The motivation for investors to act is the constantly growing absorption of the Polish market. Last year, tenants received a record amount - 7.4 million sq m. warehouse space. Demand increased by over 40 percent. compared to the previous year.
The sector is growing at a pace we have never seen before. The annual market growth exceeded 15%. As much as 4.7 million sq m remains in the country. warehouse space. Only in Germany, more warehouses are built in the EU area than in Poland, notes Bartłomiej Zagrodnik, Managing Partner / CEO at Walter Herz.
The lack of warehouses available immediately means that the pressure on rent increases is growing. Already at the end of 2021, we could see a slight increase in the initial rental rates, generated by the rising costs of project construction. Opportunities for an increase in profitability in the warehouse segment in Poland are also created by the need to start new logistics destinations in our region in connection with relocating business from conflict areas. Investors leaving Russia may also generate demand here, he explains. Our Land Development service, under which we search and comprehensively prepare land for warehouse and production investments, is becoming more and more popular. We obtain WZ, make arrangements, analyze the efficiency of plots, prepare design preparations for exits / entrances, etc., providing investors with a comprehensive service and the most optimal solutions, adds Bartłomiej Zagrodnik.
Last year, several large lease transactions for over 100,000 sq m were recorded in the warehouse segment. sq m surface. The sector also turned out to be the star of the investment market, recording a record result in this case as well. Warehouse properties accounted for more than half of the volume of investment transactions worth EUR 5.9 billion registered in Poland. Nearly EUR 3 billion was allocated to the warehouse sector, which means an increase of 8%. y / y informs Piotr Szymoński, Director Office Agency at Walter Herz.
Despite the global turmoil, Poland maintains its position of a mature market that has to offer good-class real estate at relatively lower prices compared to Western Europe, ensuring attractive returns on investment compared to other countries. - Capitalization rates for warehouse properties on regional markets in Poland reach 5.0-5.5%, and in the Warsaw region around 4.0-4.3%. However, the confirmation of the continued good economic situation may be, inter alia, Another spectacular transactions recently concluded in the commercial sector, including the purchase of The Warsaw HUB complex in Warsaw, the Sky Tower in Wrocław, or a plot of land at Towarowa 22 in Warsaw, intended for mixed-use investment, says Piotr Szymoński.
Domestic warehouse resources at the end of 2021 amounted to 23.8 million sq m. surface. Last year, according to Walter Herz, developers delivered over 3 million sq m to the market. warehouses. The situation in the sector is conducive to the construction of new facilities, at least half of which are carried out on a speculative basis.