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CBRE reports 33% demand YoY growth for warehouse space in the regional warehouse markets

CBRE Research team in Russia issued 2017 Russia Regional Industrial Big Box MarketView.

According to the report, the total of 2017 demand for warehouse space on the regional warehouse markets amounted to 553,000 sq m, representing a 33% growth YoY. 71% of take-up is attributable to large federal retail companies, actively expanding their presence on the regional markets. FMCG & Food prevailed in take-up structure by goods type.

Given the deficit in large warehouse space and strong demand dynamics, growth in rental rates on certain regional markets is possible. 

Anton Alyabyev, Director of Warehouse & Industrial Department, CBRE in Russia said: “In 2018, we expect an increase of interest in regional projects from both major federal and local developers. This will be reflected in new development, as well as the resumption of speculative construction in the markets with the largest deficit in quality warehouse space. Taking into account the stability of demand and overall demand for high-quality warehouse real estate in the Russian market, we expect to see a large number of transactions and a further increase in the importance of the regions as logistics hubs.”