PL

CEE Similar trends across Europe

Warehouse & industrial
According to Cushman & Wakefield latest findings, the total size of the modern industrial and warehouse space in CEE exceeded 59 mln sqm in H1 2023. With a 52 pct share of the total size, Poland is the largest market in the region, the second being the Czech Republic with 19 pct.

In twelve months, over 7,6 mln sqm was completed, expanding the market by 16 pct, and currently, additional 5 mln sqm is under construction. The demand is decreasing, but the nearshoring trend presents new opportunities.

The fundamentals of the CEE industrial real estate market remain strong. Nearshoring offers further opportunities for the region, particularly in the automotive, engineering, apparel, and consumer goods sectors.
Jiří Kristek, head of the Industrial and Retail Warehousing Team, Cushman & Wakefield

As of June 2023, the total market size for modern industrial and warehouse space in CEE-6 exceeded 59 mln sqm, with new supply in H1 being app. 3.8 mln sqm. The Czech Republic’s share is circa one fifth (19 pct) of the region’s total capacity and more than a quarter (27 pct) of the new supply. Poland is the largest market, accounting for 52 pct of the market size and 42 pct of the new supply.

Vacancy still low, rents keep growing

On an aggregate level, the share of pre-let space under construction is gradually declining: while at the end of H1 2021 the share of pre-let space in the Central European region was 61 pct of total space under construction, this year it was only 44 pct. In the Czech Republic and Romania it was even lower, around 39 pct.

Tenant demand in CEE continued to decline in H1 2023: the total volume of let space in the region fell by 29 pct year-on-year, mainly due to large declines in Poland (-39 pct), the Czech Republic (-32 pct) and Slovakia (-23 pct). In contrast, demand increased in the other countries of the region, by as much as 136 pct in Bulgaria. Despite slight upward corrections in Hungary, Poland and the Czech Republic, vacancy rates remained in single digits in all markets, especially in the Czech Republic and Bulgaria, even below 2 pct.

At the end of H1, prime rents increased compared to last year in all CEE markets except Romania. The strongest growth has been in Poland, where prime rents stand at EUR 6.50/sqm/month, up 35 pct year-on-year. In the Czech Republic, rents remain at EUR 7.75/sqm/month, still the highest level in the region.

Low investment activity, construction driven by two developers

The investment activity remains low in the logistics and industrial property sector. Total investment in industrial property in CEE fell by 45 pct year-on-year in H1 2023. It reached app. EUR 630 mln, representing nearly one third (29 pct) of total investment in the region's traditional commercial real estate sectors.

With the exception of Bulgaria, the region has seen an increase in returns from the premium industrial property sector, ranging from a 25 pp increase in Romania to a significant 150 pp increase in the Czech Republic.

Nevertheless, healthy vacancy rates in this sector, strong demand driven by nearshoring trends and a slowdown in development activity should attract investors to the region's industrial and logistics sector in the upcoming period.
Jiří Kristek

The logistics and industrial real estate market in the CEE region is still very consolidated: two international companies in particular, Panattoni and CTP, have a large share of the current construction (over 55 pct in H1) and are active in almost all countries in terms of leasing. Prologis should be also mentioned, whose parks accounted for 18 pct of total gross take-up in the region in H1 2023.

CEE trends mirror European developments

As a result of high economic uncertainty and lower business and consumer confidence, markets are returning to pre-pandemic coronavirus activity levels, although in a number of particularly smaller markets (including many in the Central European region), take-up volumes are still much higher than pre-pandemic levels. Across Europe, there is still a limited supply of vacant space, which is driving up rents. While no longer growing at the record pace of recent years, the trend is still positive. Investment volumes also continue to fall across Europe as investors wait for new price levels to stabilise. However, yield decompression is beginning to slow, and activity is slowly returning thanks to investor confidence in the strength of this market.

