The amount of deliveries of warehouse space in Moscow in Q4 2015 was only 129,000m² or almost five times less compared to the volumes over the same period last year (around 663,000m²), says JLL. The total volume of new supply of warehouse space in 2015 in Moscow Region was almost two times lower than in 2014.
In terms of geographic location, the biggest increase was seen in the southern and northern directions of Moscow Region with 27% and 19% share in the total amount of deliveries over 2014 respectively. Among the biggest deliveries in 2015 there were new premises in ‘PNK – Chekhov 3’ industrial park (102,000m² of warehouse space), ‘PNK – Bekasovo’ industrial park (71,000m²) on southern direction, ‘Kholmogory’ industrial park (phase I, 92,000m²) and ‘Logopark Sever – 2’ industrial park (24,700m²) on northern direction and ‘Kievskoye-22’ logistics park (phase I; 42,000m²) on western direction. As a result, the total stock of high quality warehouse space in Moscow region reached 12 million m².
“Most of developers are not ready to start speculative construction due to the lack of actual demand as well as considerable amount of vacant space on the market. A current low level of rents (nearly $50) for new warehouse space curbs development activity.” – Petr Zaritskiy, regional director, head of warehouse and industrial department, JLL, Russia and CIS, commented. – “Therefore, we will likely see further decrease in the amount of new deliveries in 2017-2018 period while the majority of future supply is represented by built-to-suit schemes, implying the construction begins only in case of actual demand for warehouse space.”
At the same time, demand for warehouse space in Moscow Region in 2015 saw a notable y-o-y surge – the volume of total transactions for warehouse space in 2015 totalled 1.3 million m², which represents an almost 40% increase compared to the levels of 2014.
