Piotr Roszkowski, Senior Consultant in the Industrial Department of AXI IMMO on the structure of the warehouse market in Poland in the Lubuskie Voivodeship. Read on or listen to the podcast (only in Polish). about the demand and supply as well as other factors shaping the real estate market in the Lubuskie Voivodeship, as well as about the opportunities for the region.
Lubuskie is a relatively young warehouse market, with activity focused on towns of Zielona Góra, Gorzów Wielkopolski, Świebodzin and Słubice. The region has been experiencing particularly robust occupier activity in recent years on the back of heightened demand from firms serving Western European customers. One of the largest logistics centers in the country, with planned GFA of over 200,000 sqm, is currently under construction in the region. What is the current situation and prospects for the warehouse market in the region was checked by AXI IMMO experts.
Total stock of warehouse space in the Lubuskie voivodeship increased by 26,000 sqm in H1 2020, to 316,000 sqm (+22.4% y/y). Interestingly, there was approx. 20,000 sqm of modern warehouse and logistics space in this market as at the start of 2017. In percentage terms, no other market in Poland has grown more robustly during this period.
“Lubuskie is a new, fast-growing warehouse location in Poland. It attracts occupiers thanks to its convenient location along the Polish-German border as well as excellent road infrastructure, including the A2 and A4 motorways and the S3 expressway towards Szczecin. Apart from good quality roads, the region also boasts a well-developed rail network and an airport. It is a good location for local and foreign distributors and producers serving Germany, for whom it offers an opportunity to reduce operating costs. Moreover, there is almost 1300 ha of investment land available in the region’s Special Economic Zone” – comments Piotr Roszkowski, Senior Consultant Industrial & Logistic at AXI IMMO.
There is currently 225,000 sqm of warehouse and logistics space under construction in Western Poland. Panattoni has been contracted to deliver a new distribution centre with a GFA of 203,500 sqm for a confidential e-commerce occupier. This facility, combined with another scheme under construction – Hillwood Słubice park (21,500 sqm) – will increase the size of the market to 540,000 sqm.
There was no vacant space in Western Poland as at the end of June 2020, due in large part to the dominance of BTS schemes in this market. Headline rents have remained stable at EUR3.5-3.7 per sqm. Recent large leasing deals have pushed take-up to unprecedented levels, with 214,000 sqm recorded in H1 2020 overall. Other than the record lease signed by the undisclosed e-commerce company, two large lets were signed in Q1 in Panattoni Gorzów – 6,500 sqm for Omnipack and 3,700 sqm for Logoplaste. Logistics operators and firms from the automotive industry are the most active groups of occupiers in this market.
“Two capitals of the voivodeship – Zielona Góra and Gorzów Wielkopolski – attract a bulk of warehouse occupier activity. Zielona Góra offers large multi-tenant warehousing facilities, which are largely occupied by logistics firms. Meanwhile Gorzów Wielkopolski is a popular choice for furniture producers, firms from the automotive industry and international logistics firms. Gorzów is dominated by BTS (built-to-suit) schemes, with only one existing logistics park managed by Panattoni. Similarly, the Nowa Sól market comprises mainly large BTS and BTO (built-to-own) schemes. Here, the occupier base is made up of companies from the construction, metals, automotive and food industries. Świebodzin, located at the crossroads of the A2 motorway and the S3 expressway, is the site of the mega distribution hub for e-commerce that is currently under construction by Panattoni. Aside from this record large scheme, Exeter logistics park and several BTS facilities are located here. Finally Słubice, which border with Frankfurt (Oder) and are located just 70km from Berlin, are worth mentioning. In the coming years, we expect that towns of Iłowa and Krosno Odrzańskie, which currently have a few small warehouse facilities, will also grow in importance thanks to their proximity to the German border” – adds Piotr Roszkowski from AXI IMMO.