Logistics in Poznań – high demand has returned to the market

Piotr Roszkowski, Senior Consultant Industrial & Logistic at AXI IMMO, talks about the structure of the warehouse market in Poznań and submarkets in the Greater Poland Voivodeship. Read on (or listen to the podcast in Polish) about demand, supply, and prospects for the region.

Take-up in the Poznań warehouse market reached almost 260,000 sqm in H1 2020 (excluding short-term lets). This was the fourth best result of all major Polish logistic markets. Logistics companies as well as production firms have appreciated the potential of the Poznań region results from AXI IMMO market summary.

Two logistics assets with a total GLA (gross leasable area) of 112,000 sqm changed hands in H1 2020 as a result of large portfolio investment transactions. Panattoni Poznań IV in Komorniki (86,000 sqm) was acquired by an Asian fund represented by Savills Investment Management as part of a portfolio transaction comprising five Polish assets. P3 meanwhile bought  26,000 sqm project as a result of a takeover of the pan-European Maximus portfolio from Apollo Global Management. In addition, Investec acquired a 40% stake in the European portfolio managed by Ares Management, thus becoming a co-owner of Panattoni Poznań VI.

 “Poznań is one of the most important logistics and distribution markets serving Germany. The region is distinguished by excellent transport infrastructure, including access to the A2 motorway that links Warsaw with Berlin, the S5 and S11 expressways, a well-developed rail network and an international airport. These factors have contributed to solid occupier demand in this market in recent years. Major developers and smaller players have responded to interest from occupiers by securing land for future developments. The Poznań agglomeration has been considered one of the most attractive Polish regions for investment, in part thanks to the presence of six special economic sub-zones.” – comments Piotr Roszkowski, Senior Consultant Industrial & Logistic from AXI IMMO.

Logistics development activity in Poznań was stable in H1 2020, at 31,000 sqm (+7% vs H1 2019). New completions brought total stock in the market to 2.3m sqm (8.2% y/y), which meant that Poznań defended its 5^th spot in the country in terms of market size. During the last 5 years, total modern warehouse stock increased by 70%. While this marks significant growth, it is lower compared to most other major Polish markets. Indeed, demand for warehousing space in Poznań from large occupiers has been constrained due to concerns over low labour availability and the resulting difficulties with securing staff, especially during demand peaks. As a result, there is currently only 59,000 sqm of logistics space under construction (-57% y/y), of which 39% is built on a speculative basis. As at the end of June 2020, vacancy stood at 7.4%, which is above the national average of 6.8%, while headline rents were in the EUR3 – 3.6 per sqm range.

„The wider Poznań logistics real estate market encompasses six submarkets. One of the most developed locations is Gądki in the south-east part of the region, together with neighbouring towns of Żerniki, Jaryszki, Robakowo and Koninko. This submarket offers relatively attractive rental rates. Komorniki and Plewiska located along the south-west ring road of Poznań are also an important and a relatively built-up warehouse cluster that also boasts very good public transport connections with the city. Main developers such as Panattoni, P3, Segro, Logicor and MLP are present in both of those submarkets. Poznań-West, including Wysogotowo, Dąbrówka, Swadzim, Sady, Gołuski and Tarnowo Podgórne, is another defined warehousing location. It is characterised by relatively new warehouse stock and a large amount of land secured for future development. Swarzędz meanwhile is dominated by sub-suppliers to the Volkswagen factory and the wider automotive sector. Kalisz, Konin and Niepruszewo are the region’s smallest submarkets, with single occupier, built-to-suit facilities.” – adds Piotr Roszkowski from AXI IMMO.

Gross take-up in the Poznań warehouse market amounted to 257,000 sqm in H1 2020 (+29% vs H1 2019). Logistics firms have dominated occupier activity, accounting for almost 50% of demand since the start of 2018. The construction and automotive industries have also been active groups of occupiers, accounting for 19% and 10% of take-up in the same period, respectively. The largest lease of H1 2020 was signed by a German industrial equipment producer with Panattoni for a 40,000 sqm built-to-suit plant in Kalisz. Logistics operator Ekol took 23,500 sqm at Panattoni Park Poznań VII and two other logistics companies leased space in Logicor Poznań IV (16,000 sqm) and Panattoni Park Poznań IX (15,000 sqm). Tenants interest resulted leasing approx. 260,000 sqm of modern warehouse space in region.