Upper Silesia remains largest regional warehouse market in Poland

Q1 2016 saw a further increase in leasing and development activity on the industrial and warehouse property market in Poland, according to the latest report by Cushman & Wakefield. The Upper Silesia region remained the largest regional market on the warehouse map of Poland.

Approximately 1 850 000 sq. meters of modern stock were recorded in Upper Silesia as of the end of March 2016. In Q1 2016 approximately 86 000 sq. meters of new warehouse space were delivered to the market, which was almost three times more than in the same quarter of 2015 (30 000 sq. meters). Warsaw Suburbs accounted for the largest amount of space delivered to the Polish market (141 000 sq. meters) last quarter, followed by Upper Silesia.

The first quarter still indicated a healthy development activity in Poland, with some 783 000 sq. meters of modern warehouse space under construction. More than 75% of this volume was found on main industrial markets, such as Poznań(184 000 sq. meters), Warsaw Suburbs (110 000 sq. meters), Central Poland (106 000 sq. meters) and Upper Silesia (91 000 sq. meters).

Take-up remained at a high level in Upper Silesia and stood at 144 000 sq. meters, almost doubling the result recorded in the Q1 2015. Warsaw Suburbs boasted the second highest leasing volume (140 000 sq. meters).

Among transactions conducted in Upper Silesia in Q1 2016 and mentioned by Cushman & Wakefield in the report are leasing agreements signed by GTX Hanex Plastics, a leading manufacturer of thermoforming film, preform sand PET bottles in Poland, which has renegotiated a contract of over 4 600 sq. meters in Prologis Park Dąbrowa as well as RTV Euro AGD, a countrywide household appliances retailer, which has leased approximately 1 400 sq. meters in Prologis Park Chorzów.

Vacancy rates at the end of March 2016 reached 4,3% (80 000 sq. meters) in Upper Silesia, posting a decrease by 4,2 p.p. year-on-year. Base rents in the region stood at EUR 2,9 – 3,4 per one square meter per month. The effective rents were between EUR 2,2 – 3,1 per one square meter per month.

© Cushman & Wakefield; supply and total stock at the warehouse market in Poland in Q1 2016
© Cushman & Wakefield; supply and total stock at the warehouse market in Poland in Q1 2016