Industrial market Market Insights. 1 Polish Industrial Market Insight 2015 Warszawa Strefa 1 Colliers International

Transcription

1 Industrial market 2016 Market Insights 1 Polish Industrial Market Insight 2015 Warszawa Strefa 1 Colliers International

2 Table of contents Warsaw Zone I... 3 Warsaw Zones II&III...8 Upper Silesia Central Poland Poznań Wrocław Tricity...33 Kraków Bydgoszcz and Toruń Szczecin Salaries within the sector Contacts Industrial Market Market Insights 2016 Warsaw Colliers International Zone 1 Colliers International

3 Warsaw Zone I Distance from Warsaw to Polish borders 2015 year-end review Warsaw is located in the Mazowieckie Voivodeship in centraleastern Poland. The voivodeship is in 1 st place in terms of the amount of regional GDP in Poland. It is the largest city and the capital of Poland, and one of the most important economic, cultural and academic centres in the country. The Warsaw metropolitan area has a combined population of approximately 3.8 million residents. The Warsaw warehouse market is divided into three zones, of which Zone I is the smallest. The radius of Zone I stretches approximately 15 km from the city centre and is concentrated mainly in former industrial areas of Warsaw and around Chopin Airport. > The largest concentration of warehouse space exists around Chopin Airport (Włochy district) and the Ursus and Żerań districts. > The air and rail cargo terminals are 10 km from the centre of Warsaw. > The A2 motorway connects Warsaw with Łódź (130 km) and Poznań (310 km). Source: Colliers International POPULATION 1,735,442 UNEMPLOYMENT RATE 3.4% 5, PLN AVERAGE MONTHLY GROSS SALARY 3 Industrial Market Market Insights 2016 Warsaw Zone 1 Colliers International

4 Demographics Warsaw is the largest city in Poland in terms of the population. Most of the working population in the Mazowieckie Voivodeship are employed in service (66.8%) and industry (21.9%). > 62% of the voivodeship s population are in productive age (Warsaw 60.9%). > Residents with higher education are predominant among the economically active population in the voivodeship. > Residents with secondary, primary and lower education have the highest unemployment rate (17.4%), and those with higher education have the lowest (3.7%). Warsaw is an important academic and cultural center. There are 78 higher educational institutions in the city (105 in the whole voivodeship). > There are approximately 247,500 students in total in Warsaw. > Over 63,900 students graduated in > 24.5% of students attend universities, 16.2% technical universities. > 17,527 attend technical schools. Special Economic Zones The Łódź Special Economic Zone operates in the region of Warsaw. The advantages of the zone are the availability of highly qualified staff, involvement in ICT clusters and the location. 60,000 50,000 40,000 30,000 20,000 10,000 Students and graduates by school type in 2014 Source: Advisory Group TEST Human Resources based on CSO for Warsaw, March ,508 15,186 40,004 7,503 2, ,527 3,468 Foreign language knowledge among graduates at an intermediate level (B1) in the Mazowieckie Voivodeship in % 10.2% 3.7% 9.7% students graduates 2.7% 1.5% > A total area of approximately 1,339 ha. > A total of 286 issued licenses to operate in the SEZ. Infrastructure Warsaw is intersected by 20 regional and national roads as well as 40 railway lines. The city is the main transport hub in the region. > The A2 motorway connects Warsaw with Łódź (130 km) and Poznań (310 km) > The A1/A2 route connects Warsaw with Gdańsk (420 km). > 227 km of new expressways are planned. Source: Advisory Group TEST Human Resources 2015, carried on 46,593 observations, people aged 25-40, with at least bachelor degree Transport infrastructure in the Mazowieckie Voivodeship (km) Current state Planned till 2020 Total 35,935 no data Expressways Motorways 63 0 Cargo Airport Cargo Train Station Source: Colliers International, based on GDDKiA, March Industrial Market Market Insights 2016 Warsaw Zone 1 Colliers International

5 Supply and vacancy During 2015, the supply of modern industrial space in the Warsaw Zone I market increased by 13,800 m². Thereby, increasing the total warehouse stock in Warsaw Zone I to 559,000 m². > Three projects the second phase of Diamond Business Park Ursus (5,200 m2) and two warehouses of Distribution Center (8,600 m2) were delivered in Warsaw Zone I. > No new industrial projects are being constructed in Zone I. > Current industrial stock in the whole Warsaw market totals 2.86 million m 2. The vacancy rate decreased significantly compared to the same period in 2014 by almost 2.5 p.p. and at the end of 2015 it stood at 8.2%. Demand The amount of signed agreements in Zone I constituted barely 1 of the total leased space in the whole Warsaw market. The majority of agreements were new deals (61%). > 64,000 m 2 leased in m 2,000,000 1,500,000 Supply and vacancy rate in ,000, ,000 0 Supply Vacancy rate Leasing agreements structure in 2015 New deals 39% Renegotiations 61% 1 8% 6% 4% 2% > 58 signed agreements. Business sectors The Warsaw Zone I market is highly diversified in terms of business types. Among the major sectors 3PL, production and retail predominate. > 8,900 m² leased in the 3PL sector, 5,700 m 2 in the retail sector, 2,800 m 2 in the production sector. Main business sectors in % 1 5% E-commerce Production Retail 3PL Rental rates Effective rental rates for modern warehouse space in Warsaw Zone I remained stable throughout the year. The maximum rental rate is the highest among all analysed markets. > Effective rental rates in the Warsaw Zone I at the end of the 2015 fluctuated in the range EUR/m² Effective rental rates (EUR/m 2 ) 5 Industrial Market Market Insights 2016 Warsaw Zone 1 Colliers International

6 Developers and investors present in the market The market is dominated by developers and investors with foreign capital. In 2015 three warehouses were built: one by White Star in the Ursus district and two others, currently owned by the CBRE Global Investors fund, which were built near Chopin Airport by Ideal Idea. Developers and investors in the Warsaw Zone I market (Q4 2015) 17.9% 16.2% 13.1% 8.9% 5.8% 5.3% 4.9% > The largest developers and investors in terms of total existing industrial space are Prologis (17.9%), CBRE Global Investors (16.2%) and Hines (13%). > The most active developers and investors during the last 5 years have been CBRE Global Investors, Raiffeisen Capital Management, SEGRO, ECI and Hines. Prognosis Supply Demand Vacancy Rents 6 Industrial Market Market Insights 2016 Warsaw Zone 1 Colliers International

7 Warsaw Zone I Industrial Parks 1. Diamond Business Park Ursus 13. Platan Park I & II 2. Ursus Logistic Center 14. Bokserska Office & Distribution Centre 3. Ideal Idea Park IV 15. Kolmet 4. Ideal Distribution Park 16. Norblin Industrial Park 5. Airport House 17. Annopol Business Park 6. Krakowska Distribution Center 18. Distribution Park Annopol 7. Warsaw Distribution Center 19. Prologis Park Warsaw-Żerań 8. Distribution Park Okęcie 20. SEGRO Business Park Warsaw, Żerań 9. Manhattan Distribution Center 21. Wenecka Logistics & Distribution Center 10. Space Distribution Center 22. Metropol Park Jagiellońska 11. Gate One Business Park 23. Prologis Park Warsaw II 12. Łopuszańska Business Park 24. City Point 7 Industrial Market Market Insights 2016 Warsaw Zones 2&3 Colliers International

8 Warsaw Zones II&III Distance from Warsaw to Polish borders 2015 year-end review Warsaw is located in the Mazowieckie Voivodeship in centraleastern Poland. The voivodeship is in 1 st place in terms of the amount of regional GDP in Poland. It is the largest city and the capital of Poland, and one of the most important economic, cultural and academic centres in the country. The Warsaw metropolitan area has a combined population of approximately 3.8 million residents. Warsaw warehouse market (2.86 million m 2 ) is divided into three zones. Zones II and III cover an area of km and km respectively from the city centre. Zone II includes Błonie, Pruszków, Piaseczno, Janki and Nadarzyn. Warsaw Zone III covers Sochaczew, Mszczonów and Teresin. Industrial space in Zone II contributes over 6 of the total industrial stock existing in the Warsaw market. > The largest concentration of warehouse space exists around Błonie and Pruszków (Zone II). > The air and rail cargo terminals are 10 km from the centre of Warsaw. > The A2 motorway connects Warsaw with Łódź (130 km) and Poznań (310 km). Source: Colliers International POPULATION 3,335,867* UNEMPLOYMENT RATE 4.5%* 4,742.45* PLN AVERAGE MONTHLY GROSS SALARY *Aggregated data for subregions: Warsaw city, Warsaw-Eastern region and Warsaw-Western region 8 Industrial Market Market Insights 2016 Warsaw Zones 2&3 Colliers International

