The scale and number of transactions in storage real estate in Central and Eastern Europe makes it one of the fastest-growing markets on the old continent. Investors generally are following the growing demand for warehouse space resulting, among other things, from the growing role of e-commerce. At the same time, the strategic location on many north-south and east-west international routes makes the CEE region of Europe a highly desirable destination for warehouse locations. It is one reason why this sector is the only real estate segment currently experiencing year-on-year growth.
Specialists agree that the strongly saturated and competitive western European markets no longer create such attractive opportunities for investors as those provided by CEE markets. Looking at the number of transactions carried out over the past months, it is clear that the investment potential is now being recognised by the largest market players, who are now deploying significant capital in this part of Europe.
What is more, the growing demand from tenants for modern warehouse space, which is also developed in the build-to-suit (BTS) formula, confirms that the steps taken thus far have been very well informed. The stand-out and largest transactions completed in the CEE region over the last year include:
Poland, the region's largest market, experienced a significant increase in the volume of warehouse leases in the first half of 2020, up by 25% year-on-year to 2.38 million sqm. Especially noteworthy: new leases and expansions accounted for 75% of total volume Among the largest lease transactions on the Polish market were:
Further projects are expected to be launched in Poland in the near future, with much focus on Upper Silesia. The exceptional JV of DHL Supply Chain Polska is worth noting: it signed an agreement with Silesian investor and developer DL Invest Group JV to construct the logistics centre DL Invest Park Psary to provide 200,000 sqm of new warehouse space.
Now, having built its portfolio to a value of over PLN 1 billion, DL Invest Group continues to actively pursue its development strategy in the Polish market, based on strong tenant demand.
„Apart from the cooperation with DHL Supply Chain, we are also carrying out a number of BTS projects for Hutchinson, Still, Gefco, Hanex and InPost," says DL Invest Group CEO Dominik Leszczyński. "We are currently working on the expansion of our logistics platform in Poland, where in the next 2-3 years we plan to build from 12 to 14 BTS warehouses for e-commerce companies among others. The projects will be built on land we already own, where the area already allocated for the development of logistic projects currently amounts to 1.6 million sqm. We have invited international investors to cooperate with us and are talking to potential partners about financing further projects. The interest is high."
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