Szczecin attracts investors

99.3% of Szczecin's modern storage space continues to be rented. This is Poland's second best figure, shows "Kurs na Szczecin" (On course for Szczecin), a report prepared by Colliers International for the Szczecin Metropolis Development Agency (ARMS).

The idea behind the report delivered by Colliers was to analyse the current situation on the office and storage property market in the capital city of the Westpomeranian Region, and to identify its growth prospects. This publication might help future investors make informed decisions to set up their businesses in Szczecin.

The growing potential of storage

The report shows that at the end of Q3 2020, the total supply of modern storage space in Szczecin was 762,000 square metres, making the region rank 7th in 11 major storage markets in Poland. In late September 2020, projects that were underway included those by 7R Logistics (30,100 m2 of BTS storage) and by Hillwood, a new company on the Szczecin market (4,900 m2), as well as next stages of such projects as Panattoni Park Szczecin Goleniów (9,900 m2) and Exeter Park Szczecin II (19,600 m2). As much as 65% of this new storage space has already been rented. Plans for 2021 include such projects as  7R Park Szczecin (60,200 m2), next stages of Panattoni Park Szczecin Goleniów (39,900 m2), and Panattoni Park Szczecin I (42,100 m2).

"What makes Szczecin unique in Poland is its low percentage of vacant offices (0.7%). Major companies that have launched their operations here include Amazon, with its e-commerce centre, and Zalando, with its distribution centre. Some of the other businesses that have decided to rent space in Szczecin's warehouse parks are  DHL, Rhenus, Momox, Mycs, IKEA, Carlsberg, InPost, AUTODOC Logistics, IQ Metal and KION Group. The industries with largest market share are 3PL, light industry, and e-commerce, which in 2018 accounted respectively for 16%, 13%, and 12% of the rented storage space," says Maciej Chmielewski, Senior Partner, Director of the Industrial and Logistics Agency, Colliers International.

Offices primarily for IT

In late Q3 2020, there were 185,000 square metres of office space available to tenants across 38 existing projects, of which 7 had been opened for use over the previous three years. The year with record supply was 2019, which saw the completion of 5 projects which added 21,300 square metres to the local office market. Szczecin's top office buildings with more than 10,000 square metres of office space include Posejdon (18,070 m2), PAZIM (14,700 m2), Oxygen (13,130 m2), Lastadia Office (11,530 m2), and Baltic Business Park C (10,850 m2).

Szczecin is a leading business service hub in Poland. ABSL has estimated that just over the last 3 years, the employment in this sector has grown by 47%, and the sector itself rents as much as 22% of all rented office space. But the undisputed leader among the renters is the IT and ICT sector, with a volume share of 46% in 2019. Companies that have decided to locate their outsourcing (BPO/SSC) centres or offices in Szczecin include  Asseco Data Systems, Mobica and TietoEVRY.

What attracts investors?

"Szczecin and its local areas are very attractive for investments. This region is characterised by a well-developed and well-connected transport network for both domestic and international travel. And the City itself is an important economic and tourist centre," says Dominika Jędrak, Head of Research & Consultancy, Colliers International.

One of Szczecin's strengths, in addition to its location, is being situated within two Special Economic Zones operating under Polish Investment Zone. The former provides investment areas ready for development and special reliefs and personnel training financing for businesses interested in launching their operations in the region.

"The role of the Szczecin Metropolis Development Agency (ARMS) is to support investors and create a friendly business environment," says Marek Kubik, President of ARMS. "For this purpose, we have launched a wide range of services, such as assistance in finding the right property or personnel, and providing sureties. Our support helps companies acclimatise to the local market and solves many problems.

For the complete text of the report, please visit invest.szczecin.eu