9 Demographics Warsaw is the largest city in Poland in terms of the population. Most of the working population in the Mazowieckie Voivodeship are employed in services (66.8%) and industry (21.9%). > 62% of the voivodeship s population are in productive age (Warsaw 60.9%). > Residents with higher education are predominant among the economically active population in the voivodeship. > Residents with secondary, primary and lower education have the highest unemployment rate (17.4%), and those with higher education have the lowest (3.7%). Warsaw is an important academic and cultural centre. There are 78 higher educational institutions in the city (105 in the whole voivodeship). > There are approximately 252,200 students in total*. > Over 65,600 students graduated in > 24% of students attend universities, 15.9% technical universities. > 31,600 attend technical schools. Special Economic Zones The Łódź Special Economic Zone operates in the region of Warsaw. The advantages of the zone are the availability of highly qualified staff, involvement in ICT clusters and the location. > A total area of approximately 1,339 ha. 60,000 50,000 40,000 30,000 20,000 10,000 Students and graduates by school type in 2014* Source: Advisory Group TEST Human Resources based on CSO, March ,508 15,186 40,004 7,503 7,610 1,591 31,647 6,506 Foreign language knowledge among graduates at an intermediate level (B1) in the Mazowieckie Voivodeship in % 10.2% 3.7% 9.7% students graduates 2.7% 1.5% > A total of 286 issued licenses to operate in the SEZ. Infrastructure Warsaw is intersected by 20 regional and national roads as well as 40 railway lines. The city is the main transport hub in the region. > The A2 motorway connects Warsaw with Łódź (130 km) and Poznań (310 km) > The A1/A2 route connects Warsaw with Gdańsk (420 km). > 227 km of new expressways are planned. Source: Advisory Group TEST Human Resources 2015, carried on 46,593 observations, people aged 25-40, with at least bachelor degree Transport infrastructure in the Mazowieckie Voivodeship (km) Current state Planned till 2020 Total 35,935 no data Expressways Motorways 63 0 Cargo Airport Cargo Train Station Source: Colliers International, based on GDDKiA, March 2016 *Aggregated data for subregions: Warsaw city, Warsaw-Eastern region and Warsaw-Western region 9 Industrial Market Market Insights 2016 Warsaw Zones 2&3 Colliers International

10 Supply and vacancy During 2015, the supply of modern industrial space in the Warsaw Zone II market increased by 52,900 m², while in Zone III 46,200 m 2 of modern industrial space was delivered to the market. The total stock of the whole Warsaw market increased by 112,900 m 2. > Current Warsaw stock totals 2.86 million m 2 of industrial space (stock in Zone II is the largest and amounts to 1.84 million m 2 ; Zone III 464,100 m 2 ). > 7 new projects were delivered to the market in Zone II and 10 industrial projects with a total space of approximately 172,300 m 2 remain under construction. > In Zone III only one project was completed a BTS-type warehouse for ID Logistics in P3 Mszczonów park, the space of which amounts to 46,200 m 2 and constitutes 41% of the total Warsaw market s modern new supply. There is only 1 project under construction the first warehouse object in MLP Teresin (37,600 m 2 ). The vacancy rate at the end of 2015 was at a level of 5.9% in Zone II (compared to 6.2% in 2014) and 7.8% in Zone III (6.5% in 2014). m 2,000,000 1,500,000 1,000, ,000 Supply and vacancy rate in Leasing agreements structure in % 8.4% 41.8% Supply 41.6% Vacancy rate New deals Renegotiations Expansions BTS 1 8% 6% 4% 2% Demand In 2015 in both Zones II and III about 605,800 m 2 of industrial space was leased. The majority of demand was created by renegotiations and new agreements. Zone II was the second most popular market among tenants in Poland (the first was Upper Silesia). > 605,100 m² leased in > 133 signed agreements. Business sectors New deals signed in Warsaw Zones II and III were dominated by the 3PL (26%) and retail (9%) sectors. Main business sectors in % 2 15% 1 5% FMCG Production Retail 3PL The structure of main business sectors in 2015: > 204,500 m 2 leased in the 3PL sector, 75,700 m 2 in retail. Rental rates Effective rental rates for modern warehouse space in Warsaw Zones II and III remained stable throughout the year. > Effective rental rates in Warsaw Zones II and III at the end of the 2015 fluctuated in the range EUR/m² Effective rental rates (EUR/m 2 ) 10 Industrial Market Market Insights 2016 Warsaw Zones 2&3 Colliers International

11 Developers and investors present in the market The market is dominated by developers and investors with foreign capital. In 2015, the total share in terms of newly delivered industrial space was owned by P3 Logistic Parks, which built a BTS-type warehouse for ID Logistics in Mszczonów. > The largest developers and investors in terms of total existing industrial space are Prologis (29.9%), P3 Logistic Parks (13.7%) and MLP Group (10.2%). Developers and investors in the Warsaw Zones I&II market (Q4 2015) 29.9% 13.7% 10.2% 8.6% 7.8% > For the last 5 years, Real Management, MLP Group, P3 Logistic Parks, SEGRO and Logicor have been the most active entities in the market. > Projects by Panattoni, MLP Group, Hillwood, Altmaster and SEGRO remain under construction of which 65.7% belong to Panattoni. Prognosis Supply Demand Vacancy Rents 11 Industrial Market Market Insights 2016 Warsaw Zones 2&3 Colliers International

12 Warsaw Zones II&III Industrial Parks 1. Prologis Park Błonie II 17. Hillwood Ożarów Prologis Park Nadarzyn 2. Hillwood Błonie Panattoni Park Warsaw-Konotopa 34. Logicor Łazy 3. Panattoni Park Błonie III 19. Hillwood Ożarów Piaseczno Business Park 4. Logicor Błonie 20. Parzniew Logistics Center 36. Altmaster Piaseczno Geodetów 5. Metropol Park Błonie 21. Hillwood Pruszków 37. Altmaster Piaseczno Julianówka 6. Błonie Business Park 22. Park Logistyczny Pruszków 38. Logicor Piaseczno 7. P3 Błonie 23. MLP Pruszków I 39. Altmaster Grzędy 8. Prologis Park Błonie I 24. Panattoni Park Grodzisk 40. Panattoni Park Good Point Puławska 9. Logicor Święcice II 25. Goodman Warsaw Logistics Center 41. Good Point Puławska II 10. Logicor Święcice I 26. Altmaster Pęcice 42. Prologis Park Sochaczew 11. Panattoni Park Pruszków II 27. Panattoni Park Janki 43. Prologis Park Teresin 12. MLP Pruszków II 28. Prologis Park Janki 44. Logicor Teresin 13. SEGRO Logistics Park Warsaw, Pruszków 29. Raszyn Business Park 45. MLP Teresin 14. Pruszków Logistic Park 30. Diamond Business Park Raszyn 46. P3 Mszczonów 15. Ożarów Logistic Park 31. SEGRO Logistics Park Warsaw, Nadarzyn 47. Centrum Logistyczne AB Logistyka 16. SEGRO Business Park Warsaw, Ożarów 32. Lexar Distribution Centre 48. Panattoni Park Garwolin 12 Industrial Market Market Insights 2016 Upper Silesia Colliers International

13 Upper Silesia Distance from Katowice to Polish borders 2015 year-end review The Upper Silesia region is located in the Śląskie Voivodeship in southern Poland. It occupies 2 nd place in terms of the amount of regional GDP in Poland. The capital of the voivodeship is Katowice one of the biggest economic centres in Poland. The city is also an important cultural and academic destination. The area includes the special Upper Silesian Industrial Region (GOP), which concentrates an enormous amount of industry. > The largest concentration of warehouse space exists around Gliwice, Sosnowiec and Tychy. > The air cargo terminal is 35 km from the Katowice city centre. Rail cargo terminals are placed in almost every nearby city. > Katowice is connected by motorways with Kraków (80 km), Ostrawa (100 km) and Wrocław (200 km). Source: Colliers International POPULATION 1,893,271* UNEMPLOYMENT RATE 5.1%* 5,199.41* PLN AVERAGE MONTHLY GROSS SALARY *Aggregated data for subregions: bytomski, gliwicki, katowicki, sosnowiecki, tyski 13 Industrial Market Market Insights 2016 Upper Silesia Colliers International

14 Demographics The Śląskie Voivodeship occupies 2 nd position in terms of population in Poland. The majority of working residents are employed in services (57%) and industry (40.1%). > 63.2 % of the population in the voivodeship are in productive age (Katowice 62.5%). > Residents with high and basic vocational education level predominate among the economically active population in the voivodeship. Katowice is an important academic and cultural centre. There are 18 higher educational institutions in the city (41 in the voivodeship). 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Students and graduates by school type in 2014* 23,651 6,079 26,475 7,657 11,241 2,476 35,378 8,150 students graduates > There are approximately 101,900 students in total* (61,400 students in Katowice). > Over 30,400 students graduated in 2014 (18,500 in Katowice). > 23.2% study at universities, 26% at technical universities. > 35,400 students attend technical schools. Special Economic Zones The Katowice Special Economic Zone operates in the Upper Silesia region. > A total area of approximately 2,348 ha. > A total of 250 issued licenses to operate in the SEZ. > The Katowicka Special Economic Zone was recognised to be the best free zone in Europe according to the ranking Global Free Zones of the Year Infrastructure The voivodeship is intersected by two motorways, three expressways and many other national roads. The most important cities in the region are connected by an express ring-road. The region has the most developed transport infrastructure in the country. > The A4 motorway connects Silesia with Kraków (80 km) and Wrocław (200 km) and the A1 motorway, which leads to the Polish-Czech border and connection between Silesia with the Northern Poland is planned. > 75 km of new motorways are planned. > The air cargo terminal is 35 km from the centre of Katowice. Rail cargo terminals are situated in the region s main cities. Source: Advisory Group TEST Human Resources based on CSO, March Foreign language knowledge among graduates at an intermediate level (B1) in the Śląskie Voivodeship in % 10.9% Source: Data based on Advisory Group TEST Human Resources 2015, carried on 46,593 observations, people aged 25-40, with at least bachelor degree Transport infrastructure in the Śląskie Voivodeship (km) Current state Planned till 2020 Total 21,780 no data Expressways Motorways Cargo Airport 2.5% 3.7% 1.5% 1.5% Source: Colliers International based on GDDKiA, Marzec 2016 Cargo Train Station *Aggregated data for subregions: bytomski, gliwicki, katowicki, sosnowiecki, tyski 14 Industrial Market Market Insights 2016 Upper Silesia Colliers International

