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Total warehouse stock exceeds 2 million sq m, logistics operators dominate in the structure of demand
Warsaw, December 2, 2013 – Jones Lang LaSalle presents the Warsaw Suburbs Industrial Market Profile after Q3 2013.
Kamil Szymański, Business Development Manager, Industrial Agency, Jones Lang LaSalle, commented: “With the threshold of two million sq m of existing warehouse stock being crossed in Q3, the Warsaw Suburbs region is by far the largest industrial hub in the country and also in the wider CEE region. This can be put down to the proximity of the capital city - the country’s economic powerhouse and largest urban area; as well as the on-going improvements to the region’s connectivity, in particular with regard to the road network. The area has recently gained access to the European motorway network. Also, the new S8 exit road from Warsaw towards Wrocław will open new development opportunities. However, road investments can also introduce some changes to the regional market landscape as the improved access to the Central Poland via the new A2 motorway might markedly raise the attractiveness of that latter region”.
The Warsaw Suburbs zone extends approx. 50 km from Warsaw (excluding the city itself), with the largest hubs being found to the west and south-west of the city (Pruszków, Ożarów Maz. Błonie, Teresin, Sochaczew, Nadarzyn and Piaseczno).
Demand to slow down in the last quarter During the first three quarters of 2013, the Warsaw Suburbs region attracted new demand totalling 142,000 sq m ( y-o-y increase of 13.5%). National comparisons additionally underline the strength of this region: during that period it accounted for as much as 22% of net take-up in Poland. The vast majority came from the 3PLs (62% of all newly leased space), with retailers coming second (19%). Simultaneously, lease renewals amounted to 70,000 sq m, up by 10% on 2012.
The average size of a new lease in the first nine months of 2013 was barely over 3,800 sq m, down from the average of more than 4,700 sq m registered in the same period of last year. This can be put down to a low number of large deals (larger than 10,000 sq m) on one hand and the high availability of smaller units (smaller than 3,000 sq m) offered at reasonable rents on the other. A new phenomenon seen at the moment is the increasing number of short-term deals. This is particularly the case for developments with high vacancy rates, where landlords, in order to mitigate them, are now less reluctant to offer leases of shorter than two years than they were in the past.
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