The CEE region is already "core," says Carl Panattoni Courtesy of Konkret PR

Adam Zdrodowski: Panattoni has gained a strong presence in Central and Eastern Europe in recent years. How important is the region to you as a global provider of logistics space?

Carl Panattoni: It is of critical importance. I can’t think of any logistics center in which we develop that is more meaningful. CEE is the hub of both existing and future networks. I’d put it at the top now, and in the foreseeable years to come.

Are the CEE industrial markets “mature?”

Yes, I do consider the region to be “core” already, because of the locations it serves. Since the market is already mature, growth will be at a steady pace, rather than a dramatic rise.

The overall potential, however, is enormous. It’s the best of both worlds: maturity and growth. Over the next five years, I believe we will do more development in the CEE than in any other region in the world.

Panattoni has recently announced plans to enter the Polish retail sector. Is this something the company is doing in other countries as well? What is the rationale behind the move and which kinds of retail projects are you going to focus on?

We have experience in the retail property sector in other countries, especially in the US, but also in Italy.

In Poland, after a couple years of dynamic development in the industrial market, we have reached a point where our experience, resources and tenant base allow us to enter a new [but] similar real estate market. This is similar [to industrial development] in the types of locations – outskirts of cities – as well as the type of clients.

We will be initially focusing on retail parks with two to three tenants. We hope that, in the long-term, our operations in both segments can benefit mutually.

Source: Panattoni Europe

What are some of your investment plans when it comes to the industrial market in Poland?

We own a significant portfolio in all core regions in Poland and therefore our initial goal is to dedicate our time and resources to expanding these locations. At all times we are keen to pursue new BTS opportunities.

What’s more, we will consider selectively building speculative inventory in areas with low vacancy rates.

Congratulations, by the way, on your CEEQA Lifetime Achievement Award. How important is this distinction to you?

For 30 years, I’ve devoted my career to establishing and growing this company. Expanding it from a single asset to operations throughout North America and into Europe has been a very rewarding experience.

To see this hard work and integrity acknowledged by CEEQA makes this award extraordinarily satisfying. It is an honor that I did not expect.

WBJ is a media partner of the CEEQA event