15 Supply and vacancy During 2015, the supply of modern industrial space in the Silesian market increased by 147,600 m². Eight new industrial objects were delivered to the market. Total current stock stood at 1.75 million m 2. > The biggest project delivered was 45,000 m² of a BTStype warehouse for GE Industrial Solutions in Bielsko- Biała constructed by Panattoni. > Eight new projects are under construction with a total space of almost 100,000 m 2. The vacancy rate decreased in comparison to the same period in 2014 by 3 p.p. and at the end of 2015 it stood at 5.5%. Demand In 2015 in Upper Silesia a historic record volume of transactions was recorded. The majority of demand was constituted by renegotiations and new agreements. > 494,400 m 2 were leased in > 78 signed agreements. m 2,000,000 1,500,000 1,000, ,000 Supply and vacancy rate in Supply Vacancy rate Leasing agreements structure in % 5% New deals 43% Renegotiations Expansions BTS 46% 1 8% 6% 4% 2% Business sectors The dominant sector in terms of new agreements signed in 2015 was the logistics sector, which accounts for about 31% (production stood at 16% of leased space within new agreements). The structure of main business sectors in 2015: > 142,000 m 2 leased in the 3PL sector, 84,000 m 2 in the production sector, 57,800 m 2 in the automotive sector. Rental rates Effective rental rates for warehouse space in the Upper Silesian market were stable in the course of > The effective rental rate in the market at the end of 2015 fluctuated in range EUR/m² Main business sectors in % FMCG 2 Retail 15% Automotive 1 Production 5% 3PL Effective rental rates (EUR/m 2 ) 15 Industrial Market Market Insights 2016 Upper Silesia Colliers International

16 Developers and investors present in the market Both Polish and foreign investors and developers are present in the market. In 2015, the largest share in newly delivered space was owned by Panattoni (91%), which constructed objects in Bielsko-Biała, Sosnowiec, Czeladź and Gliwice. > The largest developers and investors in terms of total existing industrial space are Prologis (28%), SEGRO (14%) and Logicor (12%). > Projects of Goodman, Panattoni and SEGRO are still under construction and will be delivered mainly in Sosnowiec and Gliwice. Developers and investors in the Upper Silesian market (Q4 2015) 28% 14% 12% 8% 7% 6% 5%. Prognosis Supply Demand Vacancy Rents 16 Industrial Market Market Insights 2016 Upper Silesia Colliers International

17 Upper Silesia Industrial Parks 1. Prologis Park Ujazd 14. DL Invest Park Dąbrowa Górnicza 27. WATT Sosnowiec 2. SEGRO Logistics Park Gliwice 15. Distribution Park Będzin 28. Panattoni Park Sosnowiec 3. SEGRO Business Park Gliwice 16. Panattoni Park Czeladź II & III 29. Goodman Sosnowiec Logistics Centre 4. Goodman Gliwice Logistics Centre 17. Distribution Park Sosnowiec 30. Śląskie Centrum Logistyczne 5. Auro Business Park Gliwice 18. Prologis Park Będzin II 31. Logicor Mysłowice 6. Diamond Business Park Gliwice 19. Logicor Czeladź 32. Promont Tychy 7. MLP Gliwice 20. Alliance Silesia Logistics Center 33 MLP Bieruń 8. CityFlex Business Park Gliwice 21. Centrum Logistyczne Milowice 34. MLP Tychy 9. Panattoni Park Gliwice II 22. CityFlex Business Park Sosnowiec 35. SEGRO Industrial Park Tychy I & II 10. Logicor Gliwice I & II 23. CityFlex Business Park Katowice I 36. Panattoni Park Bielsko-Biała II 11. CityFlex Business Park Bytom 24. Górnośląski Park Przemysłowy 37. Hillwood Bielsko-Biała 12. DL Invest Park Psary/Czeladź 25. Prologis Park Chorzów 13. Prologis Park Dąbrowa Górnicza 26. CityFlex Business Park Katowice II 17 Industrial Market Market Insights 2016 Central Poland Colliers International

18 Central Poland Distance from Łódź to Polish borders 2015 year-end review Central Poland (Łódź region) is located in the central part of Poland. The voivodeship is in 6 th place in terms of the amount of regional GDP in Poland. Łódź is a former textile production complex and is currently an important academic and cultural, as well as business and industrial centre. > The largest concentration of warehouse space exists around Stryków (next to the intersection of the A1/A2 motorways) and in the industrial district of Łódź Widzew. > The air and rail cargo terminals are 15 km from the centre of Łódź. Source: Colliers International > Łódź and Warsaw are connected by the A2 motorway (130 km). POPULATION 706, UNEMPLOYMENT RATE 9.5% 3, PLN AVERAGE MONTHLY GROSS SALARY 18 Industrial Market Market Insights 2016 Central Poland Colliers International

19 Demographics Łódź is the third city in Poland in terms of the population. 56.3% of the working population are employed in services, 31.6% in industry and 12.3% in agriculture. > 61.9% of the population in the voivodeship are in productive age (Łódź 60.7%). > Among the economically active population in the voivodeship, residents with post-secondary education predominate. Over half of inhabitants have secondary education or average and basic vocational education. Łódź is an important academic and cultural centre. In the city there are 23 higher educational institutions (30 in the voivodeship). 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Students and graduates by school type in ,269 9,468 22,176 4,280 1, ,808 1,311 students graduates > There are approximately 80,700 students in total in Łódź. > Almost 21,300 graduates in > 42.5% of students attend universities, 27.5% technical universities. > 7,800 attend technical schools. Special Economic Zones The Łódź Special Economic Zone operates in the region. The advantages of being located in the zone are the availability of highly qualified staff, involvement in ICT clusters and the welldeveloped transport infrastructure. Moreover, the region stands out thanks to the railway connection with China (Łódź-Chengdu). > Total area of approximately 1,339 ha. Source: Advisory Group TEST Human Resources based on CSO for Łódź, March Foreign language knowledge among graduates at an intermediate level (B1) in the Łódzkie Voivodeship in % 10.9% 2.5% 5.4% % > A total of 286 issued licenses to operate in the SEZ. > From the beginning of its existence, Łódź Special Economic Zone has contributed to creating 33,200 new jobs. Source: Advisory Group TEST Human Resources 2015, carried on 46,593 observations, people aged 25-40, with at least bachelor degree Infrastructure Łódź is crossed by 6 regional and national roads and 11 railway lines. > The A2 motorway connects Łódź with Warsaw (130 km) and Poznań (200 km). > 154 km of new expressways and motorways are planned. > The airport and rail cargo terminals are within 15 km. Transport infrastructure in the Łódzkie Voivodeship (km) Current state Planned till 2020 Total 19,940 no data Expressways Motorways Cargo Airport Cargo Train Station Source: Colliers International, based on GDDKiA, March Industrial Market Market Insights 2016 Central Poland Colliers International

20 Supply and vacancy In 2015 supply in Central Poland increased by 47,000 m 2. > Two warehouses of the new Panattoni Business Center Łódź II park were delivered to the market as well as a BTO industrial project for UPS. > Two warehouses totalling 88,000 m 2 are under construction and will create a new industrial park in Central Poland Panattoni Park Stryków II. > The current stock amounts to 1.16 million m 2 of industrial space. The vacancy rate decreased compared to the same period in 2014 by almost 1.2 p.p. and at the end of 2015 the rate was 2.7%. m 2,000,000 1,500,000 Supply and vacancy rate in ,000, ,000 0 Supply Vacancy rate Leasing agreements structure in % 6% 4% 2% Demand The amount of signed agreements ranks Central Poland in third position (after Warsaw and Upper Silesian markets) in terms of the volume of transactions. The largest part of demand was formed by new agreements. 5% 16% 36% 43% New deals Renegotiations Expansions BTS > 369,700 m² leased in > 33 signed agreements. Business sectors The predominant sectors in terms of new agreements signed in 2015 were production and retail, which account for about 19% each. The structure of main business sectors in 2015: > 93,400 m 2 leased in 3PL, 93,300 m 2 in production, 83,100 m 2 in retail. Main business sectors in % 2 15% 1 5% FMCG Retail Production 3PL Rental rates Effective rental rates for modern warehouse space in Central Poland remained stable throughout the year. The minimum rental fee increased slightly only at the beginning of the year. > Effective rental rates in Central Poland at the end of the 2015 year fluctuated in the range EUR/m² Effective rental rates (EUR/m 2 ) Industrial Market Market Insights 2016 Central Poland Colliers International

21 Developers and investors present in the market The market is dominated by developers and investors with foreign capital. In 2015, Panattoni constructed new industrial projects in Łódź and Stryków. Developers and investors in the Central Poland market (Q4 2015) > The largest developers and investors in terms of total existing industrial area are SEGRO (23%), Logicor (21%), Prologis (15%), Emerson (12%) and TFI PZU (12%). 23% 21% 15% 12% 11% 6% 4% > A new industrial park in Stryków is currently under construction being built by Panattoni. Prognosis Supply Demand Vacancy Rents 21 Industrial Market Market Insights 2016 Central Poland Colliers International

