Colliers International, a leading advisor in the commercial real estate market, has presented the results of the latest report on the warehouse real estate market in Poland, summarizing the status at the end of the third quarter of 2011.
In the first three quarters of 2011, nearly 255,000 sq m of modern warehouse space was delivered to the market. In the third quarter, over 112,000 sq m were completed across six projects. The current total stock of warehouse space in Poland is estimated at over 6.66 million sq m.
– The third quarter proved to be a record-breaking one in terms of transaction volume, which amounted to over 550,000 sq m, representing a 9.5% increase compared to the second quarter, 38% compared to the first quarter of 2011, and as much as 45% compared to the same period in 2010. – says Maciej Chmielewski, Partner in the Industrial and Logistics Department at Colliers International. New leases accounted for 67.6% of total transactions, while expansions and renegotiations accounted for 7.3% and 25.1%, respectively. Compared to the previous quarter, the share of new lease agreements increased by approximately 17.5% and expansions by 7%, while the number of renegotiated contracts fell by nearly 20%. The vacancy rate decreased by over 3% compared to the previous quarter and stood at 11.3%.
Warehouse rents generally remain at a stable level; however, in regions where the vacancy rate is falling, an upward trend is already visible.
Currently, over 330,000 sq m of warehouse space is under construction, of which approximately 40% should be delivered by the end of this year. It is worth noting that 66.5% of the space under construction is already leased. Speculative projects still have a small share in the market, although given the fact that the vacancy rate continues to show a downward trend, we can expect an increase in the number of planned investments, largely speculative in nature. Markets with low vacancy rates and low total supply of warehouse space, such as Krakow, will continue to be of interest to developers, while for tenants, BTS (Build-to-Suit) projects will be an interesting option.
– We anticipate further growth in demand both in the Warsaw zones and in other regions. – adds Maciej Chmielewski – It can be expected that rental rates, due to the decreasing vacancy rate in most markets, will show an upward trend in the coming few quarters.