Business report
Polish Real Estate Market
Office market
Poland – general
Following several key reforms in 1992, Poland had witnessed a revolution in the economic movement in the early age of 1990s. Like other financial markets, the contemporary and modern day office market commenced on emerging with an early wave of innovative office construction beginning with high political and financial investment – Warsaw.
In wake of 1996, yearly supply stayed just below 50,000 m2 that was considerably less than the rapid growing demand. Because of the sterile local development and financing circumstances, supply was responding with slow pace at the beginning. We have experienced a rapid increase in supply at second half of the decade, as Poland was able to keep its political steadiness and resonance monetary fundamentals. The rapid amplification sustained in the first division of this decade, primarily dealing with pent-up stipulation and demand from decades of low down supply, but afterwards it was resulted in a boom in the office supply in numerous main towns and cities in Poland. In general, rents were followed a sound demur from the 1990s to 2005. After2009, it demonstrated a U-turn of this trend, with a sign of a growing office market and at the same time, new buildings approach to market with a timely and appropriate response to demand which helped to calm down rents and vacancies. Though the economic crisis had affected the situation for the time being, Warsaw retains as the biggest office market in Poland and still draws a great developmental activity. Alternatively, other regional trade centers have penetrated the passage of strong financial growth, mounting interest in modern office adjustment even in far smaller towns and cities. As long as new projects are under construction, the largest construction activity was occured in Kraków, Wrocław and Tri–City in 2013. On the mainstream of Polish office marketplaces, 2011 was one the toughest years in the aspects of new supply. The stern lending criteria executed by banks after 2008 and demonstrated most of the investment activities. At present, construction activity is rapidly getting better. The annual stage of new supply in 2013 calculated to almost 380,000 m2, which demonstrated appreciably higher development and growth in contrast to preceding years. The stage of total turnovers in 2013 was recorded as the highest annual value in Poland ever since 2000.
New supply recorded to 643,000 m2 in 2015, but there also needs some other things into consideration; emergent trend will persist in the following years. In 2015, the total amount of office stock in Poland estimated to 8.2 million m2. As much as new projects are now under construction and projected, the leading construction action will be occurred in Warsaw, Tri–City, Kraków and Wrocław in 2016.
Focus on Warsaw
The new office market in Warsaw was set up to develop quickly at the start of the 1990s. it was developed in reply to the ongoing Polish political shift and monetary reforms and followed by a expansion period in recent times which played the most important role in Warsaw.
Because of its fundamental role and convenient position, the Polish capital city has gained a noteworthy portion of the inflow of overseas capital. Many foreign companies, including with a number of financial institutions, consulting agencies, as well as international organisations, frequently choose Warsaw as a place of their HQ’s in Poland. Besides, Warsaw has conventionally been the most vital administrative and business hub for local companies. This augmented to speedy increase of demand for modern day office across the city. From the year of 1990 to the first half of 1998, it demonstrated a rate of 98% to 100% tenure as well as presented one of the topmost hiring levels for office room facilities among the most European cities.
Supply
the year 1998 was considered as the first remarkable date for modern day office space and facilities and office supply had been become doubled from the total volume of 300,000 m2 done between the year of 1989 and 1997, to the volume of 680,000 m2 within the duration of one year. After Two years, stock increased around 1,360,000 m2 and even though 54% of this was comprised mostly in the city center, the year of 2001 estimated the conclusion of the central place’s supremacy in new yearly supply. With the exclusion of 2003, annual release of modern day office space and accommodation facilities in non-central places surpassed central, and the inclination sustained through 2016. At the ending of first quarter of 2013, the entire modern day office space system in Warsaw has gone above 4 million per m2, with non- vital positions delivering around 70%. Warsaw is the most developed office oriented marketplace in Poland with a full amount office stock of just about 4.6 million m2.