22 Central Poland Industrial Parks 1. Goodman Łódź Logistics Center III 15. Panattoni Park Łódź East 2. Hillwood Łódź 16. SEGRO Logistics Park Łódź 3. SEGRO Logistics Park Stryków I & II 17. SEGRO Logistics Park Widzew 4. Logicor Stryków 18. Panattoni Park Łódź Olechów 5. Prologis Park Stryków 19. Logicor Łódź II 6. Diamond Business Park Stryków 20. ŁSSE Olechów 7. Panattoni Park Stryków II 21. Logicor Łódź III 8. Martis Logistic Center 22. Goodman Łódź Logistics Centre 9. MLP Łódź 23. Goodman Łódź Logstics Centre II 10. SEGRO Business Park Łódź I & II 24. P3 Piotrków 11. Panattoni Business Center Łódź II 25. Prologis Park Piotrków II 12. Aviva Business Centre Łódź 26. Logistic City 13. Panattoni Business Center Łódź I 27. Prologis Park Piotrków 14. Logicor Łódź I 22 Industrial Market Market Insights 2016 Poznań Colliers International

23 Poznań Distance from Poznań to Polish borders 2015 year-end review Poznań is located in central-western Poland, in the central part of the Wielkopolskie Voivodeship. The region occupies 3 rd place in terms of the amount of regional GDP in the country. The city is an important centre for both tourism and culture, as well as industrial and commercial logistics. > The largest concentration of warehouse space exists around Żerniki and Gądki and in the surroundings of Tarnów Podgórny, Swarzędz as well as Komorniki. > The air and rail cargo terminals are 10 km from the centre of Poznań. Source: Colliers International > Poznań and Warsaw are connected by the A2 motorway (310 km). POPULATION 545,680 UNEMPLOYMENT RATE 2.4% 4, PLN AVERAGE MONTHLY GROSS SALARY 23 Industrial Market Market Insights 2016 Poznań Colliers International

24 Demographics Poznań is the 5 th city in Poland in terms of population. 51.8% of working residents are employed in services, 35.1% in industry and 12.9% in agriculture. > 63.1% of the population in the voivodeship are in productive age (Poznań 62.3%). > Residents with basic vocational education are predominant among the economically active population in the voivodeship. > Poznań is characterised by the lowest unemployment rate among regional cities. 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Students and graduates by school type in ,449 8,850 20,668 5,409 2, ,337 1,605 students graduates Poznań is an important academic and cultural centre. There are 25 higher educational institutions in the city (38 in the voivodeship). > There are approximately 117,000 students in total in Poznań. > Over 32,500 graduates in > 31.2% of students attend universities, 17.7% technical universities. > 8,300 students study at technical schools. Special Economic Zones The Kostrzyńsko-Słubicka Special Economic Zone operates in the city s surroundings. > A total area of approximately 1,868 ha. > The Kostrzyńsko-Słubicka Special Economic Zone offers the lease of industrial space together with logistics services. Source: Advisory Group TEST Human Resources based on CSO for Poznań, March Foreign language knowledge among graduates at an intermediate level (B1) in the Wielkopolskie Voivodeship in % 15.8% 2.9% 4.8% 2.1% 0.7% Infrastructure Poznań is intersected by 9 regional and national roads and 20 railway lines, which makes the city one of the most important transport hubs in Poland. > The A2 motorway connects Poznań with Berlin (270 km). > 111 km of new expressways and motorways are planned. > The air and rail cargo terminals are 10 km from the city centre. Source: Advisory Group TEST Human Resources 2015, carried on 46,593 observations, people aged 25-40, with at least bachelor degree Transport infrastructure in the Wielkopolskie Voivodeship (km) Current state Planned till 2020 Total 28,010 no data Expressways Motorways Cargo Airport Cargo Train Station Source: Colliers International, based on GDDKiA, March Industrial Market Market Insights 2016 Poznań Colliers International

25 Supply and vacancy In 2015, the Poznań market, compared with other regional cities, was characterised by the highest level of activity among developers. Total industrial stock increased by 226,800 m 2. Despite this, the Poznań market still has the highest level of space under construction. > 9 industrial projects were delivered to the market. The largest one was a BTS-type warehouse constructed for Intermarché (82,400 m 2, Goodman). > 11 warehouses totalling 209,300 m 2 are under construction. > Current industrial stock amounts to 1.38 million m 2 of industrial space. The vacancy rate increased compared to the same period in 2014 by 1.4 p.p. At the end of 2015 the rate stood at 2%. m 2,000,000 1,500,000 Supply and vacancy rate in ,000, ,000 0 Supply Vacancy rate Leasing agreements structure in % 6% 4% 2% Demand The volume of transactions for industrial space in Poznań decreased in comparison to last year. Nevertheless, it still remains at a high level. In 2015, the demand was mainly constituted by new agreements. > 248,600 m 2 leased in % 13% 68% New deals Renegotiations BTS > 40 signed agreements. Business sectors The predominant sector in terms of new agreements signed in 2015 was 3PL, which accounted for about 27% (e-commerce 16% of leased space within new agreements). The structure of main business sectors in 2015: > 68,800 m² leased in the 3PL sector, 26,500 m 2 in the e-commerce sector. Rental rates Effective rental rates for warehouse space in the Poznań market were stable during Maximum rates slightly increased at the beginning of the year. > The effective rental rate in the Poznań market at the end of 2015 fluctuated in range EUR/m² Main business sectors in % FMCG 2 Production 15% Retail 1 E-commerce 5% 3PL Effective rental rates (EUR/m 2 ) 1 25 Industrial Market Market Insights 2016 Poznań Colliers International

26 Developers and investors present in the market Both Polish and foreign investors and developers are present on the market. In 2015, the largest share in terms of delivered industrial space was owned by Goodman, which delivered to the market two warehouses at the new Goodman Poznań Airport Logistics Centre and a warehouse in Goodman Poznań II Logistics Centre. Developers and investors in the Poznań market (Q4 2015) 21% 18% 12% 11% 1 1 7% > The largest developers and investors in terms of total existing space are Panattoni (21%), SEGRO (18%), Prologis (12%), CLIP (11%), Goodman (1) and Logicor (1). > Among the warehouses remaining under construction, Panattoni s projects dominate (119,300 m 2 ). Prognosis Supply Demand Vacancy Rents 26 Industrial Market Market Insights 2016 Poznań Colliers International

27 Poznań Industrial Parks 1. Goodman Poznań Logistics Centre 14. SEGRO Logistics Park Poznań, Komorniki 2. MLP Poznań Zachód 15. POZLOGIS 3. Prologis Park Poznań I 16. Park Przemysłowy Luboń 4. Goodman Poznań II Logistics Centre 17. Logicor Poznań I 5. Prologis Park Poznań II 18. Panattoni Park Poznań VI 6. Goodman Poznań Airport Logistics Centre 19. Panattoni Park Poznań III 7. Panattoni Park Poznań Airport 20. MLP Poznań 8. CLIP Poznań 21. Panattoni Park Poznań I 9. Centrum Logistyczno-Magazynowe Kostrzyn 22. Logicor Poznań III 10. Panattoni Park Poznań V 23. P3 Poznań 11. MLP Poznań Południe 24. Logicor Poznań II 12. Prologis Park Poznań III 25. SEGRO Logistics Park Poznań, Gądki 13. Panattoni Park Poznań IV 26. Doxler Business Park 27 Industrial Market Market Insights 2016 Wrocław Colliers International

28 Wrocław Distance from Wrocław to Polish borders 2015 year-end review Wrocław is located in south-western Poland, in the eastern part of the Dolnośląskie Voivodeship. Dolnośląskie ranks 4 th in terms of the amount of regional GDP in the country. The city is an important centre for both tourism and culture as well as industrial, business and commercial services. > The largest concentration of warehouse space exists around Bielany Wrocławskie and Nowa Wieś Wrocławska. > The air and rail cargo terminals are located respectively 15 km and 3 km from the city centre. Source: Colliers International > Wrocław and Warsaw are connected by the S8 expressway (approx. 360 km). POPULATION 634, UNEMPLOYMENT RATE 3.4% 4, PLN AVERAGE MONTHLY GROSS SALARY 28 Industrial Market Market Insights 2016 Wrocław Colliers International

