How warehousing market is positioned in poland?
The Poland’s
warehouse market has witnessed a face change in the past few years. In
2004, there were ~ million sqm of modern industrial and warehouse space in the
country. However, by 2017, this space has increased to ~ million sqm. The
growing activities of tenants, developers, and investors are driving the demand
of warehouses in the country. Several warehousing companies are transferring
their business to a 3PL service provider that provides a wide array of
services. The demand of the warehousing comes from logistics firm,
distribution, trading and other industry sources.
The
warehousing market in Poland grew at a CAGR of ~%from 2012 to 2017, growing
from USD ~ billion in 2012 to USD ~ billion in 2017.
The expansion
in the e-commerce, retail and FMCG sector has been a major factor for the
increase in the retail market growth leading to a positive impact on the Poland
warehouse market by the rising demand from this sector.
There was a
dramatic change in the logistics sector post the country’s accession to the
European Union. In the past few years global logistics companies have started
building warehouses in different regions of the country (like Upper Silesia,
Poznań and Szczecin) with the intent of catering to the CEE and the Western
European region.
The country’s
geographical location and low labor wages in comparison to western counterparts
has proven to be advantageous for the overall logistics and warehousing sector
to prosper in the country.
The
e-commerce industry in the country has substantially increased in the past few
years. Newer e-commerce companies are entering and expanding into the Polish
market. This has further increased the demand for warehousing.
The growth in
the market is also driven by increased demand for the outsourcing of warehouse
services and the warehouse companies turning into a 3PL companies.
Poland Warehousing Market Segmentation
By Geographical Distribution
Warsaw has
the highest share of ~% of the total warehousing area in Poland in 2017 owing
to the industrial parks situated in the inner-city area and the suburbs of the
Warsaw region. The completion of road project in south-western suburb of Warsaw
has increased the attractiveness of those areas significantly.
Silesia
accounted for the second highest share of ~% of the total area in the
warehousing market in the country after Warsaw. The city is a center for
economic activity. Silesia is considered to be the second largest industrial
market in the country. The major driver for the growing warehousing sector in
the city is the abundant and cheap land, availability of cheap labour, and
excellent road infrastructure.
Poznan
attributed to third highest share of ~% of the total area in the warehousing
market of the country in 2017 owing to the major demand of warehousing in the
industrial sector. Poznan is strategically located between Warsaw and Berlin,
which makes it potential logistics center in the region.
By Business Model
Industrial/Retail sector is the
largest contributor to the warehousing sector in terms of revenues in 2017 with
~% of share. The rise in the industrial sector over the years gave an
opportunity to the warehousing market to increase in numbers making a positive
impact on the warehousing industry. The rising retail sector with the increased
demand has elevated the requirement of warehouses in the country making a
positive impact on the warehousing market.
Container freight and inland
container deport warehousing has contributed second highest share accounting to
~% in Poland warehousing market in 2017. The significant market share is due to
Poland’s connections with European, Asian, and North American countries
The cold storage market
contributed least revenue share accounting to ~% in the warehousing market of
Poland in 2017 owing to the increase in the demand of perishable goods such as
injections, food and others. The cold chain market has witnessed a robust
growth in past few years on account of growth in pharmaceutical and FMCG
industry.
Cross
Comparison Of Various Regions In Poland On The Basis Of Headline Rent,
Effective Rent And Vacancy Rate
Headline
and Effective Rent: The headline
rents for a top class warehouse facility in Poland varies from EUR ~ to EUR
~/sqm/month and the effective rents vary from EUR ~ to EUR ~/sqm/month. On an
average a tenant can negotiate around ~% of the headline rent which is
dependent on many factors.
Vacancy
Rate: The overall vacancy rates in
Poland range between ~% in Szczecin to ~% in Western Poland. The vacancy rate
difference in Warsaw inner city (~%) and Warsaw suburbs (~%) is due to the
significant price difference between the two regions.
Outlook:
The growing Polish economy,
developing road infrastructure and improving trade balance will continue to
drive the Polish logistics and specifically the warehousing market. The tenant
demand in the future is expected to remain healthy, driven by the rising E-commerce
industry in the country.
Classification
Of Major Warehousing Hubs In Poland
Warsaw:
The development of warehousing
sector in Warsaw region is concentrated on the south western areas as the
effective rates in the inner city area of the agglomeration are the highest in
the country and have led to high vacancy rates. This has pushed the developers
towards the sub-urban region of Warsaw.
Poland
Warehousing Market Future Outlook
The warehousing market in Poland
is expected to grow with a CAGR of ~% during 2018 to 2022 and reach USD ~
billion by 2022. The expansion of ports and manufacturing companies will support
the growth in the warehousing market in coming future. The rising FMCG and
retail markets in the country will substantially augment the demand of warehousing
space. Beginning of 2018 has indicated further dynamic development of the
warehouse and production market in Poland. Growth is supported by growing
investor confidence in the domestic economy, development of road and
communication infrastructure, significant increase in the e-commerce market and
strong demand from investors for objects generating stable income.
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