Industrial market characterized after H1 2014

JLL presented its newest report Poland’s Industrial Market in H1 2014. According to the research, Upper Silesia remains the second largest submarket in Poland and dominates in the country together with Warsaw Suburbs, leaving behind such markets as Central Poland, Poznań and Wrocław. Also, the report reads that largest lease transaction was secured in Katowice agglomeration.

The total supply in Upper Silesia amounted to 1 452 500 sq. meters at the end of the second quarter this year. However, only 22 000 sq. meters of new industrial space were delivered to the market over the first six months of 2014. The vacancy rate in the region remains stable and currently amounts to 9,4%, equating to 137 000 sq. meters of unleased space. The Upper Silesian market offers space from EUR 2,4 to EUR 3,3 /sq.m/month. Prices of industrial land range between PLN 90 and PLN 200 per one square meter.

The gross industrial demand exceeded 912 000 sq. meters at the end of H1 2014 in Poland. 18 percent of the volume – 168 000 sq. meters – was leased in Upper Silesia. 119 000 sq. meters of the gross take-up were lease renewals, which is a feature of mature markets, according to JLL. In addition, tenants in the region were the most active after Warsaw Suburbs.

The largest lease transaction in Poland in the first half of 2014 was the renewal contract of 45 800 sq. meters signed by Carrefour in Distribution Park Będzin. Also, another three deals secured in Upper Silesia were listed amongst twenty largest transactions in Poland in H1 2014 – Archidoc leased 16 500 sq. meters in ProLogis Park Chorzów (renewal), DHL occupied 12 700 sq. meters Panattoni Park Mysłowice (new deal) and Nexteer chose Diamond Business Park Gliwice where 12 600 sq. meters were renewed by the firm.

© JLL; summary of the industrial market in H1 2014
© JLL; summary of the industrial market in H1 2014