Since the supply for new accommodation and space achieved and exceeded demand, the marketplace experienced vacancy rates climb up to very high and top levels. Beginning from between 4 and 6% in the year of 1998, the building delivered vacancy rates to an increase of 20% in the city center and another 16% in the nearest outskirts from 2000 to 2002. As the market became stable, and non-central places became the standard rather than the exclusion, central and non-central places rise back and forth between range of 15 to 19%, with non-central positions decreasing below the 10% spot (7% on average) in 2004.
in spite of of the quantity of central positions to non–central positions, the approximate vacancy stage in Warsaw has thoroughly declined as of 2002 until 2007, while central and non-central job rates estimated at the rate of 3.4% and 2.9% correspondingly. With the predicaments came in place of this trend, vacancies had risen up to twice to over 7% in 2008 and 2009. In the year of 2010, vacancy rate was remained constant at the level of 8%. Because of increasing demand for office space accommodation and limited achievement in 2011, the pace in vacancy rate slowed down in Warsaw and reached 6.7%. However, around 8.8% was marked as unoccupied at the end of year 2012. Due to the several noteworthy numbers of new projects done in 2014, the vacancy surpassed the mark of 13%. At the end of year 2015 the vacancy rate decreased to some extent, reaching the mark of 12.3%. It is anticipated that the vacancy level will go up a new level within the next few years and older building structures will counterpart with numerous difficulty and struggle with new projects.
On the basis of place and location, the modern day office supply in Warsaw can be separated into two clusters: central and non–central.(see EY_Real_estate_guide, p.5-7, last paragraph)
Yearly new stock level reached to a new point in the year 2000 whilst 360,000 m2 was included to supply and marked as the most successful growth year since 2005, when there has been 120,000 m2 of new office supply added.
In 2010, it had been experienced the accomplishment of more than 200,000 m2 of new stockpile, although this was designed well before the disaster and these projects had achieved financing security in advent of new stricter lending policy. In 2011 around 120,000 m2 were conveyed to the market place. The majority amount of office space is in the office buildings situated on the outside of the city center. Market observed a higher increase in new office supply in 2012, which estimated to the volume of 270,000 m2. 2013 was a record breaking year and office space conveyed to the market was seen exceeding 300,000 m2. There was slight slowdown in new supply in 2014 which estimated to a volume of 280,000 m2. In 2015, it reached the marked 280,000 m2 new office as similar to the year 2014. Like previous years, majority of the new office buildings had been placed in non-central locations. It has been expected that Warsaw will reinforce its position quickly in terms of new office accommodation over the upcoming years.
According to project statement, it has been estimated that more than 400,000 m2 of modern day office space will appear in the Warsaw market in 2016. Approximately half of the designed office space is situated in the city center. Nevertheless, that forecast is subject to a number of different variables and conditions, as developers and their clients my take a more watchful approach to provisional projects. It is specified that several number of these schemes will be belated in anticipation of such occasion when realistic stage of pre-rental scheme has been attained.
Demand
The application for modern day office space derives mainly from:
Polish and overseas companies who are mostly supported in Poland and have taken part in the rapid financial growth;
New participants enter into the Polish marketplace, predominantly apparent in 2004, just after attainment to the European Union marketplace and again during the year of 2007 and 2008;
the new-fangled “Services and Information Economy” escalating the need for advanced and modern office space. Especially Poland has got benefited immensely from Business Process Off shoring (BPO).
State entities has drawn the attention of leasing office accommodation and space rather than holding self-owned, typical and low quality buildings.
The Growth had blown up in 2007, accomplishing approximately 500,000 m2 and took up to 525,000 m2 in the year 2008. But the next years have been experienced symptoms of a decline in the market predominantly for office space and accoumodation in the polish capital Warsaw. The total amount of leasing contact calculated to 210,000 m2 in 2009 which was almost 40% of the preceding year’s volume. Therefore, the market had been relegated to principally small lease projects.
At present, demand is not much driven as before in terms of business growth and development. Rather tenants are relocating increasingly either to advance their accommodation or to decrease expenditure by optimizing space. Due to the catastrophe in 2008/2009 a number of tenants abridged their accommodation and were looking for sublet the excess. This situation got changed in 2010. Demand has recovered because of a healthier economic atmosphere and positive forecasts. In the year of 2013, a record quantity of office space and accommodation (633,000 m2) were projected. Demand slightly dropped by 3% to 612,000 m2 in 2014. But in 2015, total office space accomplished almost 834,000 m2 showing36% expansion in comparison to 2014.
