Trends in the warehouse industry

The warehouse market is experiencing a period of rapid growth. As new technologies are implemented to streamline warehouse and environmental processes, the number of tenants requiring specialized space for their operations is growing. New locations are also emerging. 

Today, the nature and location of new developments are shaped primarily by the rapid growth of e-commerce, but that is not the only factor. The diverse tenant mix and the challenges posed by the current economic situation mean that the market is now following entirely new paths of development.

More and more companies considering building a warehouse for their own use are recognizing the flexibility offered by leasing warehouse space. “Currently, more and more companies are interested in leasing, which, on the one hand, does not require such a significant capital investment, and on the other—to a certain extent—allows them to adapt their operations to changing market conditions. The advantage of our warehouses is their versatility, which tenants often appreciate,” emphasizes Kamila Pruk-Piotrowska.

Business is all about people 

The largest companies are strengthening their position in the Polish market. This applies mainly to the e-commerce sector, which requires access to a large workforce to establish its operations. “Until recently, the key factor in locating a logistics center was its location—as close as possible to major road junctions or transportation routes. Today, access to a sufficient number of workers or specialized staff is an equally important factor. This is why we are seeing the development of new warehouse locations, ” says a 7R expert.

The final stretch is getting closer 

Online sales and consumers’ increasingly high expectations regarding service turnaround times and delivery schedules are drawing tenants closer to cities. There is a growing number of projects that, wherever possible, are converting older industrial or retail spaces into modern urban warehouse facilities.  – 7R’s portfolio includes several properties that will undergo a sort of transformation, including a former chemical plant that will soon be replaced by modern and functional City Flex-type facilities. More and more projects of this type are being developed, and I expect this trend to continue. What’s more, this may apply not only to older industrial buildings but also to shopping centers. In this way, we will have a positive impact on both the environment—for example, through land reclamation—and the image of cities, transforming old, dilapidated structures into impressive buildings, ” adds Kamila Pruk-Piotrowska.

The need to shorten delivery times is also driving the rapid growth of the courier industry, which is increasingly turning to technologies designed to streamline the final stage of delivery and reduce delivery times. Some companies are already calculating delivery times not in hours, but in minutes.

Data centers are booming 

One of the leading trends in the warehouse real estate sector is also the rapid growth data centers.

“ We expect the data center sector’s share of 7R’s portfolio to grow. These are projects with very specific requirements, such as a high demand for electrical power. And 7R has extensive experience in delivering such projects,” emphasizes Kamila Pruk-Piotrowska.