7R breaks its own record for space under construction and strengthens its position in the Polish warehouse market
2020 was a landmark year for the warehousing industry, which, in the face of the global health crisis, proved to be one of the strongest sectors of the economy. Reports show that Poland is the second-largest market after Germany, which…
2020 was a landmark year for the warehouse sector, which proved to be one of the strongest branches of the economy in the face of the global pandemic. Reports show that Poland is the second-largest market after Germany in terms of new warehouse space delivered last year, and the third-largest in terms of leased space. Industrial and warehouse developer 7R, the only Polish company to remain among the top three strongest players in its sector in Poland, summarizes its results for last year.
7R has been active in the Polish warehouse market since 2008. In 2020, it leased a total of 406,895 square meters of space under 51 signed leases, 97% of which were new leases.
According to JLL, as of the end of December 2020, the volume of warehouse space under construction at 7R stood at 361,000 sq m, a 30% increase year-over-year, propelling the company from third to second place in Poland. In terms of space delivered last year, 7R maintained its third position in the JLL ranking, completing 18 buildings across 14 projects, with a total volume of 180,500 sq m.
Year after year, our company has seen steady growth in leased space, averaging 35%. We develop large-scale logistics parks as well as urban warehouses under the 7R City Flex Last Mile Logistics network. Two-thirds of the space leased in 2020 was covered by pre-lease agreements. Thanks to this model of cooperation, we were able to tailor the space to our clients’ individual needs as effectively as possible. Last year also confirmed to us that tenants increasingly appreciate the high, eco-friendly standards of warehouse investments. We have the experience and expertise to deliver such spaces. We also met our clients’ needs by increasing the clear height of buildings in our logistics parks to 11.7 meters, which expands storage capacity.
Tomasz Lubowiecki
CEO of 7R
An example of the need to expand warehouse storage space is the largest contract on the Polish market in the third quarter of 2020, which developer 7R signed as part of a BTS project for Żabka in Radzymin near Warsaw. The country’s most modern, fully automated facility for the food industry is being built there. One of the buildings in Żabka’s new distribution center is a 40-meter-high high-bay warehouse. The center was designed with a focus on reducing CO2 emissions into the atmosphere. The facility will be powered by green energy from photovoltaic panels. It will also utilize special paving stones and anti-smog towers.
An important step toward green building
In 2020, 7R demonstrated that energy self-sufficiency in buildings is now within reach. In Balice, near Kraków, the developer delivered an office and laboratory building for the BWI Group, a company specializing in the design and manufacture of automotive suspension parts. Thanks to the trigeneration system installed, the facility generates the energy needed for power, heating, cooling, and ventilation on its own.
7R aims to expand its best practices in the field of green construction. Last year, the company became the first warehouse developer to join the Proptech Foundation, setting itself the goal of developing and implementing technologies that will help reduce the carbon footprint of warehouse facilities in Poland.
There is strength in numbers
7R is committed to building a strong team and collaborating with the top professionals in the country’s commercial real estate market. The company’s workforce has grown by 54% year-over-year. In 2020, a number of specialists joined the team of professionals developing the company’s warehouse business. Among them is Michał Ulasiński, who took on the role of Head of Architecture and leads an internal team dedicated to the design and architecture of industrial and warehouse buildings.
Tomasz Żak has been leading the asset and property management department since last year. The company currently manages a property portfolio of over 700,000 square meters across Poland.
At the end of the year, the company announced that Chris Zeuner, following a successful year as a non-executive director at 7R, would become the company’s Chief Investment Officer and a member of the board. In his new role, effective January 1, 2021, he is responsible for 7R’s continued expansion, which includes plans for the Polish warehouse and industrial developer to enter new European markets.
The growth of the market—and, consequently, our business—requires a review of our strategy and the building of a strong team capable of meeting the new challenges we set for ourselves. It is crucial that the presence of warehouses in urban and suburban areas be environmentally friendly and respectful of local communities. We feel a sense of responsibility for the impact that our development activities have on the Polish landscape. This is one of the reasons behind the work of our team of architects, resulting in the new, visually light facade of 7R’s facilities.
Tomasz Lubowiecki
CEO of 7R
Plans for 2021
In 2021, 7R plans to deliver properties with a total area of approximately 600,000 square meters, while another 1 million square meters consists of projects currently at various stages of preparation for development.
If necessary, we are ready to respond flexibly to market demands and take on new projects. We have a land bank, building permits, and a highly experienced team, which allows us to build quickly and to the highest standards. We will strengthen our presence not only in the capital and central Poland, but also in Upper and Lower Silesia, Western Pomerania, and in the eastern part of the country. We are investing in new locations and in the expansion of those we already have in our portfolio.
Bartłomiej Krawiecki
Board Member, Head of Development at 7R
About the author
Author's Bio
Lilianna (Elżbieta) Laudy
Marketing & Digital Manager
Lilianna Laudy serves as Digital & Marketing Manager at 7R SA, where she is responsible for developing digital and marketing initiatives that support brand visibility and online communication…
