Ural Chamber of Real Estate: Yekaterinburg warehouse market to grow by only 5% by end of 2013

May 27, 2013. The developers grew more active in this market segment, too, as the economy started to cope with the recession. In 2011-2012, the amount of new warehouse space launched on the market every year became comparable with the pre-recession figures. Over 210,000 sq m worth of warehouse space became available in Yekaterinburg over the last two years. This year will most likely prove less productive. In the first quarter of the year, the market only increased by 0.3%. However, as many as 80,000 sq m worth of up-to-date warehouse space might be commissioned before the end of the year, which will increase the market by a further 5%, Ural Chamber of Real Estate’s Realtor Information Center’s Analytical Department reports.

Similarly to the shopping space segment, warehouse facilities are normally quickly taken up. Tenants are found for many of the warehouses even before they are launched. This is mainly true of the best quality and most logistically convenient facilities. In some cases, the warehouse management companies even have to create waiting lists, so the rotation takes only a few weeks in cases like this. As a result, about 99% of Class A and B+ warehouses are filled, and no more than 2% of Class B warehouses remain unused.

This means that the warehouse market rent rose back to its pre-recession level as early as the beginning of 2012 and has not changed much since then. As for Class A and B+ warehouses, rent comes to 415 RUR per sq m a month on average (this price includes VAT and O&M expenses); as for Class B warehouses, the monthly rate stands at about 345 RUR per sq m. The rent for low quality warehouses (Class C and D) is between 160 RUR and 290 RUR per sq m a month, which is not as much as in 2008, but still much more than in the last two years.

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