Tenants prefer tailored warehouses
Demand for modern warehouse space in 2019 remained at a record high – in the last 12 months lease contracts for approx. 2.6 million m2 were signed. SSW analysis shows that tenants are increasingly looking for spaces in the BTS (Build-To-Suit) model. According to our experts, this trend indicates a growing specialization and development in the warehouse and industrial real estate industry.
An increased interest in the BTS model (i.e. a warehouse facility designed and built for a dedicated recipient) is mainly due to the fact that it gives the tenant the opportunity to adapt the entire building to their own individual needs, by taking into account the specificity of a given activity. This also perfectly illustrates the changes that are taking place in the perception of the Polish environment of the commercial real estate market. Many foreign investors from various sectors of the economy such as automotive, FMCG, electronics and the clothing industry have decided to locate their production hubs in our country, typically logistics centers and research and development (R&D) centers.
Observing the expectations of market participants, we can clearly see that the times when tenants sought primarily universal, simple storage and warehousing units are over. Today’s “warehouses” are a completely different story – the facilities constructed must meet the needs of a high degree of specialization, automation, profiling of tenants’ business needs, flexibility as well as environmentally friendly solutions.
says Maciej Duch, partner at the real estate team at SSW Pragmatic Solutions.
In 2019, SSW lawyers advised on over 35 lease agreements for warehouse properties with a total area exceeding 320 thousand meters squared. Their advice included the comprehensive representation of the landlord in contract negotiation processes, support in the conclusion of the contracts, as well as ongoing service of already concluded leases.