Advisory firm AXI IMMO has explored which office markets within Warsaw are most sought after by logistics companies. Data on office locations of forty companies from the sector has been analysed to capture the main trends for the Warsaw market.
According to our analysis, proximity to the cargo terminal at the Chopin airport is the main factor determining where logistics companies operating in Warsaw decide to locate their headquarters or representative offices. For this reason, South Warsaw (Mokotow, Ochota, Ursus, Ursynow, Wilanow and Wlochy districts) have been chosen by 65% middle and large logistics companies. Moreover, every other company from this group has located in the Wlochy district. Meanwhile, North Warsaw (Bialoleka, Praga Polnoc, Targowek and Zoliborz) have been chosen by just 20% of occupiers.
South Warsaw has been chosen by 65% middle and large logistics companies. Moreover, every other company from this group has located in the Wlochy district.
„15 out of 40 analysed logistics companies are based in the Wlochy district. It is a logical decision from the operational point of view as it shortens the drive time to the cargo terminal to a minimum. This helps speed up administrative procedures at the customs office linked to receiving and sending cross-border shipments.” says Jakub Potocki, Negotiator in AXI IMMO’s office department.
The Okęcie zone comprising parts of the Włochy, Ochota, Mokotów and Ursynów districts is home to 60% of offices occupied by logistics companies within Warsaw. It is worth mentioning that 80% of medium and large companies (32 out of 40) located their offices in districts that enable quick entry and exit from the city (Białołęka, Ochota, Praga-Północ, Targówek, Ursus, Ursynów, Wilanów, Włochy, Wola i Żoliborz).
„Southern Warsaw has two additional selling points. Firstly, most of the city’s distribution warehouse stock is located in its South Western part. A company’s decision to locate the headquarters or office in close proximity to its warehouse translates into efficiency – the drive time between the two is shortened to a minimum. Secondly, this part of the capital has excellent access to the most important roads in the Warsaw agglomeration. This includes the Southern Warsaw Ring Road which is currently under construction, as well as the A2 motorway and the S7 and S8 expressways. What’s interesting, part of the S7 on Al. Prymasa Tysiąclecia had for years been used as the western ring road for Warsaw. Now this function is fulfilled by the Konotopa interchange, which in a way prevents cargo trucks from entering the city centre” adds Danuta Dzierżak, Associate Director, Industrial and Logistics Agency, AXI IMMO.
Given the high concentration of offices occupied by logistics companies in the Okęcie zone, we can call this part of Warsaw the city’s office hub for logisticians. Okęcie/Włochy is an attractive location for regional and national logistics operational centres. In addition, relatively low rents entice logistics occupiers to this submarket. A-class office space commands EUR12-EUR14.5 per sqm, compared to EUR19-EUR25 in the City Centre or EUR16-EUR23 in the increasingly popular Wola district.
„Of course there have always been and there still will be companies that want an office in the city centre or in other prestigious parts of the city. Such a decision is more likely to be made by larger companies, especially those operating globally. Even for this type of organisations, however, Mokotów-Służewiec or Ochota offer more favourable conditions for occupation. Such locations are a sort of compromise, offering attractive office space in buildings of a high standard” says Jakub Potocki.
„Until now, some office occupiers from the logistics sector have set up offices within their warehouses or have chosen low-grade office buildings in close proximity to their warehouses. But this is changing. Logisticians are gradually relocating to more modern premises with more amenities, mainly in an attempt to attract and retain qualified staff” adds Jakub Potocki.
The potential of Southern Warsaw has been noticed by office developers. In comparison with schemes located in the city centre, there are no high office towers here due to the proximity of the Chopin airport. This office submarket is dominated by business parks such as Business Garden (Vastint), Flanders Business Park (Liebrecht & wooD), Poleczki Park (UBM Develpment) or The Park Warsaw (White Star). Occupiers that base themselves in Warsaw’s Włochy district have better access to green spaces, often including recreational areas, as well as a higher number of parking spaces.