Karol Osiecki, Associate Director Industrial & Development at AXI IMMO with the structure of the warehouse market in Szczecin. What companies from the e-commerce sector, apart from Amazon, are present in the West Pomeranian Voivodeship? Read on (or listen to the podcast in Polish) about demand, supply and prospects for the region.

1The proximity to the German border and access to key transportation corridors are some of the most important advantages of Szczecin as a logistics and warehouse location. We observed increased development activity in this market in the first half of 2020, which enabled new leasing transactions. Moreover, a new Asian investment fund entered the market this year. How do market looks after the H1 2020 and what are its perspective to further development checked AXI IMMO experts.

2Following the acquisition of Amazon’s 160,000 sqm distribution centre in Kołbaskowo by Vestas Investment Management from Panattoni, there have been no further investment transaction in the Szczecin region until Q1 2020. This is when Savills Investment Management acquired the Panattoni Szczecin II park (69,000 sqm) on behalf of an Asian investment fund.

3“The capital of the Western Pomerania voivodeship is a perfect location for firms planning to develop their e-commerce business, including those that serve the German and Scandinavian markets. Road infrastructure around Szczecin, especially the S3 expressway, ensures good access to Wrocław and further to Czechia. Moreover, a relatively low number of warehouse schemes means that the region has good availability of labour. Indeed, large lettings for international firms such as Zalando or Amazon have demonstrated that this part of Poland has high potential. Production firms, logistics operators and smaller e-commerce firms operate in the region. Most major developers are present on the Szczecin market, including Panattoni, Mapletree, Exeter, Waimea and 7R, and many of them have secured land for future development.” – comments Karol Osiecki, Associate Director Industrial & Development at AXI IMMO.

4Despite a favourable location near the German border, proximity to the Tricity warehouse market and a well-developed road infrastructure, combined with a presence of sea ports in Szczecin and Świnoujście, we observed a slowdown in development activity in 2019. This changed in H1 2020, when five warehouse schemes with a combined area of 93,000 sqm were delivered. Total stock on the Szczecin market increased to 813,000 sqm (+14% y/y) as a result. In terms of the pipeline, developer Panattoni started a frist phase of a new logistics park in Goleniów (30,000 sqm) and they are also planning to start construction on a new scheme in Załom. New development projects have not had an impact on vacancy levels, which have been broadly stable at approx. 3% since Q2 2019. This is in contrast to a national average of 6.8%. Relatively limited new supply combined with low availability of space have resulted in stable rents in the Szczecin region, with base rates at EUR 3.5-3.7 per sqm and effective rates at EUR 2.5-2.7 per sqm.

5“The warehouse market in the Western Pomerania region focusses on five strategic locations. Szczecin is the most important and the largest of those and includes warehouse locations of Dąbie and Załom, which are within the city’s administrative borders. Logistics firms, including companies serving Sweden, dominate activity on this market. Goleniów is located north-east of the city on the S3 expressway. This submarket attracts both logistics and production companies. This is also were Prologis and Panattoni decided to build their new logistics centres. Stargard meanwhile, east of Szczecin on the S10 expressway, is dominated by production companies that are drawn to this location thanks to good access to workers and industrial traditions. Moreover, Kołbaskowo and Gryfino have stolen the headlines in recent years thanks to the decisions by Amazon and Zalando to open large distribution centres in these towns.” – adds Karol Osiecki from AXI IMMO.

6Four leasing transactions were signed on the Szczecin warehouse market in H1 2020, and their combined GLA was 37,000 sqm. The largest one was a 22,100 sqm lease by the Swedish tool producer Hultafors in a built-to-suit building within 7R Goleniów, followed by a 7,450 sqm lease by a logistics company at Waimea Logistic Park Stargard.