Warehouse market to pick up in H2 2010?

2010-02-08

The second half of this year should bring an increase in contracts concluded on the Polish warehouse market, according to Rzeczpospolita. Specialists have observed growing interest in warehouse space from potential tenants and if this trend is translated into more transactions the present year may well turn out to be much better than 2009. Any such upturn will be driven by, among other things, logistics operators' plans to broaden the scope of their operations. Demand for warehouse space is expected to accelerate in the coming quarters and, as a consequence, the vacancy rate for such space will diminish, whereas rents may increase.
Analysts expect investors to embark on a number of new warehouse investments this year, but the majority will be BTS-type projects designed for specific tenants. Moreover, the majority of speculative projects in the sector will be small, local undertakings.
In the opinion of market analysts cited by the newspaper, Poland is an attractive location not only for domestic firms but also for foreign tenants and developers. The former are choosing to locate their headquarters in Poland because warehouse rents are among the lowest in Europe, while the latter are lured by Poland's central geographical location on the continent and its large domestic market.

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