2020 was a landmark year for the warehouse industry, which in the face of the global pandemic turned out to be one of the strongest branches of the Polish economy. Summaries for last year show that Poland was the number two European market (after Germany) for commissioning warehouse space, as well as number three on the continent for leased space. 7R, the only Polish industrial and warehouse developer to be in the Polish sector’s top three, summarizes its results for 2020.
7R has been active on the Polish warehouse market since 2008. In 2020, it leased a total of 406,895 sqm in 51 deals, with close to 97% of this total being new agreements.
At the end of December 2020, the volume of warehouse space under construction at 7R totaled 361,000 sqm, increasing year-on-year by 30% and, according to JLL, allowing the company to climb from third to second position in Poland’s warehouse sector. In terms of space delivered last year, 7R maintained third place in JLL's ranking, delivering 18 buildings in 14 developments with a total volume of 180,500 sqm.
"Year after year, our company records regular increases in leased space of around 35%. We are building large-scale logistics parks, as well as city warehouses which are part of 7R’s City Flex Last Mile Logistics network. Two-thirds of the space leased in 2020 were pre-lease agreements. Thanks to this model of cooperation, we were able, in the best possible way, to adapt the space to the individual needs of our clients. Last year also confirmed that tenants increasingly appreciate the high, ecological standard of warehouse investments. We have the experience and competence to deliver such space. We have also met our clients' expectations by increasing the clear height of buildings in logistics parks to 11.7 m, which of course increases storage possibilities," says Tomasz Lubowiecki, President of 7R.
An example of the importance of clear height in the warehouse sector is the largest contract on the Polish market in Q3 2020, which 7R signed as part of the BTS project for Żabka, the largest convenience store chain in Poland, in Radzymin near Warsaw. One of the buildings of the new Żabka distribution center is a high bay warehouse with a height of 40 m. The center has also been designed to reduce its carbon footprint. The facility will be powered by green energy from photovoltaic panels and will also benefit from smog absorbing materials and anti-smog towers.
In 2021, 7R plans to deliver facilities totaling approximately 600,000 sqm, with another one million sqm of investments that are at different stages of the development process.
"If necessary, we are ready to respond flexibly to market requirements and undertake the commencement of new projects. We have a land bank, building permits and a team with great experience, so we can build quickly and to the highest standards. We are going to strengthen our presence in Warsaw and in central Poland, as well as in Upper and Lower Silesia, Western Pomerania, and in the east of the country. We are investing in new locations, as well as expanding in existing ones. I believe that 2021 is going to be a very exciting year for 7R," sums up Bartłomiej Krawiecki, Member of the Board, Head of Development at 7R.
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