Sharing their knowledge and experience regarding new trends and current challenges of the institutional lease market for warehouse, production and logistics space.
Brief conclusions:
📍in addition to continued, albeit changing demand (with strong demand for manufacturing space), landlords face further challenges due to changes in tenant behavior/risk profiling;
📍the difficult situation in the building materials and general contracting markets (especially in the first two quarters of this year) has caused considerable turbulence in current projects;
📍it is not uncommon to renegotiate concluded leases in order to increase the rental rate;
📍with regard to new leases, increased financing costs, reduced investor appetite, and widespread repricing are affecting headlining and effective rents;
📍tenants – especially BTS – are paying particular attention to duly securing the delivery of the building (with agreed specifications and by a certain date);
📍rising operating costs and inflationary pressures are resulting in an increased desire to hedge indexation levels and increase service charges;
📍blackout – attempts to deal with objectified risks beyond the control of the landlord and tenant;
📍optimism, newcomers, expansions – the market continues to push forward despite a series of unprecedented challenges.
Beata Hryniewska, Malgorzata Czepel, Małgorzata Ronkowska, Marcin Janik, Marcin Rojewski