A year in warehousing

The majority of these deals were for space in Upper Silesia as well as for space in and around Warsaw. Additionally, a total of 380,000 sqm was delivered to the market representing an increase of 40 pct on the previous year. Vacancy rates fell steadily in the first three quarters but rose slightly in the final quarter. At the end of 2010 they stood at 13.8 pct, whereas at the end of 2011, the figure had fallen to 11.4 pct. However, other markets in the CEE region were not so buoyant. In the Czech Republic total gross take up came to around 800,000 sqm, 20 pct down on the previous year; while according to Jones Lang LaSalle, only 486,200 sqm of warehouse space was completed in the Moscow region, the lowest level since 2005.

Developers reveal all
All the major developers have now published their figures for the previous year. To start with, Panattoni has proudly announced that it completed 164,000 sqm of space in Poland and leased 350,000 sqm throughout 2011, of which 254,000 sqm was leased to new clients. By the end of the year, a further 100,000 sqm was under development. The company leased BTS facilities to Zelmer, Danone, Tech Data and Nagel Polska while it expanded its parks in Poznań, Mysłowice, Gliwice, Gdańsk, Łódź and Wrocław. Panattoni's vacancy rate within its European portfolio is now only 1 pct. In the coming year the group states that it intends to continue developing BTS projects and also to further develop its sites in Wrocław, Warsaw, Poznań and Bydgoszcz.
PointPark Properties (P3) is also claiming a successful year with over 472,000 sqm leased across 10 countries in Europe (an increase of 104 pct) including over 75,000 sqm leased in Poland. Among the deals it concluded in the CEE region are a 26,200 sqm BTS facility for Schnellecke Slovakia in PointPark Bratislava, a 23,000 sqm BTS facility in PointPark Poznań in Poland for PF Concept, the lease of 20,578 sqm to JMD in PointPark Mszczonów in Poland, the development of 15,000 sqm for Audia Plastics in Trnava in Slovakia, and the lease of 13,326 sqm by PST in PointPark Prague D1 in the Czech Republic.
Segro too feels proud of its achievements in 2011. Over the year it leased 270,000 sqm in Central Europe. The company, which is relatively new in the region having begun operations at the beginning of 2006 (at present it operates only in the Czech Republic and Poland), leased over 140,000 sqm to new clients, including to General Motors, Action, PepsiCo and Adler. A further 130,000 sqm was re-leased over the year, including to Červa Export Import, which not only prolonged its lease agreement in Segro Logistics Park Prague, but also leased 1,850 sqm in Tulipan Park Ostrava, bringing the occupancy of the facility up to 100 pct. As for the future, Segro says only that it is to continue with its current strategy.
Prologis is equally pleased with last year's results having leased over 1.7 mln sqm across the CEE region (Poland, Czech Republic, Slovakia, Hungary and Romania), more than 400,000 sqm more than in 2010. Most of this space (58 pct) was leased in Poland. The group signed leases for 385,000 sqm with new tenants as well as lease extensions totalling 872,000 sqm. Short-term leases (i.e. for less than 12 months) were signed for 454,000 sqm. The vacancy rate across the Prologis CEE portfolio was at 11 pct at the end of 2011. In Poland, Prologis leased out a total of 992,000 sqm, an increase of 13 pct on the previous year, while the vacancy rate for the Polish portfolio fell from 19 pct to 13 pct. Notable new lease agreements in Poland included: 35,500 sqm leased by Solid Logistics in Prologis Park Teresin, 20,300 sqm leased by ID Logistics in Prologis Park Chorzów, 17,220 sqm leased by Rhenus Contact Logistics in Prologis Park Błonie, 13,300 sqm leased by Deichmann Logistik in Prologis Park Wrocław III, and 12,740 sqm leased by Raben in Prologis Park Chorzów. Prologis was also responsible for the largest Polish deal of the year, a lease renewal with Unilever for 50,300 sqm in Prologis Park Piotrków I. Last year was also significant for the company, because it merged with AMB Property Corporation in June. This has resulted in Prologis undergoing a process of rationalisation, involving selling off land and property outside its core markets to reinvest in global and regional markets.

Colliers reads the tea leaves
In its predictions for the CEE region in 2012, Colliers International foresees little change on the Polish market this year. The supply of new space should remain similar to that seen in 2011, although falling vacancy rates may lead to increased rents. However, in the Czech Republic gross take-up in 2012 is expected to fall by 12.5 pct and vacancy rates should fall from the current 7-8 pct. Slovakia should be characterised by an increase in supply with a fall in take-up. Around Moscow, app 500,000 sqm of space should be completed, while take-up is to remain flat and vacancy rates should fall to around 1 pct. In the St Petersburg area, the low vacancy rates should prompt many new developments to come onto the market. Take-up in Hungary should remain flat with little new development and high vacancy rates.