Luke Dawson - Managing Director & Head of Capital Markets, CEE
The Industrial&Logistics (I&L) property sector has risen out of the shadows over the last few years to become one of the most dynamic and strategically important sectors in our economies and the commercial real estate sector, on a global basis. The I&L sector is by no means a new kid on the block and for people outside of this industry, it may well largely go unnoticed as products and services are seemingly magically produced and appear in shops and on our doorsteps. Behind the scenes, there is of course a gigantic sector made up of manufacturers, suppliers, retailers, 3PLs, distributors, storage and supply chain companies to name just a few, and they literally touch any business or industry sector that you can possibly imagine. In addition to that, there are several highly experienced, global, regional and local investors and developers that provide the lion’s share of the properties to make all this possible.
In this report, we look at how the I&L sector has developed in the geographically and macro-economically strategic region of Central&Eastern Europe (CEE). We will also touch on some of the trends facing the sector, both from a property point of view, as well as from occupier and consumer led standpoints. Together with our partners, we also provide valuable insight into important location selection decision-making criteria around labour markets, tax and incentives offered to investors considering this region.
This report covers a range of topics across 17 countries in the wider CEE region and as a result, we have close to 100 pages of insights to share with you. Therefore, we would not expect you to consume this all in one sitting and we hope this will be a useful tool longer term as you review the opportunities in this great region. Last, but not least, you cannot ignore the elephant in the room that is COVID-19. This pandemic that we are still very much in, has only confirmed the strategic importance and need for this sector in uncertain times, but has also highlighted some areas for reflection. We hope you find this report useful and, whether you are an investor, developer, occupier or other interested party in the I&L sector, we look forward to discussing your outlook and plans with you further.
CMS and Sorainen
Lukas Hejduk - Partner, Head of CEE Real Estate
Over recent decades, countries in the wider Central and Eastern Europe region have attracted significant levels of foreign investments. The well-educated labour forces and lower labour costs than in Western Europe, rapidly developing infrastructure with good transport links to the rest of Europe, tax exemptions and preferences for investors, are only some of the reasons why numerous companies have decided to open manufacturing facilities and distribution centres in CEE.
CMS and Sorainen have provided their collective knowledge and experience which is intended to help potential Industrial&Logistics investors understand what incentives are available when seeking to start operations in one or more of the 17 CEE countries covered in this report. As there are various levels of support across CEE, the following guide is presented in a country-by-country format. It is not meant to be comprehensive and gives more of a general, indicative picture. As laws and regulations can change quickly, it is vital to seek professional advice at an early stage if you decide to green light an investment.
Paweł Kopeć - Head of Enterprise Solutions Center
The CEE region has always been among the first destinations in the minds of foreign investors, from the production and logistics sectors, when looking for savings on personnel costs and availability of the workforce. Over the years, labour market conditions across the CEE countries has changed rapidly and, in some countries, unemployment rates have fallen below levels that anyone could have predicted a few years back, reaching natural unemployment rates.
Despite some of these factors, the CEE region remains very attractive and has a lot to offer. Not only there are differences in labour availability and costs between the various countries, there are also significant differences between specific counties and cities in the given country. New investors will of course tend to feel more secure locating their businesses in areas already explored by other companies, but those who take the risk and become pioneers in less industrialized areas, may well be rewarded with loyal personnel and less workforce shortages. In this report, we share our views on the various labour market conditions and trends across the region.