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Take the opportunity today from the price bargains on the warehouse market.
In January 2009 the real estates, that can be bought or rented at bargain prices, finally appeared. Not everybody realizes though, that restraining the investments by the developers and setback of the loans by the banking system, both in a short term will lead to AN INCREASE OF THE PRICES AND RENTAL MONTHLY FEES in new and modern buildings and facilities.
The sudden and brief increase of the prices will be caused by the fact, that it takes several months to finish the accomplishment of the current setback by the developers of investments in logistic facilities. After the liberalization of the loan politics by the financial institutions, there will come a time of inactivity. The demand for real estate will increase and the stagnation will quickly raise the prices sky-high. It will last until the moment their number increases by the finished investments- says Tomasz Branecki the chairman of Jartom Agency.
Will the companies be able to take advantage of the situation in the break-through period on the market?
Contradictory opinions of the experts and the media confusion often stands in the way of making profitable decisions. For those who do not want to act under emotional pressure, now is the time to conclude advantageous transactions.
The media frenzy around the prices and the rents makes most of the players on the market very disoriented, that includes owners of the buildings, investors, lessees and potential lessees. However the mood swing will not last forever.
A piece of advice from the best investors in the world.
Donald Trump, who is currently on the list of the richest people in the world by Forbes Magazine and whose fortune is assessed around 3 billion dollars said: "I have made a lot of money when others were talking about downturns on the real estate market. We should let nervous and featureless businessman work on our behalf.
The threat of existence for some is mostly a chance for rapid development for others. The owners of real estate are willing to negotiate. This break-through, brief situation makes you ask a question : How to find and take advantage of an opportunity?
Help in making profitable investment decisions.
How to find profitable investments, which value will increase significantly in a short period of time? There are some expert tools for investors, that enable the comparison of attractive offers in a short period of time. The experts on real estate have access to them. Tomasz Branecki from Jartom Agency adds - the specialized agencies do observe the market up-to-date, that is why they can propose to every investor the best offers concerning warehouses and halls. Each one of the offers has been analyzed and the broker from a reputable agency is able to help in choosing attractive real estates, which would be the most beneficial if purchased or rented.
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In the Mazowieckie province the rents are the lowest in the country.
Almost 50% of every modern warehouses are located in the area of Warsaw. Stiff price competition of the developers like Prologis, Panattoni and many smaller ones, led to the fact that in January 2009 the Mazowieckie province became, in terms of prices, one of the most attractive locations - says Tomasz Branecki chairman of Jartom Real Estate.
Once again it pays off to move the central warehouses in the precincts of Warsaw. Half a year ago the locations in south - western Poland earned the biggest importance. At that time the developers outdid one another in building modern facilities nearby every major city. Now, when the crisis stroke the most less attractive locations, the investors are discovering Warsaw once again.
According to data collected by Jartom Agency, only in the nearest precincts of Warsaw the free warehouse area is over 200,000 square meters of warehouses and halls to rent. Those areas waiting to be rented are located in Prologis and Panattoni Parks, Maxima Industrial Park, Pruszkow Industrial Project and others.
The analysis carried out by Jartom Agency indicate that currently the most attractive in terms of price and location are warehouses in the precincts of Pruszkow, Ozarow, Blonie and Janek. They are located near the outlet routes from Warsaw in the direction of Poznan, Krakow, Katowice and Wroclaw, thanks to that they are attractive logistically.
On the other hand, no changes occur in high prices of always expensive warehouse areas, situated in the districts within the urban areas defined by the administrative boarders.
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Jartom. Warehouse Market Report.
1.Information about the author of the report
The author of the report is Agency Jartom, a leading agency company operating on the modern commercial estate market, warehouse and industrial. Since 1992 Jartom specializes in brokerage and consultancy on the warehouse and industrial facilities in Poland.
2.What's new on the 2008 warehouse market?
An important event in the beginning 2008 was the establishing on the Polish market of the developer Pinnacle Central & Eastern Europe specializing in storage spaces in the region of Central and Eastern Europe. Pinnacle started construction of a logistic center of 200 thousand sqm. in the vicinity of Poznan.
An unprecedented phenomenon on the market is the emergence of logistic centers in large metropolitan areas, other than Warsaw, Lodz, Silesia, Great Poland, an example may be the ProLogis investment in Szczecin.
