The Polish industrial market is growing at a fast pace. The volume of newly delivered space in H1 2014 exceeded that recorded in the corresponding period of 2013. Between January and June 2014, as much as 326,000 sq m was delivered to the market, compared with 198,000 sq m delivered in H1 2013. As a result of such an increase in stock, total supply surpassed 8 million sqm in 2014. At the end of June 2014, the total supply of modern industrial space in the Polish market reached 8.09 million sq m.
Tenants’ activity in H1 2014 was higher than in the first six months of 2013 as well. Over 1 million sq m of industrial space was leased in the analysed period, while demand in H1 2013 slightly exceeded 870,000 sq m.
At the same time, we have observed a growing volume of short term agreements, which are not included in regular demand statistics. As much as 45,000 sq m was leased for a short period in Q1 2014, while in Q2 2014 the volume was 72,000 sq m.
The vacancy rate for the Polish market has declined by 2 percentage points since the beginning of January 2014. At the end of June 2014, 8.8% of the existing stock remained vacant.
– The first post-crisis speculative investments were launched this year. Developers will carefully observe the market but we do not expect large numbers of speculative projects in the upcoming months. We have recorded the growing activity of the tenants from the e-commerce sector and we expect this trend to continue in the long term. In the upcoming months, rents will remain stable in the majority of markets. In the long–term, we expect a slight upward trend in locations characterised by decreasing vacancy rates. – comments Tomasz Kasperowicz, Partner at Colliers International.