The warehouse and industrial property market uses specialist terminology, and understanding it clearly supports the analysis of specific projects. We have therefore prepared a glossary of key terms with practical explanations. It does not replace expert assessment but provides the essential knowledge for discussing the commercial, legal and operational aspects of an investment.

A

A-class warehouse

A-class warehouse is a warehouse object characterised by a high-quality finish and specific technical specifications. According to the standards, an A-class facility should have a minimum clear height of 10 m, a floor load capacity of at least 5 t/sq m, sprinklers, fencing and protection, and a fire protection system.

Add-on Factor

The common area coefficient, i.e., add-on factor, is expressed as a percentage (e.g., 10%) or in an unnamed form (e.g., 1.10). The common area of the building is proportionally added to all tenants in the rent settlement, depending on the building’s standard.

B

Basic rent

The basic rent is also called nominal or basic rent. This is the initial rental rate offered by the building owner, given per square meter of the proposed area.

Brownfield investment

Brownfield investment is a type of foreign investment consisting of the purchase or lease of degraded buildings or industrial infrastructure facilities that are given new functions.

BTO (Built-To-Own)

BTO is a warehouse project built for the customer. The developer has an executive function, but his responsibility for the project is broader than that of the general contractor. The developer is responsible for the entire development process, from planning through administrative procedures to commissioning the object ready for use. BTO investments may arise on land proposed by the developer, on the client’s own land, or on land selected under rules that meet the area’s conditions, e.g., within a special economic zone.

BTS (Built-To-Suit)

BTS is a tailor-made warehouse or production facility designed and built by the developer for a dedicated recipient in accordance with the recipient’s individual needs. BTS investments may arise on land proposed by the developer, on the client’s own land, or on land selected under rules that meet the area’s conditions, e.g., within a special economic zone. In addition, BTS may also arise as part of existing or planned logistics and production parks on the developer’s land.

C

Cold room

A cold room is a building or a separate room for storing products that require low temperatures. Depending on the specific purpose of the cold store, the temperature inside it is between 0 and 4 ° C.

Column grid

The column grid is the distance between the axes of structural columns inside the warehouse. The standard column grid is: 12 x 24 m or 12 x 22.5 m.

Crane

A crane is a group of cranes and transport equipment equipped with a system for lifting and lowering heavy materials. The crane can be installed inside the warehouse or outside the hall. The crane moves on the track.

Cross-dock

A cross-dock warehouse has unloading docks on two opposite walls. Such a building is accessible from several sides and can offer a minimum module for rent at half the warehouse depth. Cross-dock warehouses are popular, especially among courier companies.

D

Developer

A developer is an investor, i.e., a natural or legal person, who allocates capital to construct real estate for sale or rent. They usually buy the property and oversee the investment process from design to completion, then sell or rent it.

Dock / unloading dock/loading dock

The unloading, loading, or docking dock is part of the warehouse, which consists of an industrial gate, gate seal, unloading platform, rubber bumpers, and wheel guides. The unloading dock is used to load and unload a truck-type semi-trailer, also commonly called a TIR.

E

Early Access

Early access refers to the tenant’s access to the building, or part of it, before the lease starts. Access to the warehouse does not mean the right to conduct operations on its premises.

E-commerce

Electronic commerce is the online sale of products and services. Companies reach a wider group of customers through online shops than traditional stores. Goods purchased in e-commerce can be received at a stationary store, delivered directly to the customer, or received in electronic form (e.g., a code to download an application). E-commerce is one of the fastest-growing industries in modern warehousing.

E-commerce is a service for selling products and services over the Internet. Through online stores, companies reach a wider range of customers. Goods purchased in e-commerce can be delivered to a physical store, delivered directly to the customer, or provided in electronic form (e.g., a code to download an application). E-commerce is one of the fastest-growing industries in modern warehousing. Logistics operators serving e-commerce companies, as well as distribution and logistics companies themselves, use e-commerce warehouses.