A new occurrence is a loss of about 1.5% of the surface in the modern sector of the storage space because of the ageing of facilities in the recent past recognized as modern. Another process is converting the use function of warehouse facilities into commercial or production ones. This process has already begun, but is partly stilled by the dynamic growth of new rapidly constructed surfaces. In the first months of 2008 warehouse spaces expanded at about 10%.
3.What factors had an impact on the warehouse market in the first months of 2008?
The storage hall market in the first half of 2008 was influenced through the decision to organize by Poland Euro 2012 contests that had taken effect in the last year, and as the consequence - planned acceleration to construct highways. The impact on the economy had been exerted through the change of the Polish government for a considered being more liberal one in the sphere of the economy. The end of 2007 and the beginning of 2008 is marked with a long-term country growth forecast and accessing the Schengen zone by Poland.
The warehouse market has been also influenced by negative factors, such as rising land prices, increased warehouse facilities construction costs due to a sharp increase of construction materials prices, a drainage of manpower abroad, reaching the upper limit of the increasing public debt, as well as global factors, particularly the recession in the United States, declines in the stock markets, the crisis on the U.S. real estate market. The impact of positive factors was stronger anyway, and the warehouse market after a period of rapid development got into the state of stable growth.
4. Features of the warehouse supply
The total size of the existing storage area in Poland has exceeded 4 million square meters, thereof over 400 thousand sqm. increment in 2008.
Empty spaces do not exceed 5%, and in Warsaw less than 3%.
The 2008 market is dominated by two mayor players - Panattoni and ProLogis, who in total hold almost 60% of the market.
The Poland accession to the European Union and the Scheme zone outcomes in the increase in the number of warehouses located in the south-west of the country. The place is the center of the macro region that consists of Poland, the Czech Republic, Slovakia, Germany and Austria. The Wroclaw area alone already possesses nearly 400 thousand sum. of warehouse halls. Each month reduces the percentage of storage space of the warehouses located in Warsaw in relation to the halls surface across the country.
5. Features of the demand
In Warsaw the average transaction volume amounted to 4 thousand sqm.; however a rising interest in storage facilities outside Warsaw conurbation in clearly noticeable. And so, the average size of the rented space outside urban areas reached nearly 8.5 thousand square meters. As much as 32% of lease contracts were concluded for 5 years, 30% for 3 years, and only 2% for 10 years. The rest of contracts were concluded for shorter or indefinite periods.
As usual the major tenants are retail chains and logistic companies.
6. High rents as a result of a supply/demand game
In big cities, especially in Warsaw, rent rates reached the long time highest level 5.5 - 6.5 Euro / sqm. In other regions beyond main agglomerations the rates remain constant at around 3 Euro / sqm. It must be punctuated, however, that the Euro exchange rate against Polish zloty is very low, so the increase of rents fixed in zlotys is consequently not so high, and in regions outside built-up areas one can talk about reducing the rates determined in zlotys per a square meter surface.
7. What is the relation of the country average data to an urban agglomeration, taking Warsaw as an example?
Warsaw is characterized by the highest rentals getting to 6.5 Euro / sqm., small volume of free spaces and the specific structure of branches on the demand side. The main tenants here are not logistic companies and commercial networks, but rather courier services, food wholesalers, distributors of household appliances, RTV and electronics.
8.Examples of transactions
Agency Jartom is expecting to repeat its success of 2007 when it was able to actively participate in the transactions concerning considerable spaces of warehouse halls at around 200 thousand sqm. for a number of well-known brands like Agata Meble, M&M, GM Records, Jaguar, Media Markt, Merlin.pl, the International Fair of Poland, Navo, UNICEF, or Schrack. New transactions carried out by the Agency Jartom in 2008 related to, Inter Allia, Meyer&Meyer, MM Packaging Poligram, Tarkett, the Polish Football Association, leading developers involved, including ProLogis, Apollo Rida, AIG/Lincoln Polska and Menard Doswell & Co.
9. Summary
The investment activities are clearly intensifying in this country. The number of places where companies can build new spaces grows. One can be sure that in the course of the development of the road structure, improvement of their condition, increasing rapid traffic routes mileage, more attention will drawn to the sites located outside large agglomerations. The distribution of industrial plants is strongly acted upon by Special Economic Zones that recently have expanded considerably and gained approval for new locations. Developers are offering an ever higher standard of storage space and accompanying office space. The warehouses are equipped with handling docks, anti-dusty floorings, economic heating, modern fire security, extensive maneuver areas. More and more important become hall extra equipments and facilities, like transporter cranes or railway sidings.
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