Warehouse market matures for speculative projects

The supply of space on the warehouse market now amounts to almost 8 mln sqm, with around 600,000 sqm under construction. We expect a few more projects to be launched soon, some of which are to be completed this year. CBRE expects that the supply at the end of this year will reach 8.6 mln – and will increase over the next few years to exceed 10 mln sqm by the end of 2017. Poland has the best position in the region at this moment as far as investor interest is concerned. We expect to maintain this position in the near future. In Central and Eastern Europe, Romania is very often in competition against Poland, which is, however, a much bigger and certainly a more stable market. For many investors the security and lower risk are often more important than lower operating costs. The favourable economic conditions and the higher supply are now encouraging warehouse developers to return to speculative projects. These include Prologis’ projects in Wrocław and the Ideal Idea facilit