Demand for logistics space high, but lower than in 2013 – JLL

The demand for warehouse space could reach 1 million sqm this year, down from 1.26 million sqm in 2013, according to a report by Jones Lang LaSalle, cited by the Polish Press Agency. “2013 closed with a great result, which could be difficult to repeat despite the current favorable economic conditions,” the report read. “Last year’s figure was strongly defined by Amazon entering the Polish market, and the probability that an investment of a similar magnitude is repeated is rather small. Therefore 1 million sqm is a rather optimistic scenario,” the authors of the report wrote. Last year’s result of 1.256 million sqm was 66.3 percent higher than net demand for warehouse space in 2012. JLL also expects an increasing amount of space to be constructed within built-to-suit schemes, with speculative investment making up a small portion of the entire space. According to the JLL report, 305,000 sqm of warehouse space was delivered in 2013, 41 percent less than a year before. Total logistics stock is currently at 7.445 million sqm. /bks/kw