Poland

Market Bulletin

Summary

Since the start of the year total take up of modern warehouse space in Poland reached 1,105,000 sq m, which is comparable to the take up recorded for all of 2007. An analysis of occupiers shows that, to a greater extent, the demand for warehouse space is generated by logistic and distribution companies, a result of rising domestic consumption.

The total stock of modern warehouse space, as at the end of Q3 2008, amounted to over 4.4 million sq m. Worth mentioning is the fact that the amount of warehouse space currently under construction has reached a record level, however we can expect that the number of projects built speculatively may drop in the nearest future.

During the third quarter of 2008, information about a global financial crisis sent shockwaves across the globe which, appears to be heavily impacting European economies and banking sectors.

With forecasts suggesting a possible slowdown in economic growth, many experts believe that the warehouse and logistic market will be directly impacted. This being said, the results from the third quarter do not show any major signs, as yet, that the positive trends and growth, witnessed in the previous quarters, have significantly slowed. We are still observing strong demand for modern warehouse space, comparable even to the previous quarters, with over 350,000 sq m being leased in Q3 alone.