In its report analyzing the warehouse market at the end of the fourth quarter of 2021, JLL indicates that net demand in 2021 amounted to as much as 5.4 million sq m. The leaders were Wrocław and Poznań, with a net demand of over 860,000 sq m. sq m in each of these markets. In addition to the Big Five, significant net demand, above 300,000 sq m, could also be observed in the region of Kujawy, Tricity and Lubuskie.
Transactions from the logistics sector and retail chains (including e-commerce) had the greatest impact on the record results. E-commerce is currently the second most active segment when it comes to demand for warehouses in Europe and in 2021 it accounted for 23 percent. net demand. This trend is also noticeable in Poland, especially in the so-called the western wall, where tenants from this sector have signed contracts for approximately 700,000 sq m. sq m new warehouse space.
Poland's great advantage is still more attractive rental rates than in other European countries, the ease of implementation of development projects and the possibility of quick transport thanks to many newly opened communication routes.
The new routes allow for efficient distribution of stored goods beyond the western and southern borders of our country, as well as within its territory. This is one of the most important arguments for investors - emphasizes Paulina Dziubińska, senior director in the Warehouse Leasing Department, JLL.
Locations such as Poznań, Wrocław, but also Szczecin or Lubuskie are considered by tenants as optimal locations for locating logistics operations to serve the Western market. The growth in the area of e-commerce also translates into the intensification of logistics activities that are necessary in the process of handling deliveries.
In the above-mentioned four western regions, over 2.2 million sq m was leased last year. warehouse space, which accounted for as much as 42 percent. total net demand in the country. Such great interest in these destinations results from their convenient location in relation to other European markets.
With 2.9 million sq m. of new warehouse space put into use in 2021, the largest number is in the region of Poznań and Upper Silesia - 450,000 each. sq m Despite the fact that most of the domestic warehouse facilities are located in the Big Five markets, the Tri-City stands out among the others in terms of growth dynamics.
The vacancy rate at the end of 2021 was at a record low - slightly below 5 percent. In addition, the large fragmentation of the space available immediately, combined with the growing interest from tenants, is driving the demand for new warehouse facilities.
At the end of December, over 4.3 million sq m was under construction. of which 46.6% the area was not secured by lease agreements. The speculative space under construction and the existing vacancy amount to over 3 million sq m in total on the Polish market. warehouse space, which will be available in the next few months - comments Tomasz Mika, director of the Warehouse Lease Department in Poland, JLL.
Poland is the second country in the EU after Germany in terms of space under construction. Within a few months, developers will deliver over 4 million sq m in our country. warehouse space, corresponding to as much as 18 percent. current resources. Invariably, since 2014, the resources of logistics space in Poland have been growing by over 10 percent. per year, with the average over the last five years being around 15%. This means that Poland is the fastest growing warehouse market in Europe. At the end of 2021, warehouse space stock reached the level of 23.7 million sq m.
In 2021, a record number of portfolio transactions was recorded, thanks to which the value of investments in the warehouse market in Poland reached as much as EUR 2.8 billion.
The year was dominated by a record number of portfolio transactions, the largest of which was the sale of Polish properties from the European EQT Exeter portfolio, the total value of which reached EUR 3 billion. This transaction was one of the largest in Europe. In turn, the largest single transaction in Poland last year concerned the Amazon Świebodzin facility, offering about 200,000. sq m surface.
Experts from JLL estimate that in the case of the best multi-year warehouse facilities for the five-year average lease period, the yields will remain at the level of around 5 - 5.25 percent. In the case of Warsaw, these rates will range from 4.25 percent. up to 4.5 percent In addition, the warehouse sector is currently experiencing a product shortage and record investment volumes, which will continue to impact cap rates.
Over the last two years, the share of the e-commerce sector in the demand for warehouses has increased in Europe from 12 to 23 percent. In Poland, players from this sector leased 1.3 million sq m in 2021. warehouses.
In an effort to keep up with the demand, developers completed 2.9 million sq m. warehouses, most of which in Poznań and Upper Silesia. A record 4.3 million sq m is under construction.
Developers are increasing the share of speculative space - at the end of 2021, it was 47%, in response to the forecasted high demand from tenants.