased slightly to 1.94 percent. However, at the end of last year there was no available logistic space in this sector, and demand continues to be strong, with headline rents of between EUR 3.20-3.75 (zł.13.35-15.64) per sqm/month.