29 Demographics Wrocław is the 4 th city in Poland in terms of population. 60.5% of working residents are employed in services, 34.7% in industry and 4.6% in agriculture. > 63.5 % of the population in the voivodeship are in productive age (Wrocław 62.7%). > Residents with higher education are predominant among the economically active population in the voivodeship (32.4%). Wrocław is an important academic and cultural centre. There are 25 higher educational institutions in the city (38 in the voivodeship). 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Students and graduates by school type in ,721 6,459 32,786 7,320 2, ,916 1,304 students graduates > There are approximately 122,100 students in total in Wrocław. > Almost 31,600 students graduated in > 21% of students attend universities, 27% technical universities. > 6,900 students study at technical schools. Special Economic Zones Four subzones of the Special Economic Zones operate in the city region Wałbrzyska, Tarnobrzeska, Legnicka and Kamiennogórska. > A total area of approximately 6,776 ha. > A total of 746 issued licenses to operate in the SEZs. Infrastructure Wrocław is intersected by 6 regional and national roads and 27 railway lines (one only for cargo use). > The A4 motorway connects Wrocław with Katowice (200 km) and Dresden (Germany) 270 km. > 171 km of new expressways are planned. > The air and rail cargo terminals are within a distance of 15 km and 3 km respectively from the city centre. Source: Advisory Group TEST Human Resources based on CSO for Wrocław, March Foreign language knowledge among graduates at an intermediate level (B1) in the Dolnośląskie Voivodeship in % 18. Source: Advisory Group TEST Human Resources 2015, carried on 46,593 observations, people aged 25-40, with at least bachelor degree Transport infrastructure in the Dolnośląskie Voivodeship (km) 2.5% 4.8% % Current state Planned till 2020 Total 19,229 no data Expressways Motorways Cargo Airport Cargo Train Station Source: Colliers International, based on GDDKiA, March Industrial Market Market Insights 2016 Wrocław Colliers International

30 Supply and vacancy During 2015, the supply of modern industrial space in the Wrocław region increased by 111,300 m². > 5 projects were delivered to the market 2 industrial objects in the Goodman Wrocław IV Logistics Centre (one as a BTS-type for Gestamp), a warehouse for Bodycote completed by P.A. Nova, a project in Panattoni Park Wrocław III (45.6% of new supply) and a warehouse belonging to Prologis Park Wrocław V. > 5 warehouses totalling 99,200 m 2 are under construction. > Currently, the total industrial stock amounts to 1.29 million m 2. The vacancy rate increased significantly compared to the same period in 2014 by almost 3.5 p.p. and at the end of 2015 the rate stood at 5.5%. This was caused due to the fact that renegotiations and BTS transactions had a great share in the demand structure. At the same time, part of the space delivered in 2015 was partly speculative. Demand Demand for industrial space remains at a high level. In 2015, the majority of demand was made up of renegotiations. The share of BTS-type developments was notable. > 253,600 m 2 leased in > 51 signed agreements. Business sectors The predominant sector in terms of new agreements signed in 2015 was 3PL, which accounts for about 27% (e-commerce 1 of space leased within new agreements). The majority of renegotiations was constituted by production space (21%). m 2,000,000 1,500,000 1,000, ,000 Supply and vacancy rate in Leasing agreements structure in % 19% 39% Supply 36% Main business sectors in % 1 5% Vacancy rate New deals Renegotiations Expansions BTS E-commerce Retail Electronics Production 3PL 1 8% 6% 4% 2% The structure of main business sectors in 2015: > 48,500 m² leased in the 3PL sector, 47,500 m 2 in the production sector, 30,000 m 2 in the electronics sector. Rental rates Effective rental rates for warehouse space in the Wrocław market remained stable throughout the year. > The effective rental rate in the market at the end of 2015 fluctuated in range EUR/m² Effective rental rates (EUR/m 2 ) 30 Industrial Market Market Insights 2016 Wrocław Colliers International

31 Developers and investors present in the market Both Polish and foreign investors and developers are present in the market. In 2015, the largest share in terms of delivered industrial space was owned by Panattoni (46%) and Goodman (36%), which constructed new projects in the south of Wrocław, near the intersection of the city s bypass and the A4 motorway. Developers and investors in the Wrocław market (Q4 2015) 4 18% 15% 1 5% > The largest developers and investors in terms of total existing industrial space are Prologis (4), Goodman (18%), Panattoni (15%) and Hillwood (1). > Over half of industrial space which is now under construction will be delivered to the market by Panattoni (65%), which will build new objects within two new industrial parks Panattoni Park Wrocław IV & V. Prognosis Supply Demand Vacancy Rents 31 Industrial Market Market Insights 2016 Wrocław Colliers International

32 Wrocław Industrial Parks 1. Prologs Park Wrocław IV 14. Gazowa Industrial Park 2. Hillwood Wrocław II 15. Panattoni Park Wrocław Airport 3. Panattoni Park Wrocław II 16. Prologis Park Wrocław Airport 4. Panattoni Park Wrocław IV 17. Magazyny Nowa Siódemka 5. Prologis Park Wrocław V 18. Distribution Park Wrocław 6. Panattoni Park Wrocław I 19. Aviva Business Centre Wrocław 7. Goodman Wrocław South Logistics Centre 20. Goodman Wrocław East Logistics Centre 8. Hillwood Wrocław I 21. MKD Wrocław 9. Panattoni Park Wrocław III 22. SEGRO Industrial Park Wrocław 10. Prologis Park Wrocław I 23. MLP Wrocław 11. Tiner Logistics Park 24. Panattoni Park Wrocław 12. Panattoni Park Wrocław VI 25. Vatt Długołęka 13. Goodman Wrocław IV Logistics Centre 26. Eurologis Centrum Logistyczne 32 Industrial Market Market Insights 2016 Tricity Colliers International

33 Tricity Distance from Gdańsk to Polish borders 2015 year-end review Tricity the metropolitan area formed by Gdańsk, Gdynia and Sopot is located in the Pomorskie Voivodeship on the Gulf of Gdańsk. The region occupies 7 th place in terms of the amount of regional GDP in Poland. The Tricity agglomeration with access to the sea is an important transport and logistics centre, as well as a tourist destination. > The largest concentration of warehouse space exists around Kowale, Pruszcz Gdański and Gdańsk airport. > The air and rail cargo terminals are 20 km from Gdańsk city centre. There is also easy access to the two seaports (Gdynia, Gdańsk). Source: Colliers International > Gdańsk and Warsaw are connected by the A1/A2 motorways (420 km) and the national road No. 7 (340 km). POPULATION 774, UNEMPLOYMENT RATE 4.3% 4, PLN AVERAGE MONTHLY GROSS SALARY 33 Industrial Market Market Insights 2016 Tricity Colliers International

34 Demographics Tricity is one of the largest urban centres in Poland. Gdańsk is the centre of the agglomeration and also the voivodeship capital. (462,000 residents in Gdańsk, which is 6 of the Tricity population). 6 of working residents are employed in services, 32.9% in industry and 6.5% in agriculture. > 62.8% of the population in the voivodeship are in productive age (Gdańsk 61.9%). > Residents with higher education (30.5%) and with basic vocational education (27.8%) are predominant among the economically active population in the voivodeship. Tricity is an important academic and cultural centre. There are 20 higher educational institutions in the agglomeration (13 in Gdańsk, 27 in the voivodeship). > There are approximately 92,200 students in total in Tricity. > Almost 23,800 students graduated in > 29.2% of students attend universities, 27% technical universities. > 9,500 students study at technical schools. Special Economic Zones The Pomeranian Special Economy Zone operates in the region of the city. The zone s activity mainly focuses on new technologies in the maritime sector. The zone has two shipyard projects. > The total area of the SEZ amounts to 2,040 ha. 30,000 25,000 20,000 15,000 10,000 Students and graduates by school type in 2014 Source: Advisory Group TEST Human Resources based on CSO for Tricity, March ,000 0 Foreign language knowledge among graduates at an intermediate level (B1) in the Pomorskie Voivodeship in % 26,896 7, % 24,902 5,475 2, % 5. 9,484 2,090 students graduates 1.9% 0.9% > 121 companies have invested in the zone. Infrastructure The agglomeration is intersected by 10 regional and national roads and 26 railway lines. > The A1 motorway connects Tricity with Łódź (330 km) and Warsaw (A1/A2 420 km). > 173 km of new expressways are planned. > The air and rail cargo terminals are 20 km from the Gdańsk city centre. > Access to 2 seaports (in Gdańsk and Gdynia). > In Tricity there are 4 cargo terminals including DCT Gdańsk (annual handling capacity of more than 1,000,000 TEU). Source: Advisory Group TEST Human Resources 2015, carried on 46,593 observations, people aged 25-40, with at least bachelor degree Transport infrastructure in the Pomorskie Voivodeship (km) Current state Planned till 2020 Total 13,000 no data Expressways Motorways 66 0 Cargo Airport Cargo Train Station Source: Colliers International, based on GDDKiA, March 2016 Seaport 34 Industrial Market Market Insights 2016 Tricity Colliers International

35 Supply and vacancy During 2015, the supply of modern industrial space in the Tricity region increased by 66,400 m². > 3 industrial projects were delivered to the market 2 further phases of Pomeranian Logistics Centre (Goodman) totalling 39,300 m2 and a new project which belongs to SEGRO Logistics Park Gdańsk (27,100 m 2 ). > 3 warehouses of 50,500 m 2 are under construction. > Currently, the total industrial stock amounts to 314,300 m 2 of industrial space. The vacancy rate increased in comparison to the same period in 2014 by 1 p.p. and at the end of 2015 it stood at 5.8%. Demand Demand in the Tricity market decreased in 2015 by almost 10,000 m² compared to the previous year. The majority of industrial space was leased within new agreements. > 78,100 m² leased in > 24 signed agreements. m 2,000,000 1,500,000 Supply and vacancy rate in ,000, ,000 0 Supply Vacancy rate Leasing agreements structure in % New deals Renegotiations 84% 1 8% 6% 4% 2% Business sectors In 2015, the structure of demand in Tricity was not very diverse. The predominant sector in terms of new agreements signed in 2015 was the 3PL sector, which accounted for about 24%. The structure of main business sectors in 2015: > 15,500 m 2 leased in the 3PL sector, 2,500 m 2 in the production sector. Rental rents Effective rental rates for warehouse space in the Tricity market didn t change their level throughout the year. Main business sectors in % 6 45% 3 15% Production 3PL Other > The effective rental rate in the Tricity market at the end of 2015 fluctuated in range EUR/m Effective rental rates (EUR/m 2 ) 35 Industrial Market Market Insights 2016 Tricity Colliers International

