The key findings of the report are:

 Activity remains concentrated around the larger centres of population and economic strength, with markets such as Moscow, Warsaw, Prague and Budapest providing the largest volumes of modern stock.

 There is a clear clustering of activity around the industrial regions of Poland, the Czech Republic and Slovakia. These locations benefit from proximity to their feeder markets in Germany and Austria in particular, helping drive demand for space from regional distributors, manufacturers and retailers.
 Athens, St Petersburg and Gdansk (Tricity) have a wider distribution role to play as major European trading ports, which escalates the volume of activity in these specific markets.
 Elsewhere, demand for space is driven primarily by occupiers with local and national distribution needs to satisfy the domestic economy.
 Large Russian cities with a population of over 1 million will have an increasingly important role to play, as improving external trade linkages open up the European continent to the east.

Recent market activity
Moscow and Warsaw dominate the region as the busiest locations.
Kiev, Budapest and Bucharest feature in the top half of the table - cities with much larger populations than the likes of Bratislava or Pilsen. This highlights the extent to which locations in Poland, the Czech Republic and Slovakia continue to be driven by demand for space from regional distributors, manufacturers and retailers with proximity to Germany and Austria.
An analysis of take-up as a proportion of existing stock, exemplifies this trend. Whilst a take-up rate of 10% would denote a healthy market -putting most locations into positive trading territory - the top most active locations in relation to size are all in Poland, the Czech Republic and Slovakia. The only exception is Nizhny Novogrod in Russia, some 350km to the east of Moscow.

New market developments
In our report of 2010, we forecast Slovakia would see a marginal increase in demand outside of Bratislava by 2013. This has been realised with new leasing and development activity in Kosice, Presov and Zilina, although these markets remain small-scale in the grand scheme of things.
We also suggested Northern Hungary will start to see the benefit of new infrastructure improving proximity to Austria and Germany, helping to drag demand south. Whilst this has yet to translate into a flux of activity for modern space in these areas there are signs that the area is seeing growth in enquiries, leading to increasing levels of activity.
Hewlett Packard, for instance, announced in October 2012 that it will create a new distribution route sending goods to Europe via the port of Piraeus in Athens, which will then dispatch over 20,000 containers to their regional distribution centre in Sopron, northern Hungary, via rail. Goods will then be transported on to the markets of central and eastern Europe, saving total travel time of 5-7 days and thus operating costs.
This incorporates one of our other longer-term predictions, that rail freight would feature more in the logistics supply chain, providing particular benefits to locations in Eastern Europe.

Future Trends
There are three main trends which will impact demand for, and supply of, modern logistics space over the short, medium and long term:

1. Growth in rail freight distribution.
2. Demand growth driven by retail sales and manufacturing/distribution.
3. E-tailing and design implications.