E-commerce often involves cross-border trade, and international logistics supports it. Therefore, locating the warehouse close to motorways, expressways, and international roads is important to support e-commerce.

An e-commerce warehouse should fulfil additional requirements beyond its good location.  Additional docks or cross-docks for quick picking and delivery increase warehouse space use, which can be used to speed order completion through conveyor belts and mezzanines with shelf racks. The storage area on the mezzanine must, for example, have a floor load capacity above the standard, as well as customised fire protection. In e-commerce warehouses, the packaging zones should be additionally illuminated. Increasingly, e-commerce halls are high-storage warehouses, up to 18 m high. This allows the use of multi-level mezzanines and automated goods handling using robots.

Effective rent

Effective rent is also called real rent. This is the base rent, adjusted for the scope of exemptions offered by the owner, and calculated over the contract period. Effective rent is important when seeking savings when choosing an efficient warehouse.

E-fulfillment

E-fulfilment is the process of order fulfilment and logistical customer service using electronic warehouse management tools for e-commerce. E-fulfilment includes communication with the customer, in part or fully electronic, most often via the Internet, but also, e.g., by phone; complete operation and execution of logistics orders supported by IT and electronic tools beyond manual activities. Logistics services include storage, packaging, occasional packaging and shipping, and return handling; they may also include insurance support.

F

Fee development

Fee development is the fee the client pays the developer for implementing the investment.

Floor loading capacity

Floor loading capacity is also known as floor strength. The floor’s bearing capacity is related to the concrete class and the reinforcement distributed in the warehouse floor. Among other things, the nature of the activity that can be carried out in the warehouse depends on the floor load capacity. The standard floor load capacity is 5 t/sq m.

Freezer room

A freezer room is a building or a separate storage room for storing products that require low temperatures. Depending on the specific purpose of the freezer, the temperature inside it is -1 to -25 ° C.

G

Gate at ‘0’ level

The zero-level gate provides access to the warehouse directly from ground level for vehicles such as forklifts or trucks. Standard door dimensions: 3.5 x 4.2 m. The warehouse floor and the manoeuvring area are at the same level as the ‘0’ door.

GLA

GLA is the sum of net areas used individually by tenants and joint areas used together by tenants.

Greenfield investmentGreenfield

Greenfield investment is a form of direct foreign investment, consisting of purchasing or leasing previously undeveloped land and financing a new building in the area.

H

High storage shelves / High storage racks

High storage shelves are racks used to stack various types of goods in a warehouse to maximise space savings and increase logistics efficiency and flexibility.

I

Investor supervision

Investor supervision is voluntary or obligatory building control during the construction process. Investor supervision may be determined by the investor or imposed from above by the decision-making authority regarding the building permit.

L

Land Bank

A land bank is a land resource designated for the developer’s investment.

Lease agreement

A lease agreement is a contract in which the landlord agrees to give the subject of the lease to the tenant for a specified or indefinite period, in exchange for rent paid by the tenant.

Long-term contract

A long-term contract is an agreement between the landlord and the tenant for a fixed term. A lease transaction over 5 years is considered to be a long-term contract.

M

Maneuvering area

The manoeuvring yard is the yard in front of the warehouse. The manoeuvring yard allows heavy goods vehicles to manoeuvre at docks and ramps. In modern warehouses near the docks, the height of the manoeuvring yard is reduced by approx. 120 cm relative to the warehouse hall floor, facilitating access for a truck tractor with a semi-trailer and unloading goods directly from the semi-trailer to the warehouse using a forklift.

Mezzanine

Mezzanines are located above the ceiling, separating the upper part of the warehouse from a smaller area than the floor below; the side of the room from which it was separated is not closed by building partitions. In warehouse facilities, the mezzanine is often intended for office space.

N

Nave

The nave is the warehouse area limited by a column grid.

