Rural bias

Warsaw continues to see high demand for warehouse space and is one of eight logistically strategic European cities in which take-up increased in 2007, according to a report published by Goodman International Ltd. Moscow saw the strongest growth in warehouse take-up, however, throughout Europe there is a strong trend of opening new warehouses and logistic parks outside the main cities.

Goodman's European Logistics Snapshot reported that the first three quarters of 2007 saw take-up grow by 17 percent y/y in the region, at around three million sqm. The figure for Moscow alone was one million sqm, over 400,000 sqm more than in the previous year. Warsaw came third on the list, with take-up totalling 350,000 sqm - 150,000 sqm more than in the Q1-Q3 period of 2006.

The situation in large German cities was less dynamic, however. According to Goodman's analysts, these cities faced falling demand as regional locations, close to motorways and offering more attractive land prices, attracted interest. The Netherlands is seeing a similar pattern, with significant take-up in the south of the country and limited growth in Amsterdam and Rotterdam. 

The report also stated that the supply of high-quality modern warehouses is still limited across Europe.

"With supply not exceeding demand, developers have become interested in speculative construction within the warehouse sector," said Rafał Bochenek, managing director at Goodman Poland.

"However, this won't be a large-scale trend, as only a few of the largest players on the market can afford the costs involved in such projects. Moreover, warehouses of this type will be built only in the best locations, while built-to-suit plants will more and more often be built in the regions," he said.

Anna Kapica-Harward