36 Developers and investors present in the market Both Polish and foreign developers and investors are present in the market. In 2015, those who delivered their projects to the market were Goodman in Gdańsk and SEGRO in Pruszcz Gdański. > The largest developers and investors in terms of total existing industrial space are Prologis (29%), 7r Logistic (17%), Goodman (17%) and SEGRO (1). Developers and investors in the Tricity market (Q4 2015) 29% 17% 17% 1 9% 6% 5% > 7r Logistics (Kowale near Gdańsk), Panattoni (Pruszcz Gdański) and Port of Gdynia Authority S.A. have projects under construction. Prognosis Supply Demand Vacancy Rents 36 Industrial Market Market Insights 2016 Tricity Colliers International

37 Tricity Industrial Parks 1. Prologis Park Gdańsk Airport 6. 7R Logistic Gdańsk Kowale II 2. Pomorskie Centrum Logistyczne 7. 7R Logistic Gdańsk Kowale IV, V, VI 3. Panattoni Park Gdańsk 8. SEGRO Logistics Park Gdańsk 4. 7R Logistc Gdańsk Kowale I 9. Panattoni Park Gdańsk II 5. 7R Logistic Gdańsk Kowale III 37 Industrial Market Market Insights 2016 Kraków Colliers International

38 Kraków Distance from Kraków to Polish borders 2015 year-end review Kraków is a city situated in southern Poland, in the north-west part of the Małopolskie Voivodeship. The voivodeship is in 5 th place in terms of the amount of regional GDP in Poland. The city, which is mainly associated with tourism, is also an important economic centre. > The largest concentration of warehouse projects exists around the Rybitwy area in the Kraków XIII district - Podgórze. > The air and rail cargo terminals are 15 km from the centre of Kraków. Source: Colliers International > Kraków and Warsaw are connected by national road No. 7 (300 km). POPULATION 761,873 UNEMPLOYMENT RATE 4.5% 4, PLN AVERAGE MONTHLY GROSS SALARY 38 Industrial Market Market Insights 2016 Kraków Colliers International

39 Demographics Kraków is the 2 nd city in Poland in terms of population. 58.2% of working residents are employed in services, 30.4% in industry and 11% in agriculture. > 62.8% of the population in the voivodeship are in productive age (the same as in Kraków). > Residents with higher education predominate among the economically active population in the voivodeship (31%) as well as those with basic vocational education (3). Kraków is an important academic and cultural centre. There are 21 higher educational institutions in the city (31 in the voivodeship). 50,000 40,000 30,000 20,000 10,000 0 Students and graduates by school type in ,403 10,310 48,389 12,910 2, ,450 2,428 students graduates > There are approximately 165,900 students in total in Kraków. > Over 46,500 graduates in > 25.6% of students attend universities, 29.2% technical universities. > 11,500 students attend technical schools. Special Economic Zones Kraków Special Economic Zone Kraków Technology Park operates in the region of the city. The zone s activity is focused on the high-tech industry. The zone offers mainly greenfield area. > Total area of approximately 700 ha. > A total of 208 issued licenses to operate in the SEZ. Infrastructure Kraków is crossed by 6 regional and national roads and 26 railway lines. > The A4 motorway connects Kraków with Katowice (80 km) and Rzeszów (170 km). > 24 km of new expressways are planned before 2020 and the S7 highway is to be extended to the northern border of the voivodeship. > The air and rail cargo terminal is 15 km and 10 km respectively from the centre of Kraków. Source: Advisory Group TEST Human Resources based on CSO for Kraków, March Foreign language knowledge among graduates at an intermediate level (B1) in the Małopolskie Voivodeship in % 11.4% Source: Advisory Group TEST Human Resources 2015, carried on 46,593 observations, people aged 25-40, with at least bachelor degree Transport infrastructure in the Małopolskie Voivodeship (km) 3.8% 5.7% 2.7% 2.1% Current state Planned till 2020 Total 24,337 no data Expressways Motorways Cargo Airport Cargo Train Station Source: Colliers International, based on GDDKiA, March Industrial Market Market Insights 2016 Kraków Colliers International

40 Supply and vacancy During 2015, the supply of modern industrial space in the Kraków market increased by 40,300 m². > 3 new warehouses were delivered to the market including an industrial object in Centrum Logistyczne Kraków-Kokotów (7r Logistic) totalling 13,500 m 2, a Pamattoni Park Kraków II warehouse (15,300 m 2 ) and a new project in Goodman Kraków Airport Logistics Centrer (11,400 m 2 ). > Another scheme is under construction and will join Centrum Logistyczne Kraków-Kokotów which totals 13,700 m 2. > Currently, the total industrial stock amounts to 212,600 m 2. The vacancy rate significantly decreased compared to the same period in 2014 by almost 3.8 p.p. At the end of 2015 it was 2%. A lot of new tenants have entered the market. Demand The interest among tenants in industrial space in 2015 significantly increased compared to the previous year. The level of demand was higher by approximately 7 than in The majority of deals were for new agreements. > 92,200 m 2 leased in > 23 signed agreements. m 2,000,000 1,500,000 1,000, ,000 Supply and vacancy rate in Leasing agreements structure in % 5%3% 74% Supply Vacancy rate Main business sectors in New deals Renegotiations Expansions BTS 1 8% 6% 4% 2% Business sectors The predominant sector in terms of new agreements in 2015 was 3PL, which accounts for about 29% (retail 9%). The structure of main business sectors in 2015: > 39,100 leased by 3PL, 7,700 m2 by FMCG, 6,000 m2 by retail Retail FMCG 3PL Rental rates Effective rental rates for warehouse space in the Kraków market remained stable throughout the year. The market remains the most expensive just after Warsaw Zone I due to the high price of investment land. > The effective rental rate in the Kraków market at the end of 2015 fluctuated in range EUR/m² Effective rental rates (EUR/m 2 ) 40 Industrial Market Market Insights 2016 Kraków Colliers International

41 Developers and investors present in the market Both Polish and foreign developers and investors are present in the market. In 2015 the share in newly delivered space was divided between Goodman, 7r Logistic and Panattoni. > The largest developers and investors in terms of total existing industrial space are Goodman (38%), Polish company which is active only in the Kraków market - MK Logistics (15%), Logicor (1) and Biuro Inwestycji Kapitałowych (9%). Developers and investors in the Kraków market (Q4 2015) 38% 15% 1 9% 7% 6% 6% > Currently, 7r Logistic has one project under construction in Kokotów, near Kraków. Prognosis Supply Demand Vacancy Rents 41 Industrial Market Market Insights 2016 Kraków Colliers International

42 Kraków Industrial Parks 1. Goodman Kraków Airport Logistic Center 8. Magazyn BUMA 2. Witek Airport Logistics Center 9. Centrum Logistyczne Kraków II 3. Centrum Magazynowe Cholerzyn 10. MARR Business Park 4. Panattoni Park Kraków II 11. MK Logistics Park 5. Logicor Kraków 12. Centrum Logistyczne Kraków Kokotów 6. Centrum Magazynowe Łęgprzem 13. Centrum Logistyczne Kraków III 7. Centrum Logistyczne Kraków I 42 Industrial Market Market Insights 2016 Bydgoszcz and Toruń Colliers International

43 Bydgoszcz and Toruń Distance from Bydgoszcz to Polish borders 2015 year-end review The Bydgoszcz and Toruń metropolitan area is situated in the north of Poland, in the central part of the Kujawsko- Pomorskie Voivodeship. The voivodeship is 8 th in terms of the amount of regional GDP in Poland. The cities located 50 km from each other are important economic, cultural, academic and tourism centres in the region. The region hosts the Bydgoszcz and Toruń Industrial Zone, which specialises in the chemical industry. > The largest concentration of warehouse space exists next to the borders of the cities near main traffic arteries. > The air and rail cargo terminals are 5 km from the centre of Bydgoszcz. There is also a separate rail cargo terminal in Toruń. > Toruń is connected with Gdańsk (170 km) and Łódź (175 km) by the A1 motorway. Source: Colliers International POPULATION 774, UNEMPLOYMENT RATE 7.4% 3, PLN AVERAGE MONTHLY GROSS SALARY 43 Industrial Market Market Insights 2016 Bydgoszcz and Toruń Colliers International