As economic uncertainty continues to impact business and consumer confidence, we expect occupier activity to remain subdued for the rest of 2023 and into early 2024 before picking up as businesses experience greater optimism. The availability of vacant space will remain limited as developers slow their speculative construction, which is already evident in Central Europe. Rental growth is expected to slow in 2024 and beyond, although it will remain in positive numbers across European markets.
Jiří Kristek

Latest news

Warehouse & industrial

Poland The warehouse giant in Targówek has woken up

schedule 17 April 2024
Eurobuild CEE

The JV of Partners Group and Peakside Capital Advisors has completed the construction of the first warehouse facility in City Point Targówek. The 7,000 sqm building fully leased to DPD Polska is the part of a complex which will provide nearly 100,000 sqm space in the biggest park of last-mile logistics in the Warsaw boundaries.

Material partner

Poland Excellent Fern at Off Piotrkowska

schedule 04 April 2024
Eurobuild CEE

Intensive commercialization of the multifunctional Fern building under construction at Off Piotrkowska Center has begun. A modern building, the construction of which will start at the turn of 2024/2025, offers 4,700 sqm of service space and 2,700 sqm of office space.

Retail & leisure

Poland Good start for Polish retail

schedule 17 April 2024
Opr./edited by JC

Cushman & Wakefield has summarised the situation on the Polish retail market. The opening of 2024 is encouraging and new retail space supply in the coming months is likely to match or even surpass last year’s total.

Residential

Germany Berlin residential market report 2024

schedule 17 April 2024
Opr./edited by ANZ

According to the Berlin 2024 Residential Market Report by real estate financier Berlin Hyp and real estate service provider CBRE, purchase prices have fallen, while pressure on the rental housing market continues to increase. As a result, rental prices are continuing to rise sharply.

Hotels

Germany IHG doubles in Germany

schedule 17 April 2024
Opr./edited by JC

IHG Hotels & Resorts and Novum Hospitality announced a long-term agreement that will double IHG’s presence in Germany to more than 200 hotels in almost 100 cities through Holiday Inn – the niu brand collaboration and European debuts for IHG’s Garner and Candlewood Suites.

Warehouse & industrial

Poland Hillwood makes its debut near Poznań

schedule 17 April 2024
Opr./edited by ANZ

Hillwood Polska has started its first investment in the Poznań market. As part of the Hillwood Poznań - Czempiń project, the company is building a warehouse complex of nearly 130,000 sqm.

Retail & leisure

Czech Republic Prague’s Černý Most shopping mall will grow

schedule 16 April 2024
Opr./edited by ANZ

Centrum Černý Most, a shopping centre in the Prague region, is set to undergo a significant expansion of 9,100 sqm that will add over 30 new shops and restaurants, as well as additional screens to the centre’s multiplex cinema.

Office & mixed-use development

Poland The Bridge has gained its height

schedule 16 April 2024
Opr./edited by ANZ

The structure of The Bridge skyscraper in Warsaw's Wola district has reached its final height, i.e. 174 m. The builders have just completed the last technical floor. Installation and finishing works inside the facility and the assembly of the facade are in progress.

Retail & leisure

Poland Glinianka changes hands

schedule 16 April 2024
Opr./edited by JC

Redkom Development sold 100 pct of shares in the company holding the Glinianka complex. The retail park, located near Warsaw, has been bought by CEE-Big Europe.

Warehouse & industrial

Poland The logistics park in Sulechów is ready

schedule 16 April 2024
Opr./edited by ANZ

Panattoni has finished the last stage of Panattoni Park Sulechów III. The centre has been developed for BestSecret, a European members-only online destination for premium and luxury off-price fashion. The building has a total area of 136,000 sqm, which makes it one of the largest logistics centres in the region.

Warehouse & industrial

Germany CTP builds for Quanta

schedule 16 April 2024
Opr./edited by JC

CTP has signed a deal with Quanta Computer, a Taiwanese company that manufactures computers and electronic hardware, for a 22,500 sqm production facility at CTPark Jülich in northwest Germany.

