7R breaks its record for space under construction and strengthens its position in the Polish warehouse market
2020 was a landmark year for the warehouse industry, which, in the face of the global pandemic, proved to be one of the strongest sectors of the Polish economy.…
2020 was a landmark year for the warehouse industry, which, in the face of the global pandemic, proved to be one of the strongest sectors of the Polish economy. Last year’s figures show that Poland was the second-largest European market (after Germany) for new warehouse space, as well as the third-largest on the continent for leased space. 7R, the only Polish industrial and warehouse developer to rank among the top three in the sector, summarizes its results for 2020.
7R has been active in the Polish warehouse market since 2008. In 2020, it leased a total of 406,895 square meters across 51 deals, with nearly 97% of that total consisting of new leases.
At the end of December 2020, the volume of warehouse space under construction at 7R totaled 361,000 sqm, an increase of 30% year-on-year, and, according to JLL, enabling the company to move up from third to second place in Poland’s warehouse sector. In terms of space delivered last year, 7R maintained third place in JLL’s ranking, delivering 18 buildings across 14 developments with a total volume of 180,500 sqm.
Year after year, our company has seen steady growth in leased space of approximately 35%. We are developing large-scale logistics parks, as well as urban warehouses that are part of 7R’s City Flex Last Mile Logistics network. Two-thirds of the space leased in 2020 was under pre-lease agreements. Thanks to this model of cooperation, we were able to adapt the space to the individual needs of our clients in the best possible way. Last year also confirmed that tenants increasingly appreciate the high, eco-friendly standards of warehouse investments. We have the experience and expertise to deliver such space. We have also met our clients’ expectations by increasing the clear height of buildings in logistics parks to 11.7 m, which of course increases storage capacity.
Tomasz Lubowiecki
Chairman of the Board at 7R
An example of the importance of clear height in the warehouse sector is the largest contract on the Polish market in Q3 2020, which 7R signed as part of the BTS project for Żabka, Poland’s largest convenience store chain, in Radzymin near Warsaw. One of the buildings at the new Żabka distribution center is a high-bay warehouse with a height of 40 meters. The center has also been designed to reduce its carbon footprint. The facility will be powered by green energy from solar panels and will also feature smog-absorbing materials and anti-smog towers.
An important step toward eco-friendly construction
In 2020, 7R demonstrated that the vision of energy-self-sufficient buildings is now a reality. Last year, in Balice near Kraków, 7R completed an office and laboratory building for BWI Group, a company specializing in the design and manufacture of automotive suspension components. Thanks to a trigeneration system, the building generates enough energy to meet its electricity, heating, cooling, and ventilation needs.
7R aims to develop best practices in the field of green building. Last year, the company became the first warehouse developer to join the Proptech Foundation, with the goal of developing and implementing technologies that will help reduce the carbon footprint of warehouse facilities across Poland.
Strength in the team
7R relies on a strong team and collaboration with the country’s leading commercial real estate experts. In 2020, the number of 7R employees increased by 54% year-over-year. That year saw a number of professionals join the company’s warehouse division. Among them was Michał Ulasiński, who was appointed Head of Architecture and leads an internal team dedicated to the design and architecture of industrial and warehouse buildings.
Tomasz Żak, who heads the asset and property management department, also joined the company last year. The company currently manages a property portfolio of more than 700,000 square meters across Poland.
At the end of 2020, the company announced that Chris Zeuner, following a successful year as a non-executive director at 7R, would become chief investment officer and a member of the company’s board of directors. In his new role, effective January 1, Chris is responsible for 7R’s continued expansion, which includes plans for the Polish company to enter new European markets.
The evolution of the market, and consequently our business, requires us to revise our strategy and build a strong team to meet the new challenges ahead. It is crucial that the presence of warehouses in urban and suburban areas harmonizes with both the surrounding environment and the lives of local communities. We feel a strong sense of responsibility for the impact that our development activities have on the environment. To demonstrate our commitment to this, our team of architects has now designed a new façade for 7R facilities that is both visually appealing and blends seamlessly with the surroundings of 7R locations.
Tomasz Lubowiecki
Chairman of the Board at 7R
Plans for 2021
In 2021, 7R plans to deliver facilities totaling approximately 600,000 square meters, with another one million square meters of projects currently in various stages of development.
If necessary, we are ready to respond flexibly to market demands and undertake new projects. We have a land bank, building permits, and a highly experienced team, so we can build quickly and to the highest standards. We plan to strengthen our presence in Warsaw and central Poland, as well as in Upper and Lower Silesia, Western Pomerania, and in the eastern part of the country. We are investing in new locations and expanding in existing ones. I believe that 2021 will be a very exciting year for 7R.
Bartłomiej Krawiecki
Member of the Board, 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…
