Market overview 2nd Quarter 2017: Warehousing Sector

Supply

  • By the results of the first half of 2017, the total size of the warehouse market remained stable on the level of 2.8 mln.sq.m
  • In the first half of 2017 the tendency of limited construction of speculative warehouses continued. Moreover, there is a decreasing activity on the built-to-suit market.
  • The distribution between speculative projects and warehouse complexes used for own needs maintained 55% and 45% respectively.
  • According to our forecasts, by the end of 2017 there will be 80 000 sq.m of new supply proposed to the market.
  • More than half of announced supply will be commissioned at the market with 100% occupancy.

Demand

  • Along with the reduction of share of new commissioned high-quality speculative warehouses, there is a continuous decline tendency in vacancy spaces.
  • Currently, the level of vacancy in high-quality warehouse complexes stays at 4.5%, by the first half of 2017 vacant spaces were contracted by 1.5%.
  • Demand structure did not significantly chanced. By the end of 2016, the companies in FMCG industry, whose share in total transaction volume exceeds 50%, remain active. Also activity growth was observed among manufacturing companies.
  • Logistics sector was the most active in the first half of 2017: several large deals were concluded.
  • Retail and manufacturing companies slightly reduce their activity.

Dynamics of the newly commissioned premises

The structural demand according to the tenant industry

Rental rates

  • For July 2017 the rental rates for high-quality warehouses in ruble equivalent are in the range of 4 000-4 100 RUR per sq. m. per year excluding VAT and operational expenses. They remained stable since the end of 2016.
  • Manufacturing companies consider rental rate not higher than 300-360 rubles per sq. m. per month, including VAT, meanwhile utility costs are paid separately.
  • According to the results of the first half of 2017, rental rates showed moderate growth in the range of 2-3% due to a shortage of speculative warehouse projects in the market.

Dynamics of rent rates and the vacancy

Trends and forecasts

  • By the end of 2017, the number of new speculative projects, launched on the market, is expected to be around 80 000 sq. m.
  • The number of plans for implementation of projects of high-quality complexes under the built-to-suit scheme is also being reduced.
  • Rental rates will be stable with moderate increase by 2-3%. The vacancy level will continue to decrease due to the reduction of number of new commissioned speculative warehouses.
  • Manufacturing companies and companies of FMCG sector are expected to reach the same level of demand for high quality projects as it was in 2016.

Owing to integration of a longstanding international experience, wide local partnership connections and cooperation with major international partners in Europe, we do not only set up-to-date trends and standards, but also offer to our clients beneficial solutions producing an unequalled effect and ensuring best results regardless of the task assigned to us – consulting and facility development or search for an optimum property option.

Requests (0)

FavouritesShow on map

Show on map

Close