THE WAREHOUSE MARKET RESILIENT TO COVID-19 AXI IMMO presented the latest report „Polish Warehouse Market in H1 2020.”
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he Polish warehouse market maintained its robust momentum in the first half of 2020, with a record 2.38m sqm leased. Gross take-up in the second quarter of 2020 - during a time of strict Covid-19 lockdown measures - was as much as 50% higher compared to the same period in 2019, at 1.36m sqm. Such good outcomes were the result of high demand for space on the back of booming e-commerce trade and numerous BTS transactions which commenced earlier in the year. The warehouse real estate market has proved resilient to the global shock caused by the Covid-19 pandemic. The volume of logistics investment transactions closed in the first half of the year stood at almost EUR1.2 billion and accounted for almost 40% of total investment into Polish commercial real estate.
Among the largest transactions carried out in Q2 2020 were a sale of Mszczonów Park (158,000 sqm) by P3 to Elite Partners Capital and a purchase of the Logistic City Piotrków (135,000 sqm) by Polish Logistics LLP, an investment platform established by REINO Capital, IO AM and Grosvenor Group. Yields on big box assets currently stand at 6.25% while prime logistics assets in Warsaw-city fetch 5.5%. Yields remained unchanged in the first six months of the year due to the stable nature of the sector and robust occupier fundamentals combined with high investor demand. “Although the real estate investment market in Poland is facing challenges in the near future, recent transactions give cause for optimism. Indeed, H1 2020 saw record investment volumes of around 1.2bn EUR. In the coming
Mszczonów Park complex
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Autumn 2020
The Warsaw Voice
