The industrial market in Poland feels well
The industrial sector in Poland demonstrates good results. From January to September 2018, around 2.8 million sqm were leased and 1.3 million sqm appeared on the market. More than 2 million sqm are being built.
A representative of the company noted that Q1 of 2018 demonstrated better results than during the same period a year before. But the demand is somewhat lower – less than 2.15 million sqm. Logistics operators are the ones who drive the industrial sector in the country. Currently, this sector has a 41 percent share of net demand while retailers have 33 percent.
Central Poland saw the biggest growth this year. Plenty of space in Q1 through Q3 was in demand in the five major industrial market regions. Other markets saw a high level of activity from tenants.
So far, projects which were completed included parks (about 1.3 million sqm), with 675,000+ sqm being finished in Q3. To deliver better results than in 2017, about 950,000 sqm should be delivered in Q4. And this is real since there is enough space under development. But the construction process became somewhat slower and it is hardly possible that this amount will be presented this year.
According to of the company representative, more than 2 million sqm of industrial premises are being developed across the country. Central Poland is the most popular destination. There is more than 525,000 sqm of new completions and this is 40 percent of the general space available throughout the country. Plus, there is almost half million sqm of space being developed in Central Poland.
Other regions saw a high level of construction activity as well.
The Polish industrial market is popular since tenants want to be closer to their clients and also get used to the shorter delivery times. To be in trend, new platforms designed for urban logistics appeared.
Vacancy rate and rents
The high levels of construction activity in the third quarter of 2018 led to increases in vacancy rates across the countries.
Rents throughout Poland almost do not change. Central Poland has the most attractive rents.
However, some prime places and the most up-to-date spaces have seen slight increases. Developers do not want to negotiate lease terms because the land prices and construction costs became higher.