Warehouse properties continue to attract investors: CBRE

Despite the pandemic and uncertainty on the market, over €5 billion was invested in Polish commercial real estate in 2020. This result is about €2.1 billion lower than last year's, but demonstrates investor confidence in the attractiveness of the market, according to the CBRE report. Almost half of the amount spent was invested in warehouses. This is the first year that they have been so popular. The smallest amount, i.e. €656 million, was invested in commercial real estate. CBRE forecasts show that from the end of the first quarter of this year, the number of investments will grow.

“The uncertainty caused by the coronavirus has not shaken the Polish commercial real estate market. The value of investments declined year on year, but it was not surprising, given that the state of each sector is different. The pandemic increased investments in the warehouse market the most, the volume amounted in 2020 is record-high. Activities in the office market are partially limited, as many investors are still analyzing the situation, waiting for tenants to move. However, already in the first half of 2021, we expect returns to offices and an increase in transactions in this segment. Trade faces the most challenges, being the most affected by the pandemic restrictions,” Przemysław Felicki, director of the capital markets department at CBRE, said.

It was a particularly good year for warehouses, in which half of the total amount (€2.6 billion) was invested and more than twice as much as last year (€1.2 billion). There were several significant sales of larger portfolios in the market, ranging in value from €100-€500 million. According to CBRE experts, warehouse properties will also lead the way in the next 12 months.

(WBJ)