New deals constituted 69% of demand, while renegotiations: 31%
Warsaw, 28 April 2014 – The beginning of 2014 was characterized by a high level of supply. In the period from January to March, 270,000 m2 were delivered to the market, which was five times the new supply noted in Q4 2013 (55,000 m2). The biggest increase in supply of space was observed in the Poznań market (ca. 70,000 m2) – according to a report by Colliers International.
Click here to download the report>>
Due to such a significant supply increase in Q1 2014, total warehouse space in Poland exceeded 8 million m2 and at the end of March reached 8.03 million m2.
Compared with the last quarter, the vacancy rate decreased by approximately 0.6 percentage points and at the end of March 2014 totalled 10.2 %.
Transaction volume in past three months amounted to 483,000 m2 and was smaller than in the record Q4 2013 (908,000 m2). New deals constituted 69% of demand, while renegotiations 31%. Additionally, ca. 50,000 m2 were leased within short-term agreements, which are not included in the transaction volume statistics.
Rents for warehouse space during the last 12 months have remained rather stable. A slight upward trend in rental rates could be observed only in regions where vacancy rates are rather low and demand is high.
Investors are still cautious about speculative purchases of investment land. Only those plots which are well prepared (accurate planning records, regulated legal status, preliminary agreements with utilities providers and precise regulations on road transport) have a chance to be effectively purchased by an investor.
Currently, a large number of investors are at the preliminary stage of choosing investment land (industrial land with an average size of 10 ha), the purchase of which is expected to be completed in Q2 and Q3 2014. Investors are mostly interested in such regions as: Warsaw, Łódź, Wrocław, Poznań and Upper Silesia.