NEWPORT GOLF CUP 2022!
Today was our first golf tournament 🏌
Together with Panattoni, who was a partner of our tournament, we had the pleasure to host our guests at Rosa Private Golf Club. The weather and moods were good!
Congratulations to all the winners and thank you for a great opportunity to meet.
High demand for warehouses, despite weakening of e-commerce
We recommend a very interesting interview with Robert Dobrzycki, CEO of Panattoni Europe, UK and India, on the situation on the warehouse market in Poland as well as on global implications.
✅ The demand for warehouses is still very strong. Despite the weakening of e-commerce demand, both lofistics and production are very strong.
✅ Nearshoring and shortening supply chains are a strong and and noticeable trend.
✅ The cost in Poland despite of being higehr than before, is still low compared to Western Europe. In addition, due to the location, we are in an ideal position to serve both the East and the West of Europe.
Source: Property News
Demand for warehouses is still growing
According to Cushman & Wakefield, further "high demand for warehouse space is generated by the logistics, distribution and retail industries. (...) The further development of the e-commerce and courier industries is also visible."
✅ 3.8 million sq m - demand for warehouse space in Poland (+ 12% y/y).
✅ 3.3% - the vacancy rate in Poland is at a record low level, which translates into 867 thousand sqm of available space for lease, which is 38% less than the year before.
✅ 20 million sq m - this is a bank of investment land that can be built in the next few years.
Source: Forsal
Growing demand for ecological warehouses
The main factors influencing the choice of space are invariably the location and costs of renting the warehouse. However, over time, we observe a change in trends, potential tenants declare the importance of environmental issues in their warehouses, and expect developers to provide technological and ecological facilitations as well as certificates for buildings. Companies that have ESG rules written in their strategy, according to reports, are able to pay extra from 1 to 10 percent of the rental cost.
According to CBRE: "4.5 million sq m of warehouse space is currently under construction in Poland, but it is still not enough to meet the overall demand for this type of space. The boom in the market makes tenants take what is available". Therefore, despite the constant construction of newer warehouses and spaces, potential tenants often have no choice but to choose not always certified spaces, as it is still a factor less important than location and price.
Source: Strefa Biznesu
Daniel Raemy has joined Newport Logistics Fund
We are pleased to announce that today Daniel Raemy has joined the Newport Logistics Fund as a member of the Supervisory Board and the Fund's Investment Committee.
Daniel has worked for the past 13 years for J. Safra Sarasin, a leading private bank in Switzerland. As CEO of J. Safra Sarasin Polska, he built a strong position of the bank on the Polish market and developed a network of contacts among Polish entrepreneurs and business leaders.
Previously, Daniel worked for the Swiss bank UBS AG, where over 17 years he held various positions in private banking in Switzerland and then in Poland. Daniel studied at KV Zurich Business School in Switzerland and holds a Certified International Wealth Manager diploma from CIWM, AZEK, Switzerland.
Industrial and logistics real estate market in CEE region - summary of the 1st half of 2022.
Very interesting report by CBRE that focuses on the economic and real estate markets in Central Eastern Europe after 1H2022. Below please find our summary on the Industrial & Logistics sector.
✅ 50 million sq m - the total stock of modern industrial and logistics space across the whole CEE region.
✅ 52% of the stock is located in Poland, 20% in Czechia, 12% in Romania, 9% in Hungary and 7% in Slovakia.
✅ 6 million sq m – space being under construction in CEE region (most is already pre-leased).
✅ 3.2% - is the average vacancy rate. The rate varies depening on the location from 0.5% in the Prague area, 2-3% in Poland, Slovakia and Romania, up to 6.4% in the Budapest area.
✅ EUR 5 / m / month - average headline prime rents in logistic parks.
Source: CBRE
Warehouse market - summary of the 1st half of 2022
What does the warehouse market look like after the 1st half of 2022? Below is a summary.
✅ 26.15 million sq m - total warehouse resources (+19% y/y). 2.42 million sq m was a new supply (+107% y/y) and 4.35 million sq m (+30% y/y) is under construction.
✅ The base rents ⤴️ and are in the case of big box warehouses € 3.40-4.80 sqm / month and in the case of SBU € 5-5.75 / sqm / month.
✅ 3.3% vacancy rate (-1.7% y/y). 867,000 sqm is available immediately (-32% y/y).
The long-term outlook for the market remains favourable because "in light of disrupted supply chains and high inflation, companies from various industries will strive to improve the efficiency of logistics processes, including their relocation and shortening of supply chains".
Source: Cushman & Wakefield Industrial.pl
Demand and supply on the warehouse market - forecast
In the coming years, the demand for warehouses will continue and the supply will slow down. CBRE informs about the current situation on the warehouse market.
✅ 26.1 million sqm - this is how many warehouses we have after the 1st half of 2022 (+20% y/y). In 2022, 2.2 million sq m have already been built and 4.4 million sq m are under construction. Thus, we will start 2023 with over 30 million sqm of warehouses.
✅ 3.2% is the vacancy rate and is the lowest in history.
✅ The demand for warehouses will be generated mainly by production 🏭 and automotive 🚘. E-commerce will also be a driver of demand, although not as strongly as in previous years.
Source: bankier.pl
Warehouse market in Poland - summary of the first half of 2022
CBRE summed up the first half of 2022 on the warehouse market in Poland.
✅ 26.1 million sqm - warehouse space in Poland (increase by 20% year on year)
✅ 4.4 million sqm - under construction (49% speculative)
✅ 3.2% - vacancy rate (record low)
✅ Base rent growth is growing (€4.6)
Source: CBRE
Stabilization of global supply chains
Tight global supply chains show signs of improvement. According to Financial Times the latest data show some signs of stabilization.
✅ According to Freightos, the average cost of transporting a standard container (40 feet) fell by 45% compared to last autumn.
✅ Since the beginning of the year the number of ships waiting to be unloaded in the port of Los Angeles has decreased by 75%, despite the fact that June was the most active month in over a century.
✅ According to Flexport air cargo deliveries time is constantly improving.
✅ The Global Supply Chain Pressure Index, run by the Federal Reserve Bank in New York and showing tensions in supply chains, fell by 57%.
Source: Financial Times
