Cookie Use Notification

This site uses cookies to provide you with a more responsive and personalised service.

By using this site you agree to our use of cookies as set out in our cookie notice. Please read our cookie notice for more information on the cookies we use and how to delete or block the use of cookies.

New Cushman & Wakefield Map Reveals CEE’s Industrial Landscape

Hlobil Listowski
Click to Enlarge

Cushman & Wakefield has published a new map and comprehensive overview of the most important logistics and industrial sites in Central Europe, Russia and Germany. In addition, this year’s edition has been expanded with figures for Milan, Italy.

Ferdinand Hlobil, Head of Cushman & Wakefield’s CE Industrial Team, said:A comparison of the current and previous maps gives us interesting insights into market trends. New parks have been built in almost all locations but the vacancy ratio has decreased significantly. Central Europe is beginning to experience a shortage of available space to lease – which may lead manufacturing companies to look at other locations. For example, Spain or Portugal might become our competitors.”

Between the end of 2013, when the last map was produced, and the start of 2016 the total area of industrial units across Central Europe (the Czech Republic, Hungary, Poland, Romania and Slovakia) grew by 25% from approximately 16 million to 20 million square metres. The greatest amount of existing stock is currently in Warsaw (almost 3 million sq m), Prague (2.3 million sq m) and Budapest (1.9 million sq m).

Over the same period, the average vacancy rate declined from 10.2 per cent at the end of 2013 to 5.7 per cent at the start of 2016.

Cushman & Wakefield forecasts that new developments are set to markedly decrease in Prague over next few years due to a shortage of available land. Conversely, significant potential for new development can be seen e.g. in the Warsaw region (approx. 0.3 million sq m), Poznan and Central Poland (approx. 0.25 million sq m each).

Mr Hlobil said: “Our occupancy statistics indicate that the vacancy rate has dropped by more than 50% in many locations including Cracow, Bucharest, Poznan and Budapest. One could say that there is currently almost no vacant space available for immediate lease in Cracow and Poznan. Companies intending to expand into those areas will have to wait for new development.”

Tom Listowski, Partner and Head of Industrial and Logistics Agency Poland and CEE Corporate Relations, Cushman & Wakefield, said: “Poland with more than 10 million sq m of modern industrial and warehouse space is a leader in the CEE region. Good macroeconomic conditions, access to human capital and improving road infrastructure is encouraging foreign investors to open new or expand existing operations. We have seen high levels of activity amongst developers who are acquiring development sites in core but also new locations to handle current occupier demand levels and construct modern industrial or logistics facilities.”

The situation is different in Russia where the economic slowdown is reflected in the industrial property market. As a result of subdued consumer demand, companies are not extending their leases. As a consequence, the ratio of vacant space is growing even though recent development has been low.

However, Mr Hlobil added: “This situation is unique to the Russian market and Central Europe is experiencing a period of growth that we expect to continue for the foreseeable future.”

TOTAL STOCK (mio sqm)

change (%)

City

Country

2013

2015

2013/2015

Düsseldorf

Germany

1,3

2,6

109%

Wroclaw

Poland

0,9

1,4

57%

Frankfurt

Germany

3,3

4,6

40%

Plzeň

Czech Republic

0,6

0,9

40%

Poznan

Poland

1,1

1,4

36%

Krakow

Poland

0,16

0,21

31%

Berlin

Germany

2,9

3,7

29%

Prague

Czech Republic

1,8

2,3

28%

Hamburg

Germany

3,8

4,3

14%

Ostrava

Czech Republic

0,4

0,4

14%

München

Germany

1,7

1,9

11%

Warsaw

Poland

2,8

2,9

5%

Brno

Czech Republic

0,8

0,8

4%

Bratislava

Slovakia

0,8

0,9

4%

Budapest

Hungary

1,8

1,9

3%

Košice

Slovakia

0,0

0,0

0%

Bucharest

Romania

1,0

1,0

0%

Source: Cushman & Wakefield, 2016

Industrial Stock in CE

Vacancy Rate in CE