Warehouses are at a premium

The record demand for warehouse space, reported last year, continues. There are no vacant warehouses, despite the fact that the largest amount of logistics space in the history of our market is currently under construction in our country.

“In the warehouse sector, we have been looking at the high activity of developers for several years. The motivation for investors to act is the constantly growing absorption of the Polish market. Last year, tenants leased a record number of 7.4 million sqm of warehouse spaces. The demand increased by over 40 percent, compared to the previous year. The sector is growing at a pace we have never seen before. The annual market growth exceeded 15 percent. As much as 4.7 million sqm. of warehouse space remains in the country. In the EU, only Germany is building more warehouses than Poland,” Bartłomiej Zagrodnik, Managing Partner / CEO at Walter Herz, said.

“The lack of immediately available warehouses means the growing pressure to increase rents. Already at the end of 2021, we could see a slight increase in the initial rental rates, generated by the rising costs of building projects. Opportunities for an increase in profitability in the warehouse segment in Poland are also created by the need to start new logistics destinations in our region in connection with relocating business from the conflict zones. Investors leaving Russia may also generate demand here,” Bartłomiej Zagrodnik explained.

(WBJ)