Moscow, 18 August 2017, - CBRE, global real estate advisor, indicated the key trends of the Russian regional Industrial and Logistics market for 2017.
New construction shrank to its minimum level over the last few years.
The largest construction levels were seen in Yekaterinburg, Perm, Artyom, where 30,000 sq m (DC X5 Retail Group), 25,000 sq m (PLK Yankovsky) and 24,000 sq m (DC X5 Retail Group) were delivered accordingly.
Distribution centers of large federal retailers represent 46% of new supply.
Amid the decline in new delivery, take-up increased by 23% compared to H2 2016. Most transactions in H1 2017 are lease agreements. More than 40% of demand represents 20,000 sq m buildings and larger space. The biggest take-up was seen in Yekaterinburg, Samara and Kaluga.
9 Russian regional markets were characterized by large (20’000 sq m +) warehouse spaces deficit.
Despite the deficit in the vacant warehouse space, rental rates are stable and demonstrate a moderate growth on specific markets.
Anton Alyabyev, Director of Warehouse & Industrial Department, CBRE in Russia, comments:
“We face a significant deficit of large warehouse spaces in key logistic real estate markets. It is mostly due to low speculative development levels observed over the last several years. At the same time, big federal companies form a consistent market demand on large warehouse spaces. We expect new interesting projects, both speculative and built-to-suit”.