The supply of new and under-construction warehouse space continues to grow, yet the vacancy rate is steadily declining. Contrary to popular belief, this is driven not only by the growing strength of e-commerce or the sector…
Izabela TrancygierFebruary 10, 20224-minute read
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The supply of new and under-construction warehouse space continues to grow, yet the vacancy rate is steadily declining. Contrary to popular belief, this trend is driven not only by the growing e-commerce sector or the logistics industry. The structure of demand in the warehouse market is currently highly diverse.
“What we’re seeing now is, in a way, a departure from how City Flex products were defined just a few years ago. It turns out that facilities originally designed to support ‘last-mile’ delivery are now attracting interest from companies in many other industries, ” says Katarzyna Litwin, Leasing Director at 7R.
As he explains, a significant number of tenants are companies that, due to the nature of their business, cannot be located, for example, in office or retail buildings.
Urban warehouses offer a high degree of flexibility in terms of space utilization—for example, due to their floor area and ceiling height—making them an excellent alternative for companies in the exhibition or training industries. At the same time, these buildings are located in urban centers with good transportation links, ensuring access to a qualified workforce. This makes them a desirable option for advanced manufacturing, laboratories, and pharmaceutical warehouses as well.
says Katarzyna Litwin
Leasing Director at 7R
Warehouses for the pharmaceutical industry
One of the most demanding groups of tenants in urban warehouse facilities are pharmaceutical companies, whose operations are strictly regulated by the Main Pharmaceutical Inspectorate (GIF). – One of the most important aspects of working with this group of tenants is gaining a thorough understanding of the specifics of the tenant’s operations and adapting the space to the requirements of the Main Pharmaceutical Inspectorate. “We are constantly working on new solutions tailored specifically for this industry. One example is the change to a vertical panel layout on the facade. This eliminates the problem of dust accumulating at the panel joints,”explains Katarzyna Litwin.
As far as this industry is concerned, 7R’s portfolio currently includes logistics facilities dedicated to the pharmaceutical sector, as well as those used by pharmaceutical wholesalers and manufacturers. – In the operations of pharmaceutical companies, the key priority is maintaining appropriate cleanliness standards and ensuring top-tier temperature control. Only buildings with high insulation performance are capable of providing precise temperature measurement and regulation. There are, of course, many more aspects to consider in such a client’s operations. These include humidity control and the division into ‘clean’ and ‘dirty’ zones. Projects of this type require exceptional precision from us. Failure to meet such critical requirements could result in losses amounting to millions for our tenants, ” explains the expert.
Pilot training at the 7R warehouse
One of the most interesting examples of an unconventional use of urban warehouses is Poland’s first flight simulator, located at the 7R Citi Flex Warsaw I facility, which is used to train civilian pilots.
"This facility not only fully meets the tenant’s most technologically advanced requirements, but is also located right next to the airport. High-end electronics require precise temperature control and monitoring. With such high-value equipment installed in the building, there is no room for error," says Katarzyna Litwin.
The Growth of the Warehouse Real Estate Sector
7R has also observed a growing number of companies recognizing Poland as a potential location for their data centers. This is due to the fact that their understanding of data storage regulations is increasing. The prospects for this market are so promising that 7R has created a team dedicated solely to this sector. “ The biggest challenge in implementing this type of project is the very high demand for electricity, which is characteristic of data center operations. That is why a location capable of supplying sufficient electricity and ensuring a secure power supply is crucial here,” emphasizes Katarzyna Litwin, adding that Targówek Przemysłowy could be the target location for this sector.
According to the 7R expert, it is to be expected that high-quality warehouse projects of this type, located in urban areas, will attract not only tenants but also investors, and their growth potential is still in its early stages.
About the author
Author's Bio
Izabela Trancygier
Regional Manager, Central-South Region
Izabela Trancygier serves as Head of the Central-South Region at 7R and is responsible for the company’s business development in the Central-South region. She oversees the leasing and development divisions,…