Prime Logistics Wrocław and logistics service provider LX Pantos have signed a lease for 100,000 sqm. The transaction saw LX Pantos renegotiate its contract and expand to a new building to consolidate its warehouse space in a single location. This marks the largest warehouse deal in Poland this year. LX Pantos was advised by Cushman & Wakefield. CBRE advised the owner of Prime Logistics Wrocław, Brookfield Properties.
Established in 1977, LX Pantos provides optimized logistics services worldwide. Its wide range of services including sea, air and rail freight has seen it grow at a rapid pace – LX Pantos is present in 380 locations across the globe, including 30 in Europe.
"The location of the facility plays a key role in our development strategy. The proximity to our most important customers, especially from the LG group, allows us to continue to grow and expand our business. It is thanks to their trust that we can achieve joint successes and build long-term partnerships. Size of warehouse space is also high importance to ensure high-quality service to our customers. Having adequate space allows us to be flexible in logistics activities, enables us to quickly complete orders, shorten delivery times and adapt to the growing market requirements, especially in the B2B segment and the dynamically developing B2C industry", comments Piotr Zienkiewicz, Senior Logistics Manager, LX Pantos Poland.
"It is the biggest lease on the Polish warehouse market this year and one of the largest of the last eighteen months or so. The warehouse sector is heading towards stabilization with a decline in large-scale transactions for dozens of thousands of square metres that were more common in earlier years. The Polish market, however, remains the most attractive in the CEE region and continues to attract leading companies such as LX Pantos. Location was key to this transaction as the site is well served by transport for the supply chain of LX Pantos’ clients. Various gravity point analyses we carried out and scoring matrix reports revealed that operations from the warehouse in Prime Logistics Wrocław would be the most cost- and time-effective, further aided by the consolidation of warehouse space. In addition, we took measures to optimize the tenant’s operating costs by installing the latest lighting solutions including a DALI system", comments Damian Kołata, Partner, Head of Industrial & Logistics Agency Poland, Head of E-Commerce CEE, Cushman & Wakefield.
Completed in 2020, Prime Logistics Wrocław offers 98,700 sqm of warehouse space. It is located off Pietrzykowice interchange of the A4 motorway and the A8 ring road. It sits 13 km from the centre of Wrocław and 14 km from Wrocław Airport.
"We are pleased to continue our long-term relationship with the team at LX Pantos and support them in their growth with additional space at our high-quality warehouse in Poland", says David Ziller, Vice President of Asset Management at Brookfield Properties.
"Prime Logistics Wrocław is, on the one hand, a perfectly located facility and, on the other hand, top-class warehouse space. The location, quality of space, and adaptability are the undoubted advantages of this investment, appreciated by the tenant. As an advisor, we greatly appreciate the opportunity to support and advise a partner such as Brookfield Properties in the whole leasing process", says Kamil Kugaudo Associate Director, Head of Landlord Representation Industrial, CBRE.
According to data from Cushman & Wakefield, the first quarter of 2024 saw more than 870,000 sq m of industrial space transacted – this represented a year-on-year decrease of 25% and the lowest figure since the second quarter of 2019. However, Europe as a whole also experienced a double-digit drop in take-up of 22% year-on-year, so Poland remains one of the top-performing European markets for leasing activity despite a marked slowdown from previous years.
"Demand is weaker than in the past quarters due to the market stabilization on the one hand and occupiers’ focus on optimizing their operations on the other. This has also translated into more subdued activity of logistics companies which usually account for 30-40% of take-up. However, we have recently seen an increase in enquiries from logistics service providers and the transaction finalized by LX Pantos shows that the 3PL market has not said the last word yet. Logistics outsourcing is poised for growth in the years ahead", adds Damian Kołata.
