Boom on the Polish warehouse market

At the moment, modern warehouse stock in Poland is at the level of 3 mln sq m (33% growth y-o-y) and another 860,000 sq m is under construction. In the first quarter of 2007, there were 270,000 sq m of warehouse space delivered to the market (comparing to 2006 when the annual supply totalled 500,000 sq m). The biggest rise in supply was in the regions of Wrocław (56,000 sq m), Upper Silesia (above 50,000 sq m) and in Gdańsk and Poznań (45,000 sq m in each city). Despite the dynamic development of those regions, Warsaw still remains the dominating market with the stock at 1.6 mln sq m (55% of Poland’s stock).

At the moment, modern warehouse stock in Poland is at the level of 3 mln sq m (33% growth y-o-y) and another 860,000 sq m is under construction. In the first quarter of 2007, there were 270,000 sq m of warehouse space delivered to the market (comparing to 2006 when the annual supply totalled 500,000 sq m). The biggest rise in supply was in the regions of Wrocław (56,000 sq m), Upper Silesia (above 50,000 sq m) and in Gdańsk and Poznań (45,000 sq m in each city). Despite the dynamic development of those regions, Warsaw still remains the dominating market with the stock at 1.6 mln sq m (55% of Poland’s stock).

During the 1st quarter of 2007, the lease transactions amounted to 290,000 sq m. Demand was generated mainly by logistics operators and retailers. The biggest volume of warehouse space was leased in Warsaw (93,000 sq m), Poznań (72,000 sq m) and Upper Silesia (60,000 sq m). ProLogis, a developer that acquired Parkridge CE Developments, has strengthened its leading market position with a 37% share in the existing stock. After the analysis of lease transactions, the main players on the market are: Panattoni (20% of total demand), ProLogis (17%) and SEGRO (14%). Cushman & Wakefield was involved in the lease transactions of almost 60,000 sq m of warehouse space.