Developers slow down investments in new warehouses

The warehouse market had an 8 percent vacancy rate last year. This is a significant increase from the record-high activity of developers in the previous two years. JLL experts therefore expect that there will be slightly fewer new investments on the market this year. With a stable level of demand from tenants, this should restore the warehouse market to equilibrium and stop the two-year rise in rents.

"The warehouse market in 2023 was marked on the one hand by rising interest rates, which caused capitalization rates to decompress, which had a big impact on the behavior of players on the warehouse market, but developers remained very active in terms of implementing new investments," Tomasz Mika, director of the Warehouse and Industrial Space Department at JLL, said.

"This increased the vacancy rate, which reached almost 8 percent at the end of 2023. At the same time, warehouse tenants also remained active, and we expect a result of around 4.5 million sqm," Tomasz Mika added.

(Newseria)