E-commerce leases to reach 700,000 sqm by 2020 - report

New lease agreements signed by e-commerce firms are on track to hit 700,000 sqm by 2020, according to a report complied by advisory company JLL and industrial space developer Prologis. The report analyzes how the development of e-commerce in Poland affects the strategies of retailers and logistics operators in adjusting their supply chain to market requirements and, as a result, generate changes on the warehouse market. The report includes results from a survey conducted among companies from the e-commerce sector. "E-commerce is likely to become the key driver in the growth of demand for logistics space in the next few years. Assuming a stable growth rate of e-commerce at 15% per annum and potential for its further development, we forecast that by 2020 companies from this segment will lease up to 700,000 sqm of warehouse space," said Jan Zombirt, Associate Director, Strategic Consulting at JLL.  He added that the demand will stem from both international newcomers commencing operations in Poland and the organic growth of the domestic market. Such factors as access to the HR pool, attractive labor costs, and relatively low overheads of leasing industrial properties give Poland a "golden" opportunity to attract new players from the e-commerce market, the report read. Underpinning this is the strong presence of companies already operating here and the dynamic organic growth of online sales.