Historic high warehouse space leased in H1 2016, rents remain lowest in Europe
15:55
The amount of warehouse space leased over the first six months of 2016 reached a record-breaking level of 1,312,000 sqm, according to a recent report by JLL.
“At the end of H1 2016 some 742,000 sqm of warehouse space was under construction, 51 percent of which was being built speculatively, i.e. without existing pre-leases,” said Tomasz Olszewski, head of Warehouse and Industrial Department at JLL.
According to Olszewski, what is driving up the demand for warehouse space is not only the steady GDP growth. It is the low rents that are attracting companies to Poland. “Poland has one of the lowest warehouse rents in Europe.” Effective rents in most core locations are between €2 and €3 per sqm per month.
He added that as long as developers have appetite to build, rents will likely remain low. “And the appetite to build will continue as long as there is capital interested in buying real estate. Only after interest rates go up, will there be a possibility of rent growth,” he explained.
The vacancy rate in the warehouse segment stood at 6.1 percent, with several local markets having zero level of vacancies, including three developing markets: Szczecin, Bydgoszcz/Toruń and Opole.
