Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WARSAW-The Polish warehouse market remained slow in third quarter 2009, with new space delivered plunging to 57,000 square meters from nearly 400,000 square meters in 3Q08, realtor Cushman & Wakefield reports. At end-September, only 150,000 square meters was under construction compared with 1.25 million square meters a year earlier. The current trend is not expected to reverse until after mid-2010.

Tenant sentiment improved slightly during the period, with leases signed for nearly 200,000 square meters–the highest figure this year, but still down 64% from a year earlier, Cushman & Wakefield said. The most successful markets were the Warsaw region, central Poland and Upper Silesia. The vacancy rate stabilised at 16.3%, up 5.8 percentage points from a year earlier and totaling nearly one million square meters. The highest vacancy was in Szczecin (100%) and Upper Silesia (21.1%) and the lowest on the Warsaw market (15.7%), in Poznañ (9.3%) and Tricity (1.4%). Given the large volume of vacant space, tenants are continuing to negotiate favorable lease terms.

Despite improved economic fundamentals, expectations for 4Q09 are not too optimistic. Developers are launching only schemes with preleases. Some 20% of space under construction at the end-September or 30,000 square meters of new warehouse space is seen delivered, about half the previous quarter. Tenants’ activity remains at a similar level to that seen in the third quarter, but a slight increase in lease volume is expected. Vacancy and rental rates are seen stable.

Allan Saundersonis a managing editor of Property Finance Europe and a contributor to GlobeSt.com.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2022 ALM Global, LLC. All Rights Reserved.