The State of Warehouse Real Estate


The modern warehouse market has remained the most stable sector of commercial real estate during the first half of the year. But what lies ahead? Office Life delved into the trends and market forecasts for warehouse logistics with Andrey Aleshkin, Partner and Executive Director of NAI Belarus.


Demand, vacancy rates, and rental rates in the warehouse market have remained steady.

The e-commerce sector continues to be the primary consumer of warehouse space. In the beginning of the year, major players in this market sought to expand their warehouse areas.

Vacancy rates were rotational in nature, with spaces being freed up by existing tenants and new spaces in recently completed buildings in 2022 being occupied.

Andrey Aleshkin explains, "The current situation in other key sectors actually favours the warehouse sector. Warehouse inventories have grown: as of June 1, they accounted for 76.6% of the average monthly production volume in the country, and a staggering 108.5% in Minsk. The transport turnover is only at 72.8% compared to the previous year. Conditions have become more challenging for Belarusian international road carriers, with Poland closing most crossing points and the southern Ukrainian direction remaining entirely closed."

While over 151,000 square meters of new quality warehouse spaces were introduced in Minsk and its suburbs in 2022, nothing new has emerged in the first half of 2023. Additionally, BaikalGroup, a company specializing in freight transportation between the EAEU countries and China, announced the construction of a transportation and logistics center (TLC) in the "Great Stone" industrial park. This is the second project of its kind in the park, as "Beltamozhservis" had previously announced the construction of a large-scale transportation and logistics center there last year.

The demand for warehouse space has remained stable and consistent for at least one and a half years. There is interest in warehouses of various sizes and functionalities. Notably, major players in the e-commerce market, including leading Russian marketplaces OZON and Wildberries, have been looking for sites to accommodate their sorting and distribution centers in 2023.

Rental rates in the warehouse real estate segment have remained unchanged and high for several years. Due to the active conversion of the rental rate market into the ruble, owners have suffered losses due to exchange rate differences, despite contract reviews and adjustments, as noted by the expert.

#WarehouseRealEstate #MarketInsights #NAIBelarus #Logistics #Ecommerce #CommercialRealEstate #Trends #News

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