The demand for warehouse space rental during the first three quarters of 2024 remained at a level similar to that of the previous year. The intense expansion of developers, seen in recent years, has slowed down as the warehouse space available on the market has not yet been fully absorbed. From January to September, developers delivered to the market 2.1 million square meters of modern space, a figure 30% lower compared to the same period last year.
At the end of September 2024, warehouse resources in Poland amounted to approximately 34 million square meters, increasing their volume by 9.3%.
“After a record-breaking 2022 when developers completed a total area of 4.4 million square meters, the following years show less activity on their part. In 2023, the new supply was 3.7 million square meters, and in the first three quarters of this year, 2.1 million square meters were made available. Despite the less activity of developers, the result achieved so far is the third-highest over this period in Poland,” comments Szymon Sobiecki, a consultant in the market research department at Knight Frank.
The amount of warehouse space under construction is also decreasing. The outcome at the end of September 2024 stood at 1.95 million square meters. This represents a 2% decrease compared to the previous quarter and a 20% drop compared to the same period last year. What’s more, most of the under-construction area is already secured by pre-let agreements, and the number of speculatively built spaces has fallen.
In the third quarter, developers initiated warehouse projects with an area of almost 410,000 square meters, which is about 50,000 square meters less than in the second quarter of 2024. About 60% of the area at the execution stage, started during the June-September 2024 period, was secured by lease agreements.
“In contrast to the supply-side decreases, tenant activity remains stable. From January to September, the volume of signed contracts reached almost 3.9 million square meters of warehouse space, indicating a 4% increase compared to the same period last year,” adds Przemysław Jankowski, Director of Industrial and Warehouse Space Leasing at Knight Frank.
In the third quarter, tenants were most likely to choose objects located in the three largest markets, i.e., Warsaw, central Poland, and Upper Silesia. In these markets, 60% of the space from the total volume of contracts signed at 1.1 million square meters was leased.
As a result of stable demand and limited new supply, the vacancy rate in the third quarter fell by 0.2 percentage points to 8%.
Rental call rates remain stable. Typical rates for big box spaces range from 3.5 to 5 EUR/sq.m./month, while rents for urban warehouses range from 5 to 7.5 EUR/sq.m./month.
Source: https://ceo.com.pl/popyt-na-wynajem-powierzchni-magazynowych-pozostaje-silny-97765