Rents
Along with the standard supply and demand representation, rents mounted in the belated 1980s and early on 1990s as Poland unlocked its borders to attract foreign investment, and the supply of modern day office accommodation was tremendously limited. Demand for modern day office space and accommodation pressed rents to their pinnacle in 1991 of USD 50/m2 per month for the advanced and up to date office space of comparatively deplorable quality.
With such inadequate supply accessible, there had been experienced small allocation in the Warsaw office space market which results in equally central and non-central places having similar types of rent rates.
The first building boost of the later part of 1990s created overall rents rate down, but it was primarily the beginning of out-of-town office sparks around in 1996, which collaborated to make differentiation on costs between central and non-central positions.
The late 1990s observed a rise of 25% to 30% rents for current advanced city center offices which is characteristically higher than for the offices located in remote locations. However, not all of the differentiations can be accountable for by location only, as non-central places were constructed for more affordable prices which are prepared to allow a lower standard.
The second section of the boom transported with it supplementary augmentations in supply and a later plunge in overall rent systems in the early 21st century. This created the gap between locations momentarily, but more demanding customers assisted to elevate the quality of central locations, and later two separate markets had emerged altogether.
Currencies have played a vital role in the leasing market as well. In the early years, we had been experienced that low quality properties were being priced in the local currency PLN, whether higher standard or quality properties boosted up for international clients being chosen in DM or USD. After the succession into the EU countries, the Euro zone has turned into Poland’s standard currency system in leasing market.
Now, rents for centrally positioned, high quality office building spaces are ranged between EUR 19 to 24/m2 per month.
Current rent rates for main office space situated outskirts of the city center diverge from EUR 10.5 to 15/m2 per month.
As accepted in a harsh market, new rental agreements are being signed just well below asking prices. Our sources recommend usual rents are approximately 15-25% lesser than asking rent rates. Asking rents largely depend on place, quality of finish, dimension and duration of lease term.
Owing to increasing development activity and a large number of new projects listed for completion in 2017, it is anticipated that the leasing rates may reduce, particularly in the central places. As a result of heavy and powerful competition among property-owners, the distinction between asking and effective rent rates may augment.
Standard lease terms and conditions
The subsequent below steps for modern day office buildings are considered as common characteristics within an ordinary lease agreement:
since the inauguration of the EURO, most new rental process or dealings have been performed in EURO, but they are paid in local currency PLN as synchronized by Polish law until the year 2009 (see division on legal and tax sections ). Some earlier leases are performed in USD; Rents are naturally run by the European countries (Eurostat) for Euro rents and the U.S customer followed price index in USD; service charges for example electricity, water, heating, cleaning, air–conditioning maintenance, service, etc. are included to net rents and premeditated according to the region leased. These rates usually fluctuate from EUR 4.0 to 5.5 per m2 in a month; A fee for ordinary space is typically included to the net office space and accommodation. This charge calculation is mostly determined by the pro rate distribution of regular space used (reception, lift, lobby,). Such “add–on factors” normally differentiate from the percentage of 5% to 10% of the newly leased region; Along with rent and service charges, occupants are responsible for paying 23% Value Added Tax (VAT); Landowners typically need tenants to offer a leasing deposit or bank guarantee equivalent to 3 months rent; typically Leases start from 1 to 30 years span; Ordinary agreement is between 3 to 5 years span, with a tendency toward longer leases for bigger customers and new growth; Typical lease measurement comprises: Rent–free time of 3 to 6 months regarding on the lease conditions; Fit-out allowance ranges from between EUR 150 – 250 per m2.
1.2. Retail market
Poland in general
Over the last couple of years, Polish retail market has encounter substantial modifications in recent times, predominantly in bigger urban places. From just a fixed or limited figure/number of public and small private ventures at the start of the 1990s, the stock and supply has developed to cover a growing number of international retail outlets and better quality local stores.
