Polish Industrial market excels
An analysis carried out by advisory firm JLL on Polish Industrial market performance in Q1 2016 gives a positive overview concerning the start of the year showing abundant demand and supply. Warehouse and industrial stock drove Poland to break the 10 million square metre threshold in Q1, reaching 10.37 million square metres by the end of the quarter. A total amount of 418,000 square metres of new space were delivered to market in the first three months of the year.
Total demand reached 680,000 square metres achieving the best first quarter result in the last decade. The highest gross take-up was recorded in the Warsaw Suburbs, while the biggest lease agreement was signed in Panattoni Park Bydgoszcz.
Developer activity is strong with 640,000 square metres of space under construction. Speculative projects have grown from a mere 5.5 percent in 2014 to 54 percent in Q1 2016. Tomasz Mika, Head of Industrial Poland, JLL, indicated that the increase in speculative projects "clearly confirms investor trust and confidence in the growth potential of the Polish industrial market". Vacancy rates have seen a small increase since Q4 2015, with the highest rate in the Warsaw suburbs and a 0 percent rate in some smaller markets.