The domestic market of modern logistics, warehouse and industrial space closed the last quarter with stock at the level of 27.4 million sq m. surface. It consisted not only of square meters on which logistics operations are performed, but also offices and social areas. At the end of September, 4.1 percent. of space in all buildings was vacant, which in comparison with the second quarter means a slight increase by 1 pp in the vacancy rate. In turn, compared to the period from July to the end of September 2021, the stock of vacant space decreased by 0.9 pp
Despite natural fears related to the economic and geopolitical situation, warehouse logistics still has good ground for development in Poland. Foreign investors see Poland as the main player in the region, which bases its competitiveness on land still affordable compared to its western neighbors, attractive rents, as well as reasonable construction costs and good employees. The fact that we are still in the sphere of interest is evidenced by the entry of an experienced developer ECE into Poland - points out Michał Rdzanek, Deputy Director of the Industrial and Logistics Department, BNP Paribas Real Estate Poland.
The German company ECE, known in Poland so far from operating mainly in the shopping center sector, launched its first project in Kąty Wrocławskie. It will build an international logistics center with an area of 80,000 sq m in Lower Silesia. sq m, which is planned to be launched in autumn next year. At the end of the quarter, work was underway on various construction sites for 3.9 million sq m. area, by about 330 thousand. sqm less than in the previous quarter. The two largest projects under construction were projects owned by Panattoni - BTS Zalando Bydgoszcz (146,000 sq m) and Panattoni Park Wrocław Logistics South Hub (115,000 sq m). The authors of the report emphasize that, as in the previous quarter, about half of the warehouses under construction already have their tenants.
Despite the uncertainty related to the slowing economy and geopolitical situation, as well as the effects of the pandemic, in Q3 the stock of domestic logistics, warehouse and industrial space increased by 1.16 million sq m. The list of the largest facilities commissioned included: Panattoni Park Sosnowiec III (82,000 sq m), 7R BTS Radzymin built for Żabka (67,500 sq m) and Panattoni Park Rzeszów North / BTS LPP Panattoni Park Rzeszów North (67,000 sq m). The continuing uncertainty related to the economic situation and the business environment influenced the mood of tenants, who in the third quarter decided to sign contracts for the lease of 1.5 million sq m. area (gross demand). This is 33 pp less than in the previous quarter and approximately 2 pp more than in Q3 2021.
The third quarter was marked by continued increases in rental rates. The only location that broke the upward trend was the regional market near Opole. The report by BNP Paribas Real Estate Poland shows that in the last quarter the average base rents exceeded the ceiling of EUR 4/sq m. per month, and rents grew the most in the eastern zone. Over 5 EUR/sq m per month must be paid by tenants who are interested in space in the Krakow region.
The end of the year should be the moment when rents reach an acceptable level for all parties. We also anticipate that, despite the cooling down of the market, we may see more speculative projects in the coming months, predicts Piotr Załęski, Deputy Director of the Industrial and Logistics Department, BNP Paribas Real Estate Poland.
The warehouse market, which has been on the rise for several years, attaches great importance to pro-ecological solutions, and the halls being built are becoming more and more environmentally friendly. This is noticed by both investors and tenants as well as their clients. Another important trend that BNP Paribas Real Estate Poland experts point out is electromobility. The electrification of fleets of logistics, courier and transport companies will entail the need to adapt the infrastructure of warehouse logistics facilities.
