The latest report by BNP Paribas Real Estate Poland shows that in the first three quarters of this year, a record demand for warehouses was noted, amounting to almost 4.8 million m². The company’s analysts, also point-out that movement at construction sites, where work is currently underway, has also set a new record, with more than 3.7 million m² of modern office space under construction. As in previous quarters, the development of the sector together with an increased demand for logistics spaces, have been primarily driven by a rise in e-commerce, as well as an increase of companies operating in the logistics and trade sectors.
The market is red-hot at the moment. It is the highest historical precedent, where industrial and logistics facilities are being built and rented immediately. So far this scenario is not being hampered by rising labour or land costs, or any obstacles with relation to the availability of construction services or even building materials. However, it is more and more noticeable how significant time is becoming, especially for e-commerce customers. To meet and satisfy their needs, developers are being a lot bolder in reaching for investments on a speculative model basis, especially in the more obvious locations
Igor Roguski, Head of Industrial Logistics, at BNP Paribas Real Estate Poland
When looking at the projects we conduct for our clients, we can say that the industrial and logistics sector has proven to be significantly resilient to the crisis caused by the coronavirus pandemic. Additionally, the pandemic situation boosted investment activeness in the distribution centre area, as well as in the context of the e-commerce growth, including city-based warehousing, in particular SBU (Small Business Units) projects and last mile delivery facilities.
Błażej Czwarnok, attorney at law, counsel in the real estate practice of Gide Loyrette Nouel's Warsaw office
We can see a continuously growing interest of investors in the logistics industry, including relatively new JV cooperation with logistics developers, allowing a much wider group of investors to devote capital to this type of investment.
adds Błażej Czwarnok
The best results in the sector’s history and the continued interest in warehousing as well as logistics and industrial spaces, translates into a remarkably low vacancy rate. In the second quarter, it fluctuated around 6%, in the last one it fell to around 5%
adds Igor Roguski
Q-commerce is coming into being right before our eyes. Q is for the word quick, i.e. quick shopping, mainly groceries, which we can expect on our doorstep within several minutes of an order being placed. Interestingly, it is a fledgling market in which on the one hand, we have international and Polish start-ups, on the other one large retail chains playing a part. Strong competition and low margins will make the development of an appropriate logistics model the key to success
emphasizes Małgorzata Fibakiewicz, a Head of Business Intelligence HUB, at BNP Paribas Real Estate Poland