Upper Silesian industrial market by CBRE

Latest “Poland Industrial Destinations 2014” report prepared by CBRE shows that the supply of modern warehouse space in the Katowice agglomeration reached 1,48 million sq. meters at the beginning of 2014.

Silesia strongly benefits from a strategic location within the Central European technology crescent, with the existing and planned road infrastructure (express road towards Warsaw, motorway Kraków – Wrocław – the German border), considered to be the best road network nationwide. The area took a great advantage of the Katowice Special Economic Zone which was ranked 11th in Global Free Zones of the Future 2012/2013, fDi Magazine’s global ranking of economic zones.

Historically, the region of Silesia has been dominated by the mining and metallurgy industry. Today the region is said to be a key automotive hub in the CEE region, with manufacturing plants for GM (Gliwice) and Fiat (Tychy). Other significant business drivers for the region are the energy, information technology, retail and other key industry manufacturing sectors. Amongst the automotive supply chain industry, other large investors in the region include Delphi Automotive Systems, Roca, NGK Ceramics, Isuzu Motors, Brembo and Electrolux.

Environmental risk connected with pollution and mining damage, and competition from other large metropolitan areas including Wrocław are named as the main threats of the agglomeration’s warehouse and industrial market expansion. According to CBRE, Upper Silesia and Wrocław compete strongly. Upper Silesia, second largest Poland’s market, recorded an increase of unoccupied space last year – by ca. 5 percentage points. Therefore, its vacancy rate reached 10% with Wrocław at 6,5% and Kraków – 5,1%. Relatively high labour costs and pollution of environment is detrimental for Upper Silesian locations. On the other hand, due to lower rents, developed communication infrastructure and incentives for developers and simultaneous equalisation of differences between the cities in the region, Upper Silesia may reverse this disadvantageous trend. Wrocław’s troubles resulting from the delays in the realization of road investments (S3, S5 and S8 which are only about to connect Lower Silesia’s capital with Warsaw, Poznań, northern Poland and the Czech Republic) play to the Upper Silesia’s advantage.

Completions of modern warehouse and industrial stock of Upper Silesia amounted to 56 100 sq. meters in 2013, while the take-up exceeded 349 000 sq. meters last year. Prime headline rents vary from EUR 2,9 to 3,4 month/one sq. meter.

Largest new rental deals on the market included Inter Cars (25 800 sq. meters in Goodman Sosnowiec Logistics Center), Dayco (18 900 sq. meters in Segro Industrial Park Tychy) and DHL (12 700 sq. meters in Panattoni Park Mysłowice). Renewals include: DHL (21 800 sq. meters in Goodman Racibórz BTS), Coty (16 900 sq. meters in Panattoni Park Bielsko-Biała) and Saint Gobain (15 400 sq. meters in Panattoni Park Czeladź).

© CBRE; map of existing and planned project of warehouses and industrial locations in Upper Silesia
© CBRE; map of existing and planned project of warehouses and industrial locations in Upper Silesia