Will the war in Ukraine stop the boom in the warehouse real estate market?
Poland is one of the most attractive market for warehouses and logistics. It encourages new investors and landlord to seek for a place for their business. Why is this happening and what impact will the war in Ukraine have on the warehouse real estate market? The answer to questions about the Polish and European warehouse and logistics markets can be found in the article by Szymon Ostrowski, managing director in Newport Logistics Fund, for Forbes.
Trends and growth directions on the warehouse market
At the end of April, Amazon informed that it had 'overextended' during the pandemic, which caused the 10% value reduction of the biggest developers both in USA and UK. What is the situation on the warehouse market and what are the expected trends:
✅ The demand will still exceed the supply, thanks to i.e. smaller e-commerce companies.
✅ Companies are trying to find the warehouse space closer to their outlets to avoid supply disruptions. swoich rynków zbytu, aby uchronić się przed zakłóceniami w dostawach.
✅ According to CBRE, vacancy rate in warehouses in UK is 1.5%, which is "critically low" level. Currently in Poland it is 3.6%.
✅ Rent increases will accelerate in the next year and are likely to force out some of the industrial companies, that can no longer afford rents paid by new companies.
Source: Financial Times
Newport Logistics Fund will finance the construction of a logistics park in Łódź
Newport Logistics Fund, a fund investing in warehouse real estate, will finance a logistics center with an estimated market value of EUR 37 million.
The first tenant of the logistics park is DPD - one of the largest courier companies in Europe.
The park with a planned area of over 32,000 sq m will be built in Central Poland (near Łódź) - one of the main logistics centers in Europe. It is also the first investment of the Fund in Poland.
Logistics park will consist of two buildings with a total area of over 32,000 sq m. It will be built on a 10-hectare plot in Lućmierz near Zgierz. The first of the facilities already has a tenant - the DPD company. The dedicated cross-dock building will house one of the largest and most modern sorters in the country. DPD is the largest parcel supplier in Europe. Each day, 7.5 million parcels pass through its sorting plants. Construction begins in early May.
The logistics park near Łódź, financed by the Newport Logistics Fund, will be built in one of the main logistics centers in Europe. 4 million people live here within an hour by car and as many as 180 million customers within 6 hours. Excellent transport connections are complemented by the nearby Intermodal Container Terminal, connecting China with Western Europe.
KKR to Build Warehouses as Demand for Space Outstrips Supply
According to Bloomberg News, one of the largest private equity funds, KKR & Co. Inc., began work on the construction of 8 new warehouses in the US.
"As the demand for warehouse space exceeds the supply (...) KKR is building new industrial properties."
Source: Bloomberg News
