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Rental activity in logistics real estate market of Kyiv in 2022 amounts to 144,000 sq m – CBRE Ukraine

KYIV. March 16 (Interfax-Ukraine) – Rental activity in the logistics real estate market in Kyiv amounted to about 144,000 square meters, which is 16% less than in 2021, CBRE Ukraine reported.

“The liberalization of transport relations with the EU, the opening of European markets for Ukrainian goods and other EU initiatives have contributed to reducing tension in the sector,” said Natalia Sokyrko, the head of the warehouse and logistics real estate department at CBRE Ukraine.

According to the latest research by CBRE Ukraine, in the second half of 2022, the demand for warehouses was more active, but continued the trend of the first half of the year, where rental activity was mainly due to the rotation of existing companies from damaged warehouses, as well as companies that migrated from the eastern regions of Ukraine or returned to Kyiv from the western part of the country. In addition, gross absorption was supported by several expansion agreements, mainly from logistics and 3PL operators. As a result, activity in 2022 with a volume of about 144,000 square meters, which is 14% lower than in the pre-war 2021, was assessed by analysts as “healthy.”

The structure of gross absorption was dominated by the wholesale and retail trade sectors, as well as logistics and 3PL operators, their shares amounted to 51% and 35%, respectively.

In 2022, a small amount of new supply entered the market, represented by approximately 45,000 sq m of warehouse space, including RLC Logistics Center II (24,000 sq m) and two stages of the warehouse in Makariv (10,200 sq m and 11,300 sq m). Thus, in the second half of the year, the total volume of speculative supply increased slightly – by 3%, to 1.41 million square meters.

In 2023, about 110,000 square meters of new warehouses are expected to be commissioned. At the same time, 68% of the future supply falls on warehouse complexes built for own use, and only about 35,000 square meters of new space will enter the speculative market.

By the end of 2022, the average vacancy rate decreased to 4%. This decrease can be explained, first of all, by the continuation of forced demand from retailers and logistics operators against the backdrop of a reduction in the total volume of warehouse space.