The development of e-commerce has a growing impact on the development of the industrial real estate sector. The origins can be found in the change of our shopping habits – the popularization of e-commerce has revolutionized logistics operations in warehouses. It's just the tip of the iceberg! See how e-commerce is changing the Polish warehouse market.
Global e-commerce remains driven by such factors as consumers’ changing shopping habits, the growth of cross-border retailing and an ever easier access to technology. In 2018, the number of customers on the web worldwide was close to 1.8 billion people, and in 2019 it is expected to exceed 1.9 billion (source: Admitad). This is almost a quarter of the world population. The total volume of online retail sales is expected to step over USD 3 trillion in 2019 and the share of e-commerce in total retail sales can grow to 13.7%, while in 2017 it barely exceeded 10% (source: Statista).
In 2018, the Polish e-commerce market was worth more than PLN 51 billion, posting an annual growth of 21% (source: Business Insider, PMR, Bisnode Polska). The penetration rate of online shopping (share of total retail sales) of close to 5% is expected to reach 10% in the next two or three years (source: Admitad). By sector, this growth will be posted in the following product categories: fashion and footwear, home appliances, electronics, FMCG, homeware, books, furniture and automotive parts.
E-commerce is the main engine of growth of the Polish warehouse market
The Polish warehouse and logistics market remains strongly driven by the expansion of e-commerce. Its rapid growth has been fuelled in recent years largely by the demand coming from e-retailers. The rise of cross-border retailing is another notable trend in e-commerce. There has been a considerable increase in cross-border deliveries, including orders placed by overseas consumers in Polish online stores and by Polish consumers on overseas websites.
Poland’s strength lies in its central location in Europe, enabling efficient distribution to other countries (Central and Eastern European countries, including the Baltic states, and major Western European markets). Poland also attracts e-retailers to set up central warehouses here with low rental costs – still the lowest in Europe. This has led to a growing demand for logistics space coming from international e-retailers. Leasing activity is particularly strong in western Poland, whose S3 expressway enables seamless shipments to western markets such as Germany and Scandinavia, and - when it is fully built out - to the Czech Republic, Slovakia and Hungary.
2013, when Amazon signed leases for its first projects in Poland, was a turning point for the Polish market. The world’s biggest online shopping platform already operates several large logistics centres in Poland, including facilities in the vicinity of Wrocław, Poznań, Szczecin, Sosnowiec and Bolesławiec. Given its expansion plans for Poland, the company will soon have eight BTS (build-to-suit) schemes with a total area of nearly 1 million sq m of warehouse space.
Another e-commerce giant Zalando already has nearly 400,000 sq m across three logistics centres: in Głuchów near Łódź, Ameryka near Olsztynek, and in Gardno near Szczecin. Other market players include retailers pursuing omnichannel strategies (Smyk, Vistula Retail Group, KRM, LPP, Leroy Merlin, Decathlon and MediaMarkt Saturn), logistics operators with experience in cooperation with e-commerce (Arvato Bertelsmann, Fiege, Rhenus Logistics, DHL Supply Chain and Spedimex), and CEP (courier, express and parcel) companies such as DHL, DPD, InPost, TNT/FedEx, GLS, and UPS. According to Cushman & Wakefield’s latest report “How to get the hang of e-commerce in warehouses”, warehouse stock dedicated to e-commerce in Poland has already reached nearly 4 million sq m, accounting for 24.5% of the nation’s total stock.
Technical requirements for an e-commerce warehouse
E-commerce reports special requirements for warehouse space and infrastructure. A traditional warehouse with pallet racks is unlikely to meet occupier requirements given the need for quick delivery acceptance and making goods available for sale, swift order picking and the inevitability of large fluctuations in line with seasons, holidays and sales periods. To increase efficiency, warehouses increasingly feature mezzanines with multilayer cardboard shelf racks, mezzanine lifts, conveyor belts sending picked goods to packing zones, etc. A mezzanine enables a more efficient adaptation and optimum adjustment of available space to individual needs and warehouse conditions. Its construction requires an adequately reinforced floor, more efficient ventilation systems and appropriate lighting. Space for regular work in packing and return processing zones must be appropriately lit.
According to legislation, appropriate lighting must be ensured in places where a single person spends more than four hours a day. Buildings featuring order picking zones with additional lighting in excess of the minimum standard of 300 lux are being constructed more and more often. Mezzanines also need to meet stricter firefighting requirements and be equipped, for instance, with additional sprinkler systems. Poland has seen BTO (build-to-own) and BTS (build-to-suit) warehouses delivered onto the market in the last few years. They are tailor-made facilities and are frequently higher than standard schemes, providing additional spaces measuring up to 18 metres in height to accommodate multi-level pick-towers for efficient and integrated processing of many orders at the same time.
-E-commerce reports special requirements for warehouse space and infrastructure – there is no doubt about it. A traditional warehouse with pallet racks is unlikely to meet occupier requirements given the need for quick delivery acceptance and making goods available for sale, swift order picking and the inevitability of large fluctuations in line with seasons, holidays and sales periods – says Damian Kołata, Associate, Senior Business Development Manager, Cushman & Wakefield.
