The Industrial & Logistics property sector has continued to thrive and the total I&L stock for the CEE-15 region has grown within last two years to exceed 50 million m², with 20 million m² situated in and around the 15 capital city markets. Poland, as the largest country of the group covered in this report, also maintains the largest I&L market and is approaching the 25 million m² mark.
During the pandemic, we experienced greater interest from tenants’ from both the e-commerce sector and logistics operators offering their services to retailers and internet trading companies. The trend toward e-commerce will continue to grow, but this growth will be slower than at the beginning of the pandemic. The ongoing war in Ukraine has caused further disruptions to supply chains, rising fuel prices and lower availability of construction materials. These factors all greatly influence not only the I&L markets in CEE-15 but also around the world.
In this report, we will also touch on some of the trends facing the sector across the CEE-15 countries covered. Apart from the traditional demand for larger formats, this includes a look into Small Business Units and Last Mile Logistics.
Key findings:
- The total I&L stock for the CEE-15 region has exceeded 50 million m², with 20 million m² situated in and around the 15 capital city markets.
- The total stock of Small Business Units and Last Mile Logistics space in the CEE-15 markets accounts for more than 3 million m², with the vast majority located in Poland (ca. 2 million m²).
- The war in Ukraine has caused significant challenges to the market including disruption in global supply chains, rising fuel, energy, labour and material prices and moreover lack in supply.
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