CE warehouse market grew by nearly 300% over the past decade

In Central Europe there is now almost 18 million sqm of modern industrial space for leasing, while ten years ago that figure was just 4.6 million sqm. This volume is approaching the same levels as large Western European markets such as Germany, which currently has around 22 million sqm, according to a report by Cushman & Wakefield’s Central European Industrial Team. “The industrial sector in Central Europe is backed by above-average GDP growth – ten years ago the average for Central European countries was approximately 52 per cent of the EU average, but now it’s 68 percent. Central Europe has made great progress and is set to grow further,” said Ferdinand Hlobil, head of the Central European Industrial Team at Cushman & Wakefield. Vacancy for industrial property in Central Europe is now less than 8 per cent, and an inflow of new tenants has resulted in demand for new development. Five years ago vacant space accounted for approximately 15 percent, while in 2005 it was a little over 9 per cent. “Vacancy reflects the economy: the lower this indicator, the better the economy is doing. Falling vacancy indicates rising demand for leasing industrial property,” Hlobil added. “The vacancy rate fell by approximately 4 percentage points to 6.8% which is the lowest vacancy level recorded in Poland since the economic crisis,” said Tom Listowski, Partner, head of Industrial Department & CEE Corporate Relations, Cushman & Wakefield Poland. Over 1.4 million sqm of new leaseable warehouse space was built in 2014. Poland led the way in 2014 with more than 1 million sqm built. During the last ten years Poland built in excess of one million sqm in 2007, 2008 and 2014.