Warehouse vacancy rates fall in Europe and Poland

In the city regions across the European Union, the average vacancy rate has dropped to 6.3 percent, which is "comparatively low for this stage in the economic cycle," according to the report. In Poland, the rate has fallen to below 10 percent, which is much lower than it has been for several years. In the Central European region, prime industrial rents, (when averaged across regions) have fallen by 14 percent in the past year and by 19 percent over the past five. They have fallen most significantly in Warsaw, to zł.175 (€37) per square meter, because prices in Poland have historically been given in dollars and this currency has depreciated against the euro recently. Whereas average prime industrial land in an average Wester European city is €211 per square meter, in Central European regions it is €49. The highest industrial land values are in London, (at €675 per square meter) and the lowest in Bordeaux (at €20 per square meter) and Bucharest (at €25 per square meter). The 'King Sturge Occupier Eureka analysis' indicates that the most cost effective regions for occupiers are in Central Europe, particularly Warsaw, Bucharest, Budapest and Prague, as well as the regions in France, Belgium and large northern European ports. As far as yields are concerned, when averaged across Europe they have moved very slightly to 8.1 percent, from 8.2 percent a year ago. In Central Europe, prime industrial yields have moved to 10.4 percent, from 10.5 in 2003.