It turned out to be easier for overseas shopping center businessmen, investors and founders have shifted across national boundaries to facilitate accessing new or less costly markets or to develop market niches. In this situation the possession of shopping centers, as well as the merge of retail customers, is flattering more and more international. On the other hand, occupiers spotlight transformed to new anchors and mass market outlets that constrain demand in middle and large-sized retail method, to smaller shopping hubs, retail trade parks or give convenience centres situated in the smaller urban areas.
The early progress of the retail trade market in Poland started in 1990s when supply raises to please the necessity for food. This delivered to the entrance of various international supermarkets including Hit, Globi, Billa, Rema 1000 etc. From the year of 1996, Poland has experienced a speedy growth of major hypermarket trends such as Hypernova, Tesco, Auchan, Carrefour, E.Leclerc Géant and Real. Concurrently, some supermarket outlets recoiled ( e.g. Billa), some of them were sold out (e.g. Hypernova, Géant, Hit, Real, Leader Price) and a few new popular brands came to light ( Aldi, Alma and Piotr i Paweł, Simply). Furthermore, a development of discount stores characterized by Plus Discount, Lidl, Biedronka and Netto has been overlooked. Information in relation to ebb of Tesco chain from Poland and other three Central European countries were unverified. (EY research, 2016)
In the year of 2015, Polish government started works on a new big-surface shops tax, that might assist small sized local shops vie with large business sectors, by demanding shops with a space bigger than 250 sqm. At present, after meeting with specialists from home trade networks, the government arranges new outline, in which the shop tax system is much progressive and mostly depends on the income level.
Presently, the total up to date retail supply is responsible for approximately 13 million m2. More than 70% of the entire modern day accommodation is escalated by shopping centres, while retail shops and outlet centers covers 27% and 3% simultaneously. Though the largest portio of the share in the retail market place is controlled by Warsaw superseded by other major cities such as Łódź,Tri Silesia, Tri-City, Poznań, Wrocław,–City, Wrocław, Poznań, Katowice, Kraków, Łódź and shareholders have been looking for benefits in smaller cities, as more and more ventures are being inaugurated and constructed in towns with lesser than 50,000 citizens.
Modern retail space finished in 2015 calculated an amount to around 500,000 m2, which is a 10% rise in comparison to previous year. Major new outlets with a space more than 20,000 m2 comprised with Sukcesja (Łódź), SuperSam (Katowice), Tarasy Zamkowe (Lublin), Zielone Arkady (Bydgoszcz), Galeria Galena (Jaworzno) and Galeria Neptun (Starogard Gdański). The retail marketplace in Poland is possibly to prolong to get benefit from stronger home and foreign investor attention. Right now, more than 560,000 m2 of modern day retail space is now going under construction, 94% of which included with shopping centers, with 10-15% projects being expansion.
Major projects incorporated with openings planning in years- are Wroclavia (Wrocław), Galeria Posnania (Poznań), , Galeria Glogovia (Głogów), Galeria Metropolia and Forum Gdańsk (Gdańsk) and Galeria Aviator (Mielec).
Developer’s program in small and middle sized cities has been experienced for the last few years. The real quantity of space that will be brought to the market in 2016 will authorise upon accessibility of economical and consumers demand for retail space and accommodation. Aside from the medium - size retail ventures and planned expansion and restructuring of the current retail stock, the market is proceeding towards the aperture of “strip malls” (convenience hubs) - small retail outlets with a space not more than 5,000 m2, often situated in the local cities and including competition for ordinary shopping centers.
As in preceding years, in 2015 drift constituting modernization and / or extension or reconstruction of present shopping malls has been experienced on the market. Approximately half of the shopping centres in Poland were built before 2004 which pushed the owners to bring in some changes: rejuvenate the interiors, renovate facades, comprise with new facilities, reorganize existing and persuade new tenants.
