Land market to be under pressure in 2023

According to Bartłomiej Krzyżak, Senior Director, Investment at Avison Young, from the warehouse developers' perspective, 2023 will be marked by very well-thought-out purchases. With the costs of financing constantly rising, construction costs changing, and investors pressing for discounts on the existing warehouse market, the land market will be the first to feel this accumulated pressure.

“Only well-prepared land with lease agreements signed by tenants has a chance to be the subject of a transaction and not just a non-binding option from developers regarding the purchase of land. Over the last 10 months, the pressure from the owners to raise prices has decreased. Those owners who did not show understanding towards the dynamically changing economic situation and represented the strategy of price inflexibility will, in many cases, have to be back on the market with their land,” Bartłomiej Krzyżak predicted.

(WBJ)