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CBRE Research Department indicated the key trends of the Russian regional Industrial and Logistics market for Q3 2017

According to the report, construction activity remained relatively low. Given the number of facilities under construction, we expect total new supply to reach 443,000 sq m by the end of 2017, which accounts for only 65% of its 2016 value.

Anton Alyabyev, Director of Warehouse & Industrial Department, CBRE in Russia said: " “We observe a moderate but steady growth in demand for high quality warehouse space in the regions. Major companies lease and purchase warehouses to expand their logistics both on new and developed industrial real estate markets.

At the same time, supply deficit on key regional warehouse markets increases. Due to most new premises being pre-leased and low vacancy levels, it is difficult to find a warehouse facility available for lease or purchase. Given the current market conditions and demand potential, we expect increase in forward deals – pre-lease agreements and built-to-suit projects. These transactions will trigger future market growth”.