44 Demographics Bydgoszcz is the biggest city in the voivodeship and the 8 th city in Poland in terms of population (357,700 residents; 203,200 in Toruń). The majority of working residents are employed in services (54.7%), 31.1% in industry and 14.1% in agriculture. > 63.3% of the population in the voivodeship are in productive age (Bydgoszcz 61.9%, Toruń 63.3%). > Residents with basic vocational education are predominant among the economically active population in the voivodeship. 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Students and graduates by school type in ,692 11, , ,941 2,975 students graduates The agglomeration is an important academic and cultural centre. There are 14 higher educational institutions within the area of both cities (21 in the voivodeship). > Approximately 61,000 students in total study in the Bydgoszcz-Toruń agglomeration. Source: Advisory Group TEST Human Resources based on CSO for Bydgoszcz-Toruń agglomeration, March 2016 > Over 18,300 students graduated in > The vast majority of students attend universities (60.2%). > There are 11,900 students in technical schools. Foreign language knowledge among graduates at an intermediate level (B1) in the Kujawsko- Pomorskie Voivodeship in 2015 Special Economic Zones The Pomeranian Special Economic Zone operates in the region of the Bydgoszcz-Toruń agglomeration. The zone s activity is mainly focused on the high-tech, biotechnology and maritime sectors. > A total area of approximately 2,040 ha. > A total of 121 companies have invested in the zone % 10.8% 1.9% 6.5% 0.8% 0.8% Infrastructure The agglomeration is intersected by 22 regional and national roads. The Bydgoszcz rail hub is operated by 7 railway lines. > A1 motorway connects Toruń with Gdańsk (170 km) and Łódź (175 km). > 150 km of new expressways are planned up to > The air and rail cargo terminals are 5 km far from the centre of Bydgoszcz (the cargo terminal in Toruń). Source: Advisory Group TEST Human Resources 2015, carried on 46,593 observations, people aged 25-40, with at least bachelor degree Transport infrastructure in the Kujawsko- Pomorskie Voivodeship (km) Current state Planned till 2020 Total 16,962 no data Expressways Motorways Cargo Airport Cargo Train Station Source: Colliers International, based on GDDKiA, March Industrial Market Market Insights 2016 Bydgoszcz and Toruń Colliers International

45 Supply and vacancy The Bydgoszcz-Toruń market was the only one among those analysed where no new projects were delivered to the market in > A warehouse which belongs to Panattoni Park Bydgoszcz which will total 16,000 m 2 is now under construction. > Currently, the total industrial stock amounts to 123,400 m 2. The vacancy rate significantly decreased from 29% recorded in 2014 to currently the lowest level in the country 1.3%. Such a huge difference is caused by the fact that in this emerging market even a small change in the leasing structure results in a high fluctuation of the vacancy rate. Moreover, in 2015 tenant interest in the industrial market was higher than in the previous year. Demand In 2015, the level of demand in the Bydgoszcz and Toruń market was nearly 5 times higher than in The vast majority of transactions were for new agreements. > 68,000 m 2 leased in > 7 signed agreements. Business sectors Unaffiliated business activities predominated among new agreements in The structure of main business sectors in 2015: > 12,500 m 2 leased in the automotive sector, 1,800 m 2 in the 3PL sector. Rental rates Effective rental rates for warehouse space in the Bydgoszcz- Toruń market remained stable throughout the year. > The effective rental rate in the market at the end of 2015 fluctuated in range EUR/m². m 2,000,000 1,500,000 Supply and vacancy rate in ,000, ,000 0 Supply Vacancy rate Leasing agreements structure in % New deals BTS 82% Main business sectors in PL 4 Automotive Other 2 Effective rental rates (EUR/m 2 ) 1 8% 6% 4% 2% 45 Industrial Market Market Insights 2016 Bydgoszcz and Toruń Colliers International

46 Developers and investors present in the market The Bydgoszcz and Toruń market is dominated by Goodman, Panattoni and LCP, which are the only three companies offering warehouse space in the region. Developers and investors in the Bydgoszcz- Toruń market (Q4 2015) > The largest share in the market is owned by Goodman, which owns over half of the existing industrial space. 53% 25% 22% > Panattoni s industrial project is the only one which remains under construction. > Companies such as Waimea Holding S.A. and White Star Real Estate also own land in the region. Prognosis Supply Demand Vacancy Rents 46 Industrial Market Market Insights 2016 Bydgoszcz and Toruń Colliers International

47 Bydgoszcz and Toruń Industrial Parks 1. Panattoni Park Bydgoszcz 4. Goodman Toruń Logistics Centre 2. Waimea Logistic Park Bydgoszcz 5. Panattoni Park Toruń 3. Logistic & Business Park Bydgoszcz 6. Diamond Business Park Toruń 47 Industrial Market Market Insights 2016 Szczecin Colliers International

48 Szczecin Distance from Szczecin to Polish borders 2015 year-end review Szczecin is located on the western border of the Zachodniopomorskie Voivodeship in the north-western part of Poland. The region ranks 11 th in terms of the amount of regional GDP in the country. The city is located near Polish- German border and is an important industrial as well as cultural and academics centre in the region. The port complex formed by Szczecin and Świnoujście is one of the largest transport hubs on the Baltic Sea coast. > Existing industrial parks are situated on the city s outskirts, next to the the S3 expressway, which leads to the airport in Goleniów. Source: Colliers International > The airport and rail cargo terminals are 10 km and 50 km respectively from the centre of Szczecin. > The port complex, which is located in the central part of Szczecin in the Śródmieście district, is 69 km away from Pomorska Bay. > Szczecin is connected by motorway with Berlin (140 km) and by the S3/A2 express route with Poznań (265 km). POPULATION 407,180 UNEMPLOYMENT RATE 6.8% 4, PLN AVERAGE MONTHLY GROSS SALARY 48 Industrial Market Market Insights 2016 Szczecin Colliers International

49 Demographics Szczecin is the biggest city in the Zachodniopomorskie Voivodeship and the 7 th city in Poland in terms of population. 62.7% of working residents are employed in services, 29.1% in industry and 8% in agriculture. > 63.8% of the population in the voivodeship are in productive age (Szczecin 62.6%). > Residents with higher education (28.4%), basic vocational education (26.5%) as well as post-secondary and secondary education (25.8%) are predominant among the economically active population in the voivodeship. Szczecin is an important academic and cultural centre. There are 14 higher educational institutions in the region of the city (19 in the voivodeship). > There are approximately 42,100 students in total in Szczecin. > Almost 10,900 students graduated in > There are 37.6% of students attend universities, 27.8% technical universities. > 6,100 students attend technical schools. Special Economic Zones Euro-Park Mielec, Pomeranian and Kostrzyńsko-Słubicka Special Economic Zones operates in the region of the city. > A total area of approximately 5,404 ha. Infrastructure Szczecin is crossed by 6 regional and national roads and 21 railway lines. > The A11 motorway connects Szczecin with Berlin (140 km). > The S3/A2 route connects Szczecin with Poznań (265 km). > 168 km of new expressways and motorways are planned. > Easy access to the air and rail cargo terminals and seaport. 18,000 16,000 14,000 12,000 10,000 Students and graduates by school type in 2014 Source: Advisory Group TEST Human Resources based on CSO for Szczecin, March ,000 6,000 4,000 2, ,824 4,319 11,703 2,547 1, ,102 1,196 Foreign language knowledge among graduates at an intermediate level (B1) in the Zachodniopomorskie Voivodeship in % 17.4% Source: Advisory Group TEST Human Resources 2015, carried on 46,593 observations, people aged 25-40, with at least bachelor degree Transport infrastructure in the Zachodniopomorskie Voivodeship (km) Current state Planned till 2020 Total 13,790 no data Expressways students graduates 0.9% 3.9% % Motorways 25 0 Cargo Airport Cargo Train Station Seaport Source: Colliers International, based on GDDKiA, March Industrial Market Market Insights 2016 Szczecin Colliers International

50 Supply and vacancy In 2015, the industrial stock in the Szczecin market increased by over 70,000 m 2. > 3 new projects are responsible for the level of new supply two warehouses in North-West Logistic Park (Waimea Holding S.A.) totalling 42,600 m 2 and a warehouse in Prologis Park Szczecin I (27,600 m 2 ). > 3 industrial projects of 32,000 m2 are under construction 2 industrial projects in the new Panattoni Park Szczecin (27,400 m 2 ) and another one which belongs to North-West Logistic Park (4,600 m 2 ). > Currently, the total industrial stock amounts to 143,500 m 2. The vacancy rate at the end of December stood at 5.8%. In the corresponding period in 2014 all space was totally leased. Demand In 2015, the level of demand in the Szczecin market was over three times higher than that recorded in the previous year. An increase in interest for industrial space in the region has been noted and new agreements constituted the majority of transactions. m 2,000,000 1,500,000 Supply and vacancy rate in ,000, ,000 0 Supply Vacancy rate Leasing agreements structure in % New deals 2 Renegotiations Expansions 69% 1 8% 6% 4% 2% > 116,100 m 2 leased in > 18 signed agreements. Business sectors In 2015, in the Szczecin market there was wide diversity in tenant activity. The predominant sector in terms of new agreements signed in 2015 was the retail sector 31% (production stood at 17% of leased area within new agreements). The structure of main business sectors in 2015: Main business sectors in % 2 15% 1 5% E-commerce 3PL Production Retail > 24,300 m 2 leased in the retail sector, 16,000 m 2 in the production sector, 15,600 m 2 of the 3PL sector. Rental rates The minimal effective rental rates for modern industrial space in the Szczecin region decreased in H from EUR 2.8/m 2 to EUR 2.4/m 2. > The effective rental rate in the Szczecin market at the end of 2015 fluctuated in the range EUR/m² Effective rental rates (EUR/m 2 ) 50 Industrial Market Market Insights 2016 Szczecin Colliers International

