At the end of Q2 2021, developers were working on projects set to increase Poland’s stock of modern space by more than 3.3 million sqm. This represents a result not previously recorded for a single quarter as there is c.a. 34% more under construction than in the previous quarter
The highest volume of space is currently being developed in Upper Silesia (over 584,000 sqm) and in the West region (over 522,000 sqm). It is also along the country’s western border that the largest are being constructed. They include the Hillwood Rokitno logistics centre (112,500 sqm) located directly at national road no. 24 and Amazon’s tenth Polish logistics centre (203 500 sqm) in Świebodzin. With the opening planned for September, there are already more than 3 000 robots installed at the scheme owned by the e-commerce giant, and staff recruitment is currently underway. Ultimately, this modern logistics centre will create over 1 000 permanent jobs. On top of, also in three other logistics parks, the total space under construction will exceed 100 000 sqm, among which there are: GLP Lędziny Logistic Centre (111,500 sqm), Panattoni Park Poznań (107,800 sqm) where DHL is going to have its distribution centre, and lastly, Hillwood Bydgoszcz (102,000 sqm).
"Another quarter marked by the pandemic shows that warehouses and logistics space did not only not feel its negative impact, but actually received a strong impetus for further growth. Stable foundations, changes occurring on the e-commerce market with increasing speed, and new strategies for using schemes of this type, including changes in supply chains, nearshoring and the demand for smaller schemes in large agglomerations, present an optimistic scenario for the sector", says Igor Roguski, Head of Industrial and Logistics, BNP Paribas Real Estate, Central Eastern Europe, BNP Paribas Real Estate.
The market closed the first half of the year with a total stock of nearly 22,000 sqm. The second quarter only saw the completion of schemes with the area of nearly 420 000 sqm, with the markets in the Tricity, Kraków, and the Warsaw II zone growing most.
The authors of the report from the Business Intelligence Hub and Consultancy at BNP Paribas Real Estate Poland stress that the logistics and industrial sector is still on a roll as evidenced by yet another all-time high result in terms of gross demand (excluding short-term leases). At the end of the first three months of 2021, it stood at approx. 1.6 million sqm, while in the following quarter it reached a volume of over 1.78 million sqm. The most demand in that period was recorded for schemes located in Upper Silesia (gross demand of 345,000 sqm) and around Poznań (gross demand of 287,000). The exceptionally good health of the sector is corroborated by an increase in demand of over 40% when compared to the corresponding six-month period in 2021 and 2020. Moreover, experts at BNP Paribas Real Estate Poland point out that 3 out of 4 leases signed were new leases (which include leases signed for buildings being under construction) and expansions. The low vacancy rate further confirms that warehouses are in demand and the process of finding occupiers for new schemes is running exceptionally smoothly. As at the end of the second quarter, it stood at approx. 5.8%, which was a result lower than that recorded in the first quarter (by 0.8 percentage points) and a year ago (by 1.2 percentage points).
"The logistics and industrial sector is flourishing, demand is strong and leases have been secured for a significant share of newly constructed schemes. A higher number of warehouses means there will be more jobs available. It is clear that an experienced and qualified workforce is worth its weight in gold and the market is absorbing it instantaneously. Employers are competing hard, not only by offering attractive remuneration but also by striving to improve their workplace environments and proposing various benefits", comments Klaudia Okoń, Consultant, Business Intelligence Hub and Consultancy, BNP Paribas Real Estate Poland
The new industrial and logistics projects have been consistently activating local labour markets for several quarters now, which in most cases face the economic consequences of the Covid-19 pandemic. The authors of the report point out that more than 5,000 people will be able to find employment in the largest schemes being developed for the e-commerce giants alone.