Warehouse & industrial

Poland Fresenius stays with Prologis

schedule 16 April 2024
Opr./edited by JC

Medical company Fresenius Medical Care has renegotiated its lease of 3,900 sqm of warehouse space and 120 sqm of office space in Prologis Park Poznań.

Events

Poland Piotr Kroenke (1950-2024)

schedule 15 April 2024
Eurobuild CEE

We regret to inform you that Piotr Kroenke, long-time general director of GTC and co-creator of many of the company's successes, has passed away.

ESG

Poland BIK Park Sosnowiec II is now BREEAM certified

schedule 15 April 2024
Opr./edited by ANZ

BIK Park Sosnowiec II has successfully passed the BREEAM certification at the Very Good level. Last year, BIK Park Wrocław I and II - two other properties from the portfolio of Biuro Inwestycji Kapitałowych - went through the same assessment process.

Investment & finance

Romania Retail is strong in Romania

schedule 15 April 2024
Opr./edited by JC

According to the special research report Romania Retail Destinations 2024, released by CBRE Romania, by the end of 2024 the stock of modern retail spaces in the country will overpass 4.5 mln sqm. It will set a new record for Romania.

Warehouse & industrial

Poland Panattoni delivers in Krakow

schedule 12 April 2024
Opr./edited by JC

Panattoni has built another facility in Lesser Poland, City Logistics Krakow Airport II. The investment was made on a speculative basis and already has its first tenant – Allegro.

Warehouse & industrial

Romania Marelvi is set to stay at MLP Bucharest West

schedule 12 April 2024
Opr./edited by ANZ

Marelvi, a distributor of electronics and home appliances in Romania, has extended its lease agreement for more than 8,100 sqm of space at the MLP Bucharest West logistics park. 

Eurobuild CEE

Poland The April edition of "Eurobuild" is now ready to read!

schedule 11 April 2024
Eurobuild CEE

The next edition of our monthly magazine is now available both in paper and digital versions! Traditionally, the new issue was first sent to our conference guests, and then to all readers!

Warehouse & industrial

Poland Midocean takes more and more

schedule 10 April 2024
Opr./edited by JC

Panattoni has launched the construction of Panattoni Park Ruda Śląska IV. A major tenant has already been found with Midocean to lease 20,000 sqm of storage space, including an extension option for a further 10,000 sqm.

Investment & finance

Poland Big splash in Silesia

schedule 10 April 2024
Opr./edited by JC

Mitiska REIM has sold a 6.7ha land plot to Momentum Leisure to develop a theme and water park which will further reinforce the offering of the Europa Centralna retail center, located in Gliwice.

Latest in Warehouse & industrial

schedule 17 April 2024

The warehouse giant in Targówek has woken up

The JV of Partners Group and Peakside Capital Advisors has completed the construction of the first warehouse facility in City Point Targówek. The 7,000 sqm building fully leased to DPD Polska is the part of a complex which will provide nearly 100,000 sqm space in the biggest park of last-mile logistics in the Warsaw boundaries.

schedule 17 April 2024

Hillwood makes its debut near Poznań

Hillwood Polska has started its first investment in the Poznań market. As part of the Hillwood Poznań - Czempiń project, the company is building a warehouse complex of nearly 130,000 sqm.

schedule 16 April 2024

The logistics park in Sulechów is ready

Panattoni has finished the last stage of Panattoni Park Sulechów III. The centre has been developed for BestSecret, a European members-only online destination for premium and luxury off-price fashion. The building has a total area of 136,000 sqm, which makes it one of the largest logistics centres in the region.

schedule 16 April 2024

CTP builds for Quanta

CTP has signed a deal with Quanta Computer, a Taiwanese company that manufactures computers and electronic hardware, for a 22,500 sqm production facility at CTPark Jülich in northwest Germany.