There are several types of warehouse facilities serving a variety of functions in e-commerce; these include online order fulfilment centres, courier/parcel sorting hubs, urban logistics facilities, return centres and warehouses of foods sold online. The pressure of quick access to end customers and the challenges of the shortest possible delivery times are driving the growth of urban warehouses measuring between a few hundred and several thousand square metres. Such Small Business Units are being developed in Poland’s largest metropolitan areas such as Warsaw, Łódź, Poznań, Wrocław, Gdańsk, Szczecin and Bydgoszcz. They are also good solutions in such locations as Białystok, Częstochowa, Rzeszów and Toruń.
A Small Business Unit can be an excellent place when it comes to quick order collection or return, and can also feature a showroom or even a centre of value-added services such as express small-scale tailoring services for fashion companies, which perfectly fits in with another market trend: personalised production. A city logistics warehouse can also provide an office and a small space for light manufacturing, if requested by a client. All key business operations can thus be accommodated in a single location.
Source: Cushman & Wakefield
Mira Matusiak, Wojciech Przybylak and Tomasz Bulej have joined the Industrial and Logistics Agency of global real estate services firm Cushman & Wakefield.
Mira Matusiak was appointed as a Negotiator at Cushman & Wakefield with responsibility for warehouse and industrial space leasing, liaising with developers and tenants, client advisory, business development and oversight of projects in Lower Silesia. Mira has worked in real estate for over 10 years and has experience in cooperation with international companies and partners. She began her professional career in residential real estate. Prior to joining Cushman & Wakefield, she worked for SDP Nieruchomości as a Branch Manager. She graduated in Science in Professional Communication from Clark University.
Wojciech Przybylak joined Cushman & Wakefield as a Land Specialist with a focus on land analysis, review and acquisition for warehouse and industrial projects. His responsibilities also include advice on the Special Economic Zone, utility connections and provision of services for clients to roll out production. For the past three years he had worked as a Senior Urban Planner Assistant for SUNBAR, where he was responsible for zoning plans, land use plans, spatial analyses and related graphic designs and financial forecasts for approved zoning plans. Wojciech completed a master’s degree program in Land Management and postgraduate studies in Real Estate Valuation at the Warsaw University of Life Sciences.
As a Junior Negotiator, Tomasz Bulej is responsible for warehouse and industrial space leasing, and liaising with developers and tenants. His other duties include market research into industrial and logistics space listings and client acquisition. He gained professional experience in the pharmaceutical industry with Pfizer and Teva as a Senior Pharmaceutical Sales Representative. Tomasz completed postgraduate studies in Business Psychology for Managers at Koźmiński University. He is also a graduate of the University of Physical Education in Warsaw.
Source: Cushman & Wakefield
The international consulting company Cushman & Wakefield represented FM Logistic in the lease transaction of over 5,000 sq m. warehouse, together with office and social space in Panattoni Park Janki III. \
FM Logistic in Central Europe is a branch of the international organizer of logistics solutions founded in 1967 in France. The company started its foreign operations in the 90s of the last century, opening its platforms in Poland, the Czech Republic and Slovakia, and then in Hungary, which currently form the joint FM Logistic Central Europe region. Currently has 19 logistics platforms, 24 transhipment warehouses and employs over 5,500 thousand employees. It has a total of over 750 thousand sqm. warehouse space and a fleet of approx. 2.5 thousand vehicles. It offers its clients services related to storage, copacking and transport of goods -
The FM Logistic decision was influenced by both the very good location of the new Panattoni investment, located at Warsaw's Southern Bypass, as well as the developer's understanding of the tenant's business needs and the resulting flexibility. The new space will be adapted to the company's requirements and will allow the development of the operator's distribution activity in the Warsaw area - comments Joanna Sinkiewicz, Partner, Director of the Industrial and Logistics Department, Cushman & Wakefield.
Panattoni Park Janki III is one of Panattoni's latest warehouse projects in and around Warsaw. The facility is located 15 km from the center of Warsaw, about 14 km from Chopin Airport and 2 km from the intersection of the S8 express road and national road No. 7. The logistics center will be put into use in the fourth quarter of 2019.
Source Cushman & Wakefield
Portfolio covers 47 logistics properties across Poland, Hungary, Romania, the Czech Republic and Slovakia
Global real estate services firm Cushman & Wakefield has been appointed by Logicor to manage a portfolio totalling more than 1.7 million square metres of logistics real estate across dozens of sites in Central & Eastern Europe (CEE).
Strategically located along busy trade routes in Poland, Hungary, Romania, the Czech Republic and Slovakia, the portfolio – comprising of 47 logistics parks Logicor owns and operates in CEE – will be managed by Cushman & Wakefield’s EMEA Asset Services business.
