Warehouse market remains resilient to Covid-19 in H1

The Polish warehouse market maintained its robust momentum in the first half of 2020, with a record 2.38 million sqm leased, according to Axi Immo. Gross take-up in the second quarter, during strict Covid-19 lockdown measures, was as much as 50 percent higher compared to the same period in 2019, totaling 1.36 million sqm. The results were driven by high demand on the back of booming e-commerce trade and numerous BTS transactions which commenced earlier in the year. The largest transactions carried out in the second quarter included the sale of Mszczonow Park (158,000 sqm) by P3 to Elite Partners Capital and the purchase of Logistic City Piotrkow (135,000 sqm) by Polish Logistics LLP, an investment platform established by REINO Capital, IO AM and Grosvenor Group. Yields on big-box assets currently stand at 6.25 percent, while prime logistics assets in Warsaw fetch 5.5 percent. Yields remained unchanged in the first six months of the year due to the stable nature of the sector and robust occupier fundamentals combined with high investor demand, according to Axi Immo.