LCube enters 2024 with projects planned on purchased plots with a potential of 100,000 sqm and has secured additional land of about 65 hectares, which will enable the construction of another 300,000 sqm of warehouse space. Negotiations are also underway regarding another 20 hectares, which the company intends to reserve by mid-year. This provides a cumulative potential for the realization of over half a million square meters.
Recently, LCube has focused on strengthening its portfolio in the Polish warehouse market. Established facilities such as LCube Rzeszów Airport and LCube Szczecin Goleniów have been joined by new projects that are now under construction. Among them is Hillwood & LCube Wrocław East, set to span over 60,000 sqm, whose construction began last year in cooperation with Hillwood, a leading name in real estate development and investment. LCube also counts on a prompt start of works at the Mszczonów project, projected to encompass 32,000 square meters, enabling high storage – even up to 40 meters. Negotiations are currently ongoing with potential first tenants, and there is a possibility for the development of a technically advanced automated warehouse.
“Reflecting on the notably dynamic previous quarters, 2023 can certainly be characterized as a period of slowdown. It is now evident that the peak of activity in the warehouse industry was between 2020-22, when LCube began its operations. We are convinced that we are nearing an interesting and pivotal moment for the entire warehouse industry, mainly due to the interest in our market from investors, including those from abroad. Nearshoring projects, which have been much discussed, require a lot of preparation, but they will eventually start to become visible in the market – as evidenced by our agreement with the Chinese company Copper-Joint, which has become a new tenant at LCube Szczecin Goleniów", says Adrian Biesaga, LCube Management Board Member.
Experts, including Anna Glowacz, Head of Industrial and Logistics Space at AXI IMMO as quoted by the media, predict that while a return of investors and increased market liquidity are not expected until the last months of 2024, we are already witnessing a growing penetration of our market by funds, particularly interested in prime assets.
“Our market observations align with what experts have been discussing for some time. This is evidenced by data showing the warehouse sector continuing to lead Poland's investment market in 2023. Such trends may signal larger deals on the horizon, exemplified by the acquisition of an undoubtedly major player, 7R, by Scandinavia-derived capital. As a key player in this market, LCube is keen to be part of these developments and is actively monitoring them. The Polish warehouse market is experiencing rapid growth, now exceeding 31 million square meters, and offers competitive lease rates and energy costs, crucial for manufacturing. Projections suggest that Poland stands to gain considerably from the relocation of more companies in the coming years. At the same time, we are attaching great importance to remaining competitive, especially in terms of costs. In my view, cost control will be a critical strategic element for success in the Polish market", adds Michal Stachura from LCube's Management Board.
The standard of warehouses developed by LCube, which incorporates modern solutions to enhance cost efficiency while also certifying buildings to achieve well-considered ESG objectives, is recognized and valued by tenants. In addition to Copper-Joint in Goleniów, one of the drugstores operating in our market has recently become a tenant at LCube Rzeszów Airport, occupying 1,440 sqm in a newly built distribution centre that is suited both as a gateway to the Ukrainian market and as a last-mile warehouse for the Rzeszów agglomeration.
“Rzeszów is an often underestimated direction in the Polish warehouse market, yet it possesses extremely interesting characteristics that align with tenants' needs. It also exemplifies our approach to effectively developing our portfolio using modern solutions, tailored specifically to meet tenant requirements". concludes Adrian Biesaga.
LCube is implementing a strategy to build a diversified portfolio, ranging from smaller facilities (about 10,000 sqm) and medium-sized warehouses (50,000 sqm) to traditional big-box logistics parks (over 100,000 sqm). In addition to acquiring new projects, the developer focuses on meeting tenant needs and pursuing sustainable development.