The portfolio includes 33 logistics parks (1,297,000 sq m) in Poland, located in Warsaw suburbs, Central Poland, Wrocław, Silesia, Kraków, Rzeszów and Poznań. A further eight logistics parks (175,600 sq m) are in Hungary, four properties (159,000 sq m) in Romania, one (64,120 sq m) is in the Czech Republic and one (26,000 sq m) in Slovakia.
The Logicor account will be led by Zuzanna Paciorkiewicz, Cushman & Wakefield’s Head of Operations for Asset Services Poland, who will oversee teams based in Warsaw, Budapest, Prague and Bucharest as well as those on site.
Zuzanna Paciorkiewicz, Account Lead, Head of Asset Services Poland, Cushman & Wakefield, said: “Logicor has one of the largest directly-owned networks of logistics real estate in Europe and we are proud to be entrusted with managing a significant proportion of it in the CEE region. The portfolio also takes the total amount of property that we manage in Poland to 3.2 million square metres, making us the number one property management services provider in the country by space managed.”
The portfolio adds to the approximately 30 million square metres (323 million square feet) of commercial real estate in 14 countries managed by Cushman & Wakefield’s EMEA Asset Services business which provides property management services on behalf of corporate, institutional and private clients across the region.
Tina Reuter, Co-Head of EMEA Asset Services, Cushman & Wakefield, said: “Our value-adding Asset Services platform is focused on driving operational excellence, innovation and exceptional outcomes for our investor clients. We look forward to working with Logicor to deliver active and sophisticated management on this significant cross-border logistics portfolio.”
Source: Cushman & Wakefield
Global real estate services firm Cushman & Wakefield has advised on the acquisition of a 17-hectare plus land in Biskupice Podgórne near Wrocław. The new owner of the land is SEGRO, a developer and owner of warehouse parks in nine countries across Europe.
The property, located near Wrocław and by the Pietrzykowice interchange of the A4 motorway, close to Nicolaus Copernicus Airport, was acquired to build a new industrial and warehouse park SEGRO Logistics Park Wrocław.
“We advised on the acquisition of a plot on which SEGRO will be able to break ground on a new industrial and warehouse project. Key drivers behind the developer’s decision included the land’s prime location, good accessibility and a favourable business environment,” said Michał Sikora, Land, Technical and Special Economic Zone Consultant, Industrial and Logistics Agency, Cushman & Wakefield.
SEGRO is a leading owner, manager and developer of modern warehouses, with operations in Central Europe since late 2005. Its key markets include the United Kingdom, Germany, France and Poland. SEGRO currently owns two warehouse parks in the vicinity of Wrocław: SEGRO Industrial Park Wrocław and SEGRO Logistics Park Wrocław. Its other properties are located in Poznań, Warsaw and Gliwice.
Source: Cushman & Wakefield
Global real estate services firm Cushman & Wakefield presents commercial real estate investment volumes. Approximately EUR 754m was invested in Polish commercial property in the first quarter of 2019.
The office sector turned over EUR 536m, accounting for more than 70% of the transaction volume;
Demand for retail assets slowed down in Q1 2019;
2019’s investment volume is expected to be on par with that recorded in 2018.
“The investment volume hit approximately EUR 754m in the first three months of 2019, of which over 70%, or EUR 536m, was invested in office assets. Although the first quarter’s result accounts for just a little more than one third of that recorded in the same period last year, the Polish market is likely to see an equally strong performance this year as in 2018 given pending transactions, the level of investment activity and asset availability,” says Marcin Kocerba, Associate, Capital Markets, Cushman & Wakefield.
According to global real estate services firm Cushman & Wakefield, office and hospitality assets attracted the strongest investor interest. Hospitality investment volume hit more than EUR 143m, which represented more than a threefold increase on the same period last year (approximately EUR 43m). The office sector saw an almost fourfold increase with nearly EUR 536m traded in Q1 2019 compared to approximately EUR 142m in Q1 2018. Retail attracted only EUR 36m in Q1 2019. The investment activity in the industrial sector reached EUR 39m in the first three months of 2019, down from approximately EUR 135.2m recorded in Q1 2018.
“Last year’s trends gained momentum in the first quarter of 2019 with high levels of investment activity on the office and industrial markets, and an increased interest in alternative assets such as hotels, PBSA and PRS. Investors are far more cautious about the retail sector with demand being highly selective,” says Marcin Kocerba.
Source: Cushman & Wakefield
Global real estate services firm Cushman & Wakefield has carried out a survey into warehouse needs of e-commerce tenants, the first such project in Poland.
We use cookies to optimise site functionality and give you the best possible experience.
This site uses cookies to store information on your computer.
Some of these cookies are essential, while others help us to improve your experience by providing insights into how the site is being used.
Accept Recommended Settings
Necessary Cookies
Necessary cookies enable core functionality such as page navigation and access to secure areas. The website cannot function properly without these cookies, and can only be disabled by changing your browser preferences.
Analytics
Analytical cookies help us to improve our website by collecting and reporting information on its usage.
Marketing
We use marketing cookies to help us improve the relevancy of advertising campaigns you receive.
Social Sharing Cookies
We use some social sharing plugins, to allow you to share certain pages of our website on social media.