51 Developers and investors present in the market In 2015, the Szczecin market was still dominated by Prologis and Waimea Holdings S.A. In the coming quarters this will change due to the fact that a new developer Panattoni is entering the market. Developers and investors in the Szczecin market (Q4 2015) > Industrial projects by Panattoni and Waimea Holding S.A. are under construction. 56% 44% Prognosis Supply Demand Vacancy Rents 51 Industrial Market Market Insights 2016 Szczecin Colliers International

52 Szczecin Industrial Parks 1. Waimea Logistic Park Port Morski Szczecin 3. Panattoni Park Szczecin 2. North West Logistic Park 4. Prologis Park Szczecin 52 Industrial Market Market Insights 2016 Salaries within the sector Colliers International

53 Salaries within the sector MAZOWIECKIE Production Logistics Quality Q1 Q3 Q1 Q3 Q1 Q3 Manager 5,700 9,100 5,900 9,100 6,500 9,800 Foreman 4,900 7,000 4,800 6,500 5,100 7,100 Specialist 4,300 6,100 3,900 5,500 4,500 6,800 > The spread of salaries for managerial positions has grown further in comparison with the previous year. In all analysed areas the average difference between the first and the third quartile was of 3,000 PLN. > The remuneration of managers in production area, quality and logistics are highest in the Mazowieckie, Śląskie and Wielkopolskie voivodeships. At the same time, the lowest salaries are in the Kujawsko-Pomorskie and Zachodniopomorskie voivodeships. > A geographical distribution of salaries at foreman level looks similar. However, it is worth noticing that foremen in the Łódzkie Voivodeship are paid lower salaries too. > Despite the fact that the salaries of specialists are much more equally distributed throughout the country, slightly higher salaries are paid in the Kujawsko-Pomorskie Voivodeship. > The average nationwide difference between the salaries of team leaders and regular employees is 780 PLN. Higher than average disproportions are noticeable in the Małopolskie, Śląskie and Dolnośląskie voivodeships. It means that a change in position from a physical worker to a team leader will lead to the highest wage increase for employees in the southern part of Poland. Team leader 3,400 4,600 3,500 4,300 3,900 5,200 Physical worker 2,800 3,800 2,800 3,600 2,800 4,100 ŚLĄSKIE Production Logistics Quality Q1 Q3 Q1 Q3 Q1 Q3 Manager 6,000 9,400 6,200 9,300 6,400 9,400 Foreman 5,000 6,400 4,300 6,600 4,800 6,800 Specialist 4,100 5,900 3,500 5,400 4,100 5,700 Team leader 3,600 4,900 3,400 4,700 3,800 4,500 Physical worker 2,700 3,800 2,900 4,000 2,700 3,700 ŁÓDZKIE Production Logistics Quality Q1 Q3 Q1 Q3 Q1 Q3 Manager 5,700 9,200 5,400 8,400 5,800 9,100 Foreman 4,700 5,900 4,600 5,700 4,900 6,000 Specialist 3,700 5,600 3,800 5,100 3,900 5,500 Team leader 3,300 4,200 3,100 3,900 3,400 4,000 Physical worker 2,500 3,700 2,300 3,600 2,600 3,600 WIELKOPOLSKIE Production Logistics Quality Q1 Q3 Q1 Q3 Q1 Q3 Manager 6,000 9,200 6,000 9,300 6,900 9,900 Foreman 4,900 6,900 4,900 6,700 5,000 7,000 Specialist 3,800 5,700 4,000 5,500 4,300 6,000 Team leader 3,200 4,200 3,700 4,700 3,300 4,500 Physical worker 2,500 3,600 2,700 3,900 2,500 3, Industrial Market Market Insights 2016 Salaries within the sector Colliers International

54 The most frequent employee benefits Benefits Occurence (%) External trainings 65 Sport activities subsidies 47 Educational subsidies - studies, MBA, language courses, etc. Additional insurances Subsidised meals Vouchers Subsidies for cultural and entertainment goals Additional health care benefits for employees Mobile phone Subsidised commuting Laptop > Employee benefits are offered more frequently in production and logistic companies. Employees receive external training financed by the company and educational subsidies (higher education, language courses). > More and more employees also receive subsidies for sports activities. 47% of employees (6% more than in the previous year) received this benefit in > A rapid growth of interest is noticeable in the case of additional insurance. About 14% more employees received this in > Among the remaining employee benefits, no greater changes have been noted. 29% of employees receive company vouchers and subsidies for cultural and entertainment events. About a quarter receive a subsidy for additional health care benefits. > Benefits treated as work tools are at a similar level as in previous years mobile phones and laptops. Their low percentage is linked to a fact that these benefits are characteristic for higher level managerial staff, which constitute a small percentage of the research sample. > Still the most rarely occurring benefits are company cars and long-term benefits (e.g. share options) approximately 2% of employees receive them. Housing allowances also occur only rarely, with one in a hundred employees receiving them DOLNOŚLĄSKIE Production Logistics Quality Q1 Q3 Q1 Q3 Q1 Q3 Manager 5,500 8,900 5,700 8,900 6,400 9,500 Foreman 4,500 6,100 4,100 5,900 4,700 6,500 Specialist 3,800 5,500 3,600 5,300 4,000 5,900 Team leader 3,500 4,800 3,200 4,600 3,300 4,100 Physical worker 2,500 3,600 2,200 3,500 2,300 3,700 POMORSKIE Production Logistics Quality Q1 Q3 Q1 Q3 Q1 Q3 Manager 6,300 8,800 5,700 8,900 6,300 8,900 Foreman 5,100 6,500 3,800 6,000 5,000 6,700 Specialist 3,800 5,700 3,600 5,300 3,700 5,800 Team leader 3,800 5,000 3,400 4,500 3,700 4,900 Physical worker 3,100 4,100 2,400 3,500 2,900 4,000 MAŁOPOLSKIE Production Logistics Quality Q1 Q3 Q1 Q3 Q1 Q3 Manager 6,000 9,000 6,000 9,200 5,800 8,700 Foreman 4,800 6,200 4,500 6,200 4,700 6,600 Specialist 4,000 5,600 3,800 5,500 4,100 5,900 Team leader 4,000 5,000 3,600 4,500 3,400 4,300 Physical worker 2,700 3,900 2,400 3,200 2,600 3,800 KUJAWSKO- POMORSKIE Production Logistics Quality Q1 Q3 Q1 Q3 Q1 Q3 Manager 5,100 8,600 5,000 7,800 5,500 8,500 Foreman 4,400 5,300 3,400 5,500 4,500 5,900 Specialist 3,300 4,500 3,200 4,600 3,100 4,700 Team leader 3,100 4,100 2,700 3,300 2,800 3,400 Physical worker 2,300 3,500 2,100 2,700 2,200 2,800 ZACHODNIO POMORSKIE Production Logistics Quality Q1 Q3 Q1 Q3 Q1 Q3 Manager 5,100 8,700 5,200 7,900 5,600 8,800 Foreman 4,300 5,400 3,600 5,600 4,600 5,800 Specialist 3,500 4,900 3,200 4,900 3,300 5,000 Team leader 3,300 4,400 3,100 3,800 3,000 3,700 Physical worker 2,400 3,800 2,200 3,100 2,400 3,100 Source: Advisory Group TEST Human Resources, March Industrial Market Market Insights 2016 Salaries within the sector Colliers International

55 Contacts Tomasz Kasperowicz Partner Director Warsaw Maciej Chmielewski Partner Director Warsaw Maciej Cieliczko Associate Director Warsaw Grzegorz Paluch Associate Director Warsaw Jan Barbasiewicz Associate Director Warsaw Paweł Nosal Associate Director Warsaw Łukasz Grupa Senior Associate Warsaw Krzysztof Kienorow Senior Associate Warsaw Szymon Gasparski Associate Warsaw Łukasz Pańczyk Associate Warsaw Research and Consultancy Services Dominika Jędrak Director Warsaw Research and Consultancy Services Norbert Kowalczyk Junior Analyst Warsaw Industrial Market Market Insights 2016 Salaries within the sector Colliers International

56 Advisory Group TEST Human Resources TEST is a consulting firm with over 25 years of experience. It supplies high-quality HR services to international corporations and business in the Polish market through five specialised business lines: TEST Executive, TEST Recruitment, TEST Consulting HR, TEST Training & Development, TEST Salary Survey. TEST has supported the creation of several modern production centres (greenfield) in the south of Poland by staffing over 3,000 positions managers and highly qualified specialists. Apart from a recruitment department, TEST provides its clients from the production sector with HR consulting services: Assessment Centre, Development Centre, periodical assessment system, employee satisfaction assessment and other services. Since 1999, TEST has published the largest Polish Salary Report as well as other regional and business sector reports, including for the production sector and the automotive sector. In addition, TEST creates and implements an effective remuneration system. RECRUITMENT DEPARTMENT Łukasz Pich Business Development Manager lukasz.pich@testhr.pl Tel.: Tel. kom.: CONSULTING DEPARTMENT Agata Broś Senior Project Manager & Development Coordinator agata.bros@testhr.pl Tel.: Tel. kom.: SALARY ANALYSIS AND REPORT DEPARTMENT Maria Krawczyk Senior Consultant maria.krawczyk@raportplacowy.pl Tel.: Tel. kom.:

57

58 FIND THE PROPERTY YOU NEED OUR SEARCH TOOLS OUR KNOWLEDGE YOUR NEW BUSINESS PREMISES Map of high streets and shopping centres Find your new office Find your new warehouse

59