Boom boom boom...

Never has the warehouse and logistics industry grown at such a rate in Poland as in the first six months of 2006 – such is the unanimous opinion of the analysts.

Tomasz Olszewski, head of Cushman &Wakefield’s department of industrial space, expresses a similar view: – The warehouse boom is a consequence of the country’s general economic situation. Shops are selling lots of goods and warehouses must keep pace with the demand.

Warehouses serving shopping chains as well as the industrial sector are doing equally well, although a sort of specialization can be observed regionally in both logistics fields. As was expected, the Warsaw region lost its leading position in terms of the rate of growth.

Łódź retains its honourable position as vice-leader, though it seems to have become saturated with logistic parks. Renata Osiecka reveals that: – The data we have shows that the supply of space to this market is around 1.3 mln sqm, while pre-let space amounts to around a mere 80,000 sqm.

excellent

a hungry eye on the regional planning development of European distribution centers to serve several countries. The districts around Wrocław and Poznań, where many new production plants are being built, is a promising market for industrial logistics, since they have to ensure supplies of materials to production lines on the “just-in-time” principle.

New regions which have been noticeably absent on the warehouse market are now entering the group of rapidly growing areas, although perhaps still rather timidly. The first steps are being taken by the coastal Tricity region in which up to now no modern logistics parks have existed. BIK is among those developing an 11,000 sqm warehouse in Pruszcz Gdański to be opened this autumn.

Panattoni Poland, ProLogis and Slough Estates were the most active companies in the industry in the last half year. The latter was the architect of the most spectacular transaction concluded in that period – the acquisition of Dutch developer Grontmij RE, together with two warehouse projects currently under development (Tulipan Park Stryków and Tulipan Park Poznań) and also one office project (Tulipan House in Warsaw).

The third of these, Panattoni, apart from its lucrative earlier mentioned contract with H&M, has also signed a tenancy contract with Coty Polska for more that 12,000 sqm, or 72 percent of the constructed centre in Bielsko-Biała.

Now what?

Huge numbers of lorry drivers are finding work abroad, and complaints about the deplorable state of Polish highways are often being expressed, without any prospect of rapid improvement. Even so, market analysts seem upbeat.

Renata Osiecka of Colliers International lends support to this opinion: – The boom will definitely last at least until next year. The performance of the industrial in recent months constitutes encouragement for potential investors. To them Poland is still the least expensive and most profitable market in the whole region.