schedule 16 April 2024

Fresenius stays with Prologis

Medical company Fresenius Medical Care has renegotiated its lease of 3,900 sqm of warehouse space and 120 sqm of office space in Prologis Park Poznań.

schedule 12 April 2024

Panattoni delivers in Krakow

Panattoni has built another facility in Lesser Poland, City Logistics Krakow Airport II. The investment was made on a speculative basis and already has its first tenant – Allegro.

schedule 12 April 2024

Marelvi is set to stay at MLP Bucharest West

Marelvi, a distributor of electronics and home appliances in Romania, has extended its lease agreement for more than 8,100 sqm of space at the MLP Bucharest West logistics park. 

schedule 10 April 2024

Midocean takes more and more

Panattoni has launched the construction of Panattoni Park Ruda Śląska IV. A major tenant has already been found with Midocean to lease 20,000 sqm of storage space, including an extension option for a further 10,000 sqm.

schedule 08 April 2024

Hermes by the German border

Panattoni has finished the construction of a logistics centre for Hermes Fulfilment. This is the first project that has been built for the company in Poland.

schedule 04 April 2024

For the seventh time for K-Flex

Panattoni is developing another BTS project for K-Flex – an international manufacturer of elastomeric thermal and acoustic insulation materials. A seventh building of 20,000 sqm in the warehousing and manufacturing complex in Uniejów will be completed in June this year.

schedule 04 April 2024

Maracana won't move out

Maracana, a company specialising in transport, warehousing, logistics and distribution services, has renewed its lease contract for 5,000 sqm at the MLP Bucharest West logistics park.

schedule 03 April 2024

Etron has chosen CTP

CTP has leased 3,600 sqm of production space at CTPark Oradea Cargo Terminal to Etron Technology. The Asian EMS company is a supplier for PCBA, with customers focused mainly on fields like industrial control, medical, automotive, communications, new energy, and high-end consumer products.

schedule 03 April 2024

Accolade picks up Chomutov plot

Czech warehousing investor Accolade has acquired for an undisclosed sum a 20 ha plot from two international owners in Chomutov in the Ústí nad Labem region for an industrial-logistics development.

schedule 28 March 2024

Panattoni has secured millions

Panattoni has won financing for the development of its latest development in Western Pomerania. The EUR 20 mln loan was granted by mBank.

schedule 27 March 2024

Malaysian debut in Poland

Malaysian retail chain, MR D.I.Y., begins operations in Polish market at Hillwood Zgierz I. The company has leased nearly 5,000 sqm at the park to set up its first logistics center in Central Europe.

schedule 27 March 2024

7R enters Czech market

The 7R Group has been granted permission to build a warehouse in the Czech Republic. This is the first foreign project for the company, which has experienced dynamic growth in Poland for 15 years. The value of the investment comes to more than EUR 30 mln.

schedule 26 March 2024

Outsourcing for e-commerce in Syców

Logistics operator 3LP, specialising in automated outsourcing of logistics services for e-commerce sector, is opening its next location. The company has leased 17,000 sqm in the Hillwood Syców logistics park.

schedule 25 March 2024

Yusen Logistics chooses CTPark Bucharest

CTP has agreed a five-year lease for 19,000 sqm of warehouse space at CTPark Bucharest in Romania to Yusen Logistics, a global logistics provider.

schedule 25 March 2024

Panattoni sells in Wrocław

Panattoni has finalised the sale of a centre in Lower Silesia. An international real estate company has purchased Panattoni Park Wrocław West Gate with a total area of 46,900 sqm.

schedule 21 March 2024

Hillwood's first tenant in Łazy

Entalpia Europe has become the first tenant of the Hillwood Łazy logistics centre. The company, which specialises in solutions for the HVAC-R industry, has leased 14,000 sqm of warehouse space and 1,200 sqm, of office space.

Edition 4 (287) April 2024

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