The largest work planning proposed for the next three years are the expansion of Galeria Bałtycka (16,000 m2), Janki shopping center (22,000 m2), CK61 (20,000 m2),) and Fort Wola (up to 55,000 m2 to be completed in 2019).
Now Supermarkets or hypermarkets are still favoured procedure for anchor rental tenancy, even though a growing number of ventures are seeking for entertainment facilities to minimize grocery retailing as the fundamental demand driver. Standard assessment purposes still comprise in gallery shops, a food court service points etc. Customers now hunt for faster and more convenient shopping, and with this alteration of expectations, retail offer should be fiddled with as well.
Focus on Warsaw
The total amount modern day retail supply in Warsaw cluster passes 2.1 million m2, but only about 1.6 million m2 of it might be measured “modern” retail space appropriate for international tenants. This associates with around 0.6 m2 of total retail accommodation space per person. Amongst all of the Polish big cities, Warsaw’s retail space marketplace keeps one of the least soaked, in spite of the uppermost purchasing authority. The left over retailers engage mainly retail units located on the ground floors of housing buildings or departmental stores constructed before the 1990s.
Firstly, shopping centers in Warsaw inaugurated in early 90s: Tesco (ex HIT Park), Handlowy Janki (ex IKEA Janki) and KEN Center (ex E. Leclerc). That decade transported also inauguration of Atrium Promenada, Klif, M1 Marki, Atrium Reduta and Atrium Targówek. Between the year between 2000 and 2007 four major openings occured: Arkadia (one of the largest shopping centers in Poland), Galeria Mokotów, Złote Tarasy and Blue City. Presently there are 15 main shopping hubs in Warsaw only, presenting more than 3,500 retail units.
In 2015 the expansion of Wola Park included 17,500 m2 and the expansion of Factory Ursus comprised 6,000 m2 to the supply of modern day retail accommodation in Warsaw. Eight months was occupied Ghelamco to complete Plac Vogla – small shopping hubs delivering 5,200 m2 of retail region, situated in Wilanów district. Ferio Wawer was started operation in November 2015, encompassing 12,500 m2 of retail area . MODO Domy Mody is a new thought that introduced on the Warsaw retail marketplace and was completed in Q4 2015. It is a one-storey small shop, with the total leasable volume of 16,000 m2, which is presenting 350 boutiques of producer, retailers and importers of clothing, shoes and other accessories.
In the recent days, Warsaw high street retail has restored and got importance. Their possible illustration that they can cultivate strong provided they are well known and have a good focus on the customers choice.
High streets are situated across the central part of the city. Only Two retail groups control the high streets value in the capital Warsaw: café, restaurant and bar workers and services providers. Another well characterized group is fashion and monetary service providers. Also existence of luxury vendors is perceptible in a few high streets in the capital. Nowy Świat Street is possessed with historical alliance of the city linking Plac Trzech Krzyży to the Old municipality and important and attractive tourist destination. There are several restaurants and cafes situated on the street or avenue. Plac Trzech Krzyży, on the contrary is subjugated by key and luxury brands, elegant restaurants and cafes, enlarged towards to Mokotowska St. Another supreme high street located in the capital is Marszałkowska. Chmielna Street is pedestrian pathway linking Nowy Świat and Marszałkowska which brim over with cafes, bars and restaurants. The aperture of the 2nd metro line included with the beauty of Nowy Świat and Świętokrzyska. major high street rents rate for units of ca. 100 m2 swing in the range of EUR 70-95 EUR/m2 per month. Units in innermost Warsaw diverge greatly in terms of standard and convenience. Overseas and domestic merchandisers have also built up a strong appearance on the ground floor of apartment or building locating Jerozolimskie Avenue and Marszałkowska Street. The segment of Jana Pawła II Avenue to the northern part of the Atrium Business Center has conventionally been well known as a shopping paradise and today still manifests a mix of reasonably priced stores. Small sections of high-priced shops are also situated in hotel precincts and on the ground floors of the main office buildings.