O

Operating costs

Operating costs are the costs necessary to operate a given property. Operating costs include Property taxes and fees, renovation and maintenance costs, management costs, protection costs and insurance costs.

P

Pre-lease / pre-let agreement

A pre-lease / pre-let agreement is a lease agreement signed before the start of the investment.

R

Railway siding

A railway siding is a branch of the track designed for loading and unloading wagons when the railway vehicles are stationary. It includes railway traffic control devices. Locating the siding near the warehouse facility increases distribution efficiency in the intermodal model.

Ramp – loading/unloading ramp

The unloading ramp is a concrete or steel platform up to 120 cm high above the manoeuvring yard level, attached to the building facade. The ramp enables trucks to be loaded and unloaded using forklifts.

Rent roll

The rent roll lists all tenants, along with lease areas, rent rates, and other data needed for proper building management.

S

SBU (Small Business Unit)

An SBU is a warehouse building designed to meet customer demand for a smaller warehouse module with a larger, representative office space. SBU projects are usually implemented in large cities.An SBU offers relatively small warehouse space, along with office space and sometimes exhibition space.

Short-term contract

A short-term contract is an agreement between the lessor and the tenant for a limited period. A short-term contract is a lease transaction of up to 3 years.

Skylights

Skylights are roof lighting used in production halls and warehouses. Roof skylights guarantee natural sunlight and no shade.

Smoke vents

Smoke vents are the main element of the gravitational smoke exhaust system for storage space. Smoke dampers are used to remove smoke, fire gases, and heat energy from the building and exhaust them outside.

Speculative Project

The speculative project is a property designed and built for general market demand, without a dedicated recipient. The speculative project is implemented without being secured by previous lease agreements.

T

Technical rooms

Technical rooms are separate rooms for storing equipment, e.g., a boiler room, transformer room, or forklift battery charging room.

ESFR sprinklers 

ESFR is a fire protection system designed to protect the building against the spread of water in the event of a fire. The fire protection system includes a water tank, pump station and building installation.

W

Warehouse park

A warehouse park is a set of warehouse facilities for rent.

Warehouse height

Warehouse height is the internal height of the hall, measured from the finished floor to the lowest element of the warehouse roof structure. The standard height is 10 m.

Warsaw warehouse market zones

The Warsaw warehouse market is divided into three zones:

  1. Warsaw zone I covers the area of ​​Warsaw, also known as the Warsaw city zone (Warsaw I). Companies looking for warehouse space in Warsaw most often choose facilities or halls close to the city’s exit roads; they mainly choose locations in Włochy and Okęcie (the left bank of the Vistula River), Żerań, and Targówek Przemysłowy (the right bank of the Vistula River). A logistics base is also located in Ursus and Ursynów, near the airport (on the left bank of the Vistula River).
  2. Warsaw zone II covers an area from 15 to 20/30 km from the centre of Warsaw (Warsaw II). Three submarkets stand out here: the southwest with the towns of Pruszków, Ożarów Mazowiecki, Janki, Nadarzyn and Kajetany. The second submarket is the south, with the city of Piaseczno and its vicinity. The third submarket is the northeast, including the cities of Marki and Radzymin. In the Warsaw market, warehouses located in Warsaw Zone II, 10-15 km and 20-25 km from the city centre, are very popular as city warehouses and regional hubs.
  3. Warsaw Zone III covers an area from 30 km to 50 and even 60 km from the centre of Warsaw (Warsaw III). On the warehouse map for Warsaw Zone III, Sochaczew, Mszczonów, Teresin, and Grodzisk Mazowiecki are located west of Warsaw. South of Warsaw are the warehouses in Garwolin, Grójec, and Góra Kalwaria. East of Warsaw are Mińsk Mazowiecki and Wyszków, and to the north is Nowy Dwór Mazowiecki. These cities are located near national road No. 50, part of the larger Warsaw bypass.

V

Vacancy rate

The vacancy rate is the percentage of unoccupied space in a given sector relative to the existing supply.