Warehouse supply to double in 2014

Among the major upcoming projects are new developments in PNK-Chekhov (139,000 sqm), South Gate IP (162,000 sqm), Synkovo LP (120,000 sqm), PNK-Northern Sheremetievo (174,000 sqm), Nikolskoe LP (106,000 sqm), Radumlya LP (100,000 sqm) and the second phase of Logopark Sever (100,000 sqm). “Almost all new warehouse space is typically pre-leased or sold before completion. The proportion of pre-leased and pre-sold space reached 90 pct in 2013 and BTS projects amounted to 35 pct of the total. This will grow to 37 pct of 2014 completions, as they were already contracted by the end of 2013,” comments Maria Lurye, an industrial research analyst at Jones Lang LaSalle in Russia and the CIS. Last year’s supply of 855,000 sqm was the highest since 2009. The fourth quarter of 2013 saw completion volumes reaching 200,000 sqm, representing a 62 pct increase y-o-y. The total warehouse supply currently amounts to 9.65 mln sqm with vacancy at around 1.4 pct. “Taking into account both the growth of future supply and a slight decrease in actual demand, we assume that the vacancy rate will reach 4 pct by the end of 2014,” predicts Petr Zaritskiy, the national director and head of the warehouse and industrial department of Jones Lang LaSalle in Russia and the CIS.