Warsaw high street retail division is earning benefit from low vacancy stage (1.6%), low infiltration and the lacking of retail space and accommodation in shopping centers. The development latent of the high streets has been observed by developers who are now looking for new locations for their schemes or disbursing existing locations.
New developments will insert new retail accommodation in the high street center of Warsaw comprising with renovation and modernization of substances such as CEDET (Al. Jerozolimskie), Ethos office building (Pl. Trzech Krzyży) and Hala Koszyki (Koszykowa Street) and the manufacture of office buildings with retail constituent (Sienna Towers, Centrum Marszałkowska and Astoria).
Retail rent rates differ far and wide and depend mostly on the category of a facility, location and eminence. Over the year of 2015, the rental level was steady and constant with no transformations or changes projected in the future. The charges for retail units in major locations may go beyond EUR 120/m2 per month.
Average rent rates for small sized units in modern day shopping centers in the capital Warsaw differ from EUR 40 to 50/m2 per month which mostly depend on place, unit, dimension and nature of merchandise. Major units of 100–150 m2 are let at EUR 60 to 95/m2 per month (comprising rent rates in Złote Tarasy and Arkadia, which symbolizes the most retail rental rates in Poland). Bigger units lease for about EUR 15 to 30/m2 per month. Typically anchor store operators which encompassing units of more than 1,000 m2 have to pay much less than others, with paying average rent rate from EUR 9 to 12/m2 per month and even lower, approximately EUR 5 to 8/m2 per month for hypermarkets. Service fees for small sized units fluctuate from EUR 5 to 9/m2 per month. Main tenants are charged with EUR 2 to 3.5 /m2 per month.
Standard lease terms and conditions
Standard lease conditions for all retail space units are parallel to the office market. Yet, the usual lease span for retail space unit in modern day shopping centers varies from 5 to 10 years span. Anchor occupiers typically favour 10-year lease conformity with extension opportunities, naturally for a supplementary 10-year stage.
With the escalating supply of retail space and accommodation facilities, occupiers have possessed with more challenging and demanding field and the developers looking for noticeable tenants commonly present not only lesser rental rates but also occupied with incentives like as :
•rent free period starting from 1 to 2 months for the small sized shops and up to 6 months for bigger units;
fit-out allowance start with EUR 50–200/m2 for large rental units and up to EUR 600/m2 for anchor occupiers or clients (i.e. with at least 10-year lease agreements).
In the year of 2015, Polish retail market turned into more tenant-led, in comparison to earlier years. On the grown-up retail markets, with high infiltration rate, anchor occupiers began to demand large fit-out donations, extensive rent free periods or moderately turnover-based rent rates.
1.3. Warehouse market
Poland – General
The modern day warehouse market in Poland started its improvement in the early age of 1990s, and presently contains over 9.9 million m2 of warehouse accommodation or space. Though primarily consolidated within the Warsaw municipal area, the contemporary market can now be separated into seven areas, each of which has a modern and well advanced warehouse space. These contain: Poznań, Warsaw, Central Poland, Upper and Lower Silesia ( Łódź, Piotrków Trybunalski), Tri-City, and Kraków. Logistics centers are situated outside city restrictions and presenting good opening to major existing and premeditated highways.
Although the predicament has been overlooked on the road and infrastructure construction, single activity that has been sustained. This prolongs to increase investor interest in different sections comprising Zielona Góra, Lublin, Szczecin, Toruń, Bydgoszcz and Rzeszów, but these locations are at this time mainly built-to-suit schemes. In the modern days, circumstance in the financial markets has reduced accessibility to funding while increasing the price of capital, portraying some savings no longer viable. This was obvious in the “tightening” by warehouse owners or developers, who were plummeting tentative projects in order to keep spotlight on managing existing stockpile.
At present under construction area is about ca. 900,000 m2 of modern day warehouse accommodation and space, of which 68% is already rented out. This projected that developers are gradually returning to partially provisional investments.
