Polish warehousing hit by the slump

Take-up was substantially lower than in 2011, with a gross total of 1.35 mln sqm of space leased and 755,000 sqm minus renewals. The 599,000 sqm of renewals meant that such leases grew from 40 pct in 2011 to 44 pct. Gross demand was 305,000 sqm lower than in 2011. The highest demand was in the Warsaw suburbs (395,000 sqm of leased space), central Poland (270,000 sqm), Wrocław (211,000 sqm) and Upper Silesia (200,000 sqm). The biggest deals were signed by Leroy Merlin Polska and Panattoni (56,000 sqm at Panattoni Park Stryków, a renewal), DHL and Prologis (33,800 sqm at Prologis Park Dąbrowa, a new deal), and Lear and Panattoni (a build-to-suit facility in Legnica with 32,000 sqm). The share of the deals accounted for by logistics firms traditionally increases during downturns, according to JLL, and last year took up 653,000 sqm of the space leased, followed by companies from the automotive sector (129,000 sqm) and the food sector (120,000 sqm). Vacancy rates remained relatively stable – there was 713,000 sqm of vacant distribution space at the end of December or 10.1 pct of the total available. In comparison, at the end of 2011 the figure was 11.2 pct. Space under construction at the end of the year totalled 222,000 sqm, with the largest new supply being developed in Wrocław (91,000 sqm), the Warsaw suburbs (43,000 sqm) and Upper Silesia (36,000 sqm). Speculative projects accounted for merely 11 pct of the total, down from 18 pct at the end of the previous year. Warehouse space in Warsaw inner city was offered at EUR 3.60 to EUR 5.30 per sqm per month, while in Kraków they ranged between EUR 3.30 and EUR 4.00 and in Łódź from EUR 2.80 to EUR 3.85. Lower rents could be found in warehouse parks in the suburbs, such as between EUR 2.20 and EUR 2.80 in the Warsaw area, EUR 2.10 to EUR 2.60 in central Poland, and EUR 2.30 and EUR 3.40 elsewhere.