IPSOS: 59% of enterprises report increased sales in Q1 2021

The results of the IPSOS survey commissioned by Frontier Estates Polska, in cooperation
with the publisher Europaproperty.com, carried out among entrepreneurs, investors and
professionals on the real estate market clearly confirm the trend observed for some time
in the warehouse space segment. More than half of respondents expect a dynamic increase
in demand in the category of urban logistics and see the greatest potential in small
warehouse spaces, such as Small Business Units, located in cities.

• 59% of surveyed entrepreneurs report an increase in sales in the first quarter of 2021 compared
  to the same period last year, only 11% declare that the turnover has decreased or significantly
  decreased. 32% indicate a disruption of the supply chain due to the pandemic, and 25% of those
  polled intend to reduce spending due to economic uncertainty. 21% of respondents point to the
  problem of late payments, which they observed in the first quarter of this year – says Krzysztof
  Chmielewski, Research Director at the Institute of Opinion Research IPSOS.

At the same time, two thirds of respondents, mainly from the e-commerce, wholesale and light
manufacturing industries, believe that the lack of availability of adequate warehouse space
limits the possibility of their business growth.

The survey results show an absolute focus on urban projects related to last mile logistics. As
many as 90% of respondents believe that over the next two years, the location of warehouse
space close to end customers will be of key importance when choosing a place to run a business.
79% of real estate professionals and entrepreneurs believe that in the next five years, the
warehouse infrastructure will come closer to cities.

Nearly 50% of respondents consider the possibility of integrating their office with a warehouse
or production zone and showroom as important, which may allow the tenant to use the space
efficiently, significantly reducing some operating costs. Majority of respondents indicate the
availability of broadband Internet, warehouse automation and technical infrastructure as very
important in the decision-making process about choosing a warehouse and distribution center.

• Growth in the city logistics segment will be driven by a very high demand for modern space
  from small and medium-sized enterprises. On the other hand, the supply of this type of facilities
  will be increasingly difficult due to the growing restrictions in the availability of investment
  land and competition from residential and commercial developers who are looking for locations
  with similar parameters and thus compete for them – says Daniel Oponowicz, Commercial
  Director at Frontier Estates Polska.

• According to the respondents (66% of responses), the availability of employees close to the
  planned warehouse and logistics investment is very important. 61% of the surveyed
  entrepreneurs intend to change and adapt their existing warehouse space to new customer
  requirements, 51% intend to improve productivity. 23% of respondents plan to expand or
  change the existing warehouse space, which shows caution in making far-reaching financial
  decisions in the current economic situation, despite good forecasts for the future – says
  Krzysztof Chmielewski.

• We have been investing in city logistics for many years on the British market. Our investments
  can act as multi-channel points of contact with customers, serving as collection and return
  points, showrooms, warehouses, small logistics centers and high-class offices. The first SBU
  investment of Frontier Estates Polska, located in Bielany Wrocławskie, is currently in the
  commercialization phase. Frontier Park Wrocław will include 12 units on approx. 9,300 m2 of
  flexible warehouse and business space with a glazed front elevation, enabling it to serve as an
  exhibition and office space, says Daniel Oponowicz.

Research record

The survey was conducted in Poland by the IPSOS Opinion Research Institute on 4-14 May
2021, using the CAWI method, on a representative sample of 116 companies from the real
estate, e-commerce, light manufacturing, trade and warehouse logistics sectors.