After a few unwavering years, 2015 presented a strong improvement to the market. New supply in 2015 specified to 980,000 m2 which is lower to some extent than the outcome of 2014 – 1.1 M m2. In spite of the stable quantity of new supply impending on the market, vacancy rates appreciably lessened – from c.a. 5.5% in 2014 to 4.6% in 2015. Rents are kept on fixed level.
Positive drift should prolong in the subsequent years and will most likely influence on regional marketplaces such as Rzeszów, Lublin, Bydgoszcz, Toruń, Opole and Szczecin. Area or region that is repeatedly achieving on beauty is Tri-City, where sturdily budding infrastructure donates to the growth of the warehouse market. Shareholders or investors can discover well-equipped land plots, which facilitate swift start of the construction practice. At this time, the Tri-City area is measured the sixth biggest market in Poland. In 2016 we envisage to observe on the local markets, more dealings of “trade and leaseback”, where the proprietor sells and then leases the property back.
Focus on the polish capital city
The Warsaw modern day warehouse stockpile is termed as properties within about 50 km of the city center place and is divided into two parts or zones:
zone I: Roughly 656,000 m2 in properties situated within a 15 km range (Okęcie, Służewiec, Targówek, Żerań), warehouse amenities in this zone incorporates mainly cosmetics, pharmaceuticals, electronics etc; zone II: about 2,274,000 m2 in belongings situated between 15 to 50 km from the city center (e.g. Piaseczno, Ożarów Mazowiecki, Błonie, Teresin, Nadarzyn, Pruszków).
Though the Warsaw metropolitan area carries on accounting for the biggest single share portion in the Polish marketplace (30% of entire space in Poland), this domination has been progressively grinding down as developers thrust for an existence along the upcoming motorways exterior to the most important cities.
The entire modern day warehouse accommodation space in the Warsaw municipal region (Zones I and II) is projected at almost 2.9 million m2 of modern day space.
In 2013, approximately 78,000 m2 of warehouse accommodation space had been completed, which was above 20% decline in comparison to 2012. Alternatively, the whole Polish marketplace, new supply rate in the polish capital in 2014 was considerably lower than in preceding year and estimated to 38,000 m2. Developers transported to the Warsaw warehouse market approximately 150,000 m2 that is roughly 4 times higher than in 2014.
At present about 200,000 m2 of warehouse accommodation space is being under construction in polish capital area, most projects placed in zone II. Future contribution or supply rate is hard to fix as developers incline to move to customer projected built-to-suit projects.
The mainstream of space rented in modern allocation centers is left to logistics warehouses or companies, which sub–let accommodation and supply their tenants with full provision, together with loading, packaging, customs authorization and transport.
In 2013 the application for rental warehouse space in Warsaw area purported to about 344,000 m2 and declined c.a. 23% as contrasted to 2012. In the year of 2014, demand augmented more than 150% climbing up to the quantity of 863,000 m2 – one of the highest amounts in Poland.
In comparison to 2014, the application in 2015 fell by 22% to about 670,000 m2 – 70% of the area was rented in Zone II.
The most wanted after unit dimensions are 1,000 – 3,000 m2, typically leased in office/warehouse amenities of on the top of 10,000 m2, placed in logistics parks. Areas bigger than 10,000 m2 are generally leased by logistics tenants.
Job rates in Warsaw have declined to the stage of 6.7% contrasting to the 7% in 2014.
Warsaw big box rents remain on the constant level and for 2015 are presently estimated at the following projections:
zone I: EUR 3.8 to 5.2/ m2/month; zone II: EUR 2.0 to 3.0/m2/month.
Different incentives have also launched, with one month for every year of rental period being a universal benchmark. Other than that rent, occupants are responsible for reimbursement service charges for wealth or property administration, maintenance, wealth tax and safety. A flat amount had been paid in advance and managed yearly on the origin of authentic costs differs from EUR 0.7 to 1.2/m2 per month.
Attribution for Warsaw industrial marketplace is an immense presence of class B housings. First modern day warehouse and manufacturing services were constructed in Poland in the premature of 90s, therefore, over the years they matured and now are being gradually restored by newer design plans better modified to the ever changing and increasing tenants requirements.