This article is a continuation of the Authors’ previous article, which was devoted to three potential forms of warehousing organization, namely in-house warehousing and the associated costs, and external/third-party warehousing in two variants: renting warehouse space and purchasing warehouse handling services for unit loads. Currently, the topic of third-party warehousing has been expanded in the context of renting warehouse space (including entire facilities or parts thereof).
Trends in warehouse space rental prices in Poland
Prices for renting warehouse space/warehouses in Poland are largely dependent on the geographical location and the region in which the warehouse is located. They fluctuate quite significantly. For this reason, a comparison of gross prices for renting 1 m2 of warehouse space per month, including operating costs, was compiled. In November 2008, data on warehouse space rental prices were collected for each voivodeship; they cover 30 different warehouses for each voivodeship (a total of over 400 analyzed warehouse rental offers). In the case of less industrially developed voivodeships, the number of warehouses was limited to about 20 (Lubelskie, Lubuskie, Opolskie voivodeships) or 10 (Podlaskie and Świętokrzyskie), due to difficulties in obtaining a sufficiently large amount of data. Due to difficulties in separating offers, class A and B warehouses were taken into account. After compiling the numerical values, average prices for renting 1 m2 (including VAT) in all voivodeships were obtained. The results are presented in Table 1.
The average rental price for 1 m2 of space is 14.21 PLN per month, the maximum is 25.18 PLN (177.2% of the average price) in the Mazowieckie Voivodeship, while the minimum is 9.30 PLN in the Warmińsko-Mazurskie Voivodeship (65.4% of the average price). It should be remembered that these are average prices; in practice, one can encounter prices higher than those stated, but also lower. Unit rental prices sometimes deviate significantly from average prices, as for example the prices for renting 1 m2 of warehouse space in the vicinity of Warsaw, which range from 15 to 50 PLN per 1 m2. To validate the calculations, extreme price values were rejected. It should also be assumed that warehouses in the region of Warsaw, Poznań, Wrocław, Łódź, and the Silesian agglomeration have a higher standard than others, due to the faster development of the warehouse economy in these regions. A graphic presentation of the above data is provided by the chart in Figure 1. Warehouse space rental prices in individual voivodeships were divided into four ranges to illustrate in which regions of the country they are the highest, in which they are the lowest, and in which they are comparable to the average level. The effect of this action is presented in Figure 2.
It can be observed that prices for renting warehouse space/warehouses are linked to the development of industry in a given region. The more developed a given area is, the higher the price, as evidenced by the extremely high prices in the Mazowieckie Voivodeship (77.2% higher than the average price on the Polish market), and especially in Warsaw. This region is characterized by the highest rents, a small amount of available warehouse space, and a specific structure of industries on the demand side. The main tenants here are logistics companies, retail chains, courier companies, food wholesalers, and distributors of household appliances and electronics. When looking for available warehouse space for rent, it can be observed that higher prices occur in the area of larger cities, such as the aforementioned Warsaw, or Poznań, Gdańsk, Wrocław, and Kraków. These are places where most of the class A logistics and warehouse centers in Poland are located.
The existence of large cities causes an inflation of the average warehouse space rental price determined for a voivodeship. This is related to industrialization concentrated in cities. If the industrialization of a given voivodeship is low, then warehouse space rental prices are also relatively low (in the Warmińsko-Mazurskie Voivodeship by 34.6%, in the Opolskie by 28.6%, and in the Podlaskie by 25.4% lower than the average warehouse space rental price in Poland). Currently (in the last few – 4-5 years), there has been a clear intensification of warehouse investments in our country. The number of locations where companies can build new warehouses is increasing.
Rental prices for space also depend on the features characterizing a given warehouse. Prices are higher in the case of modern, class A warehouses, equipped with heating, dust-free flooring, relatively high floor load capacity, ramps, loading docks, freight elevators, parking lots, monitoring, etc. Class B warehouses enjoy less interest because they require investment from potential tenants, who must reckon with high costs of adapting them to their own needs. Warehouses of a higher standard are characterized by a higher price in the same location; moving a warehouse away from the main economic centers of the country, while maintaining the same standard, causes a reduction in the rental price. It can be expected that interest in areas located outside large agglomerations will also increase when the condition of roads improves and their general expansion occurs, along with an increase in the number of expressways. Due to Poland’s accession to the European Union and the Schengen Area, the number of warehouses located in the south-western part of the country is increasing.
The price of renting warehouse space also depends on the size of the warehouse to be rented. Although, theoretically, renting a larger warehouse should be cheaper per unit due to the fact that all costs are spread over a larger area, we observe the opposite trend. Usually, the cost of renting warehouse space calculated per pallet unit is higher in larger warehouses. This may be due to the fact that large-area warehouses are often new and have a higher standard, which contributes to an increase in price.
Additionally, the price for renting warehouse space depends on the period for which the contract is drawn up. As a rule, contracts are concluded for a period of 3 to 5 years. The longer the duration of the contract, the lower the rental price. In 2008, 32% of lease agreements were signed for 5 years, 30% for 3 years, and only 2% for 10 years. The remainder of the agreements were concluded for a shorter period or for an indefinite period. In the case of agreements concerning a longer period and a larger warehouse area, price negotiations are possible. The main tenants of warehouse space are retail chains and logistics companies.
The article comes from the magazine “Logistyka” 2/2010.