Demand in warehouse market exceeded 1 mln sqm in Q1'20

The warehouse and logistics sector is not currently experiencing the negative effects of the epidemic. Demand in the first quarter of 2020 was at a very high level and amounted to 1.1 million sqm, according to the latest CBRE report.

Over 420,000 sqm of the new space was delivered to the market, thus the total supply in the country is currently 18.9 million sqm. CBRE experts point out that the demand for magazines is mainly driven by e-commerce companies, including online grocery shopping. Despite this, we can close the whole year with a slightly lower result than the previous three record years.

“We ended the first quarter of this year on the logistics and industrial market with a great result. There is a growing demand for e-commerce space, the last mile warehouses are developing in the areas of the largest Polish cities, the e-grocery sector, i.e. online grocery shopping, is also growing. This may in the future translate into even higher demand for warehouse facilities and, in the long run, intensive market development. However, the current situation does not leave us without challenges,” Beata Hryniewska, Director of the Warehouse and Logistics Department at CBRE, said.

The development of e-commerce and mail order requires improvement of supply chains, some commercial and automotive companies may strive to reduce rents, and construction of new facilities will probably be prolonged.

“Despite this, the warehouse sector will come out of the turmoil unscathed and we anticipate that at the end of the year we will exceed 20 million sqm of such space in the country,” Hryniewska summed up.

(WBJ)