What is the future for city warehouse space?

Logistics companies will soon start moving outside Warsaw which will in turn give space to smaller sector players looking for room close to the city center, claims CB Richard Ellis in its report concerning the storage space market. According to the report the new tendencies among companies with their own storage facilities is to outsource logistic services. The shift in market trends reflects the increase in warehouse space in Warsaw which grew in the final quarter of 2002 to 300,000 square meters, while the supply of storage space within 20km from Warsaw now is 500,000 square meters, only 20,000 square meters more than in 2001. At the same time the average rent fell and at the moment oscillates between $4 and $6 per square meter. One of the factors contributing to the rapid increase in logistic centers space was the demand on the side of sales networks looking for huge distribution centers for their supermarkets. (www.onet.pl) J.K.