CBRE: Demand for industrial space in Poland remains high (PL)
Wednesday 11 February 2009
CB Richard Ellis issued its quarterly Big Box Poland 4Q-2008 report, covering all aspects of industrial market in Poland, including demand, supply, rents, yields and trends. Despite an expected economic slowdown, the demand for industrial space in Poland remained strong. In 2008 take-up reached a record level of 1.4 million m² leased by tenants in the whole country.
Total modern stock, as of the end of 2008, amounted to over 4.8 million m² with 10% vacancy rate. The number of new projects handed over still remains very high, however the amount of space under construction has decreased. Developers, expecting lower demand in the next few years, have limited the number of buildings planned speculatively. The majority of new warehouse space has been pre-let during construction.
‘Rents are without doubt on the rise, particularly in the larger cities. The current financial crisis has impacted plans of developers. New construction is launched only as build-to-suit investments. We also expect that in 2009 the demand for warehouse space may drop and the market might experience a kind of stagnation.’ – said Joanna Mroczek, Director of Research and Consultancy department at CB Richard Ellis.
The highest rents were recorded in Warsaw submarket and have reached €6.00 - 6.40 /m²/month. In remaining submarkets rental levels currently oscillate at €3 – 4.20 /m²/month.
The investment market is still restrained by the global financial crisis. Logistic yields have decompressed in the last year to around 7.5% - 7.75% at the moment for prime products.