May 29, 2019
Warehouse and Industrial Market in Poland in Q1 2019
- Warehouse and industrial market in Poland in Q1 2019 continues dynamic development. Due to low unemployment on the main markets, new locations keep emerging. Projects dedicated for urban logistics are on the rise.
- At the end of March 2019 modern stock of warehouse and industrial space amounted to 16.2 million sq m, having increased by over 0.5 million sq m in Q1 2019. Gross take-up almost reached 1.0 million sq m. Space under construction again exceeded a barrier of 2.0 million sq m. Despite fast growth of the market, supply and demand remain in balance. Vacancy rate stays at a low level and rents, after some increase observed in 2018, now are stable.
- Warsaw maintains its position as the largest market having surpassed 4.0 million sq m of stock in Q1 2019. Upper Silesia is the second largest market (2.62 m sq m), followed closely by Central Poland (2.6 m sq m), which almost caught up with Upper Silesia.
- In Q1 2019 506,100 sq m of new space was added to the market, 28% up y-o-y.
- Development activity in Q1 2019 increased compared to the end of 2018 and again passed 2.0 million sq m, reaching 2.1 million sq m.
- Gross demand in Q1 2019 amounted to 965,200 sq m, down by 21% y-o-y. The largest volume of take-up was noticed in Warsaw, where almost 284,400 sq m was taken (35%more than a year before).
- Net absorption during the first three months reached 418,200 sq m, down by 12% y-o-y.
- At the end of March 2019 vacancy rate remained at a low level and stood at 5.5% (up by 0.7 pp y-o-y).
- In Q1 2019, after an upward trend seen in 2018, rents stabilised. Headline rents range between EUR 2.70 m sq/month and EUR 4.20 sq m/month for BIG BOX units and up to EUR 5.35 sq m/month for SBU.
- We expect a further fast development of the warehouse and industrial market in Poland in 2019.
