Total modern warehouse stock exceeded 10.3 million sqm in Q1 - C&W

Q1 2016 saw a further increase in leasing and development activity on the industrial and warehouse property market in Poland, according to the latest report by Cushman & Wakefield, a global real estate advisor. Total modern warehouse stock has exceeded 10.3 million sqm. The demand for warehouse space remains strong, with 637,000 sqm leased in Q1 2016. This constitutes an increase by ca. 8 percent compared to the same period last year. The core warehouse markets noticed considerable letting activity, especially in Upper Silesia (144,000 sqm leased) and the Warsaw Suburbs (140,000 sqm) Development activity on the warehouse market remains robust. The end of Q1 2016 saw almost 783,000 sqm of space under construction. More than 75 percent of new investments are located in the major industrial markets including Poznań, Warsaw Suburbs, Central Poland, Wrocław and Upper Silesia. Regions such as Kraków, the Tri-City and Lublin are also witnessing further development interest. Due to the high levels of demand for industrial space, vacancy rates remain low. The rate recorded at the end of March was approximately 5.9 percent, which is ca. 0.4 pp. less than a year ago. Most vacant space is located in Warsaw and its suburbs. The highest rental levels recorded are still in Warsaw ( 4.00-5.40/sqm/month), and the lowest in the region of Central Poland (€2.40-3.95/sqm/month) and in the capital’s suburbs (€2.50-3.80/sqm/month). Rental rates in the remaining regions stood at EUR 2.50-4.00/sqm/month, depending on location.