Share of lease deals in I&L segment in the Moscow region reaches 100 percent in take-up structure – EuropaProperty

CBRE has summarized H1 2016 results from the Moscow Region Industrial Big Box Market. According to the report, the share of lease deals reached 100 percent in take-up structure – at the moment new warehouse buildings, at low prices, represent the most popular product on the market.

Take-up in H1 2016 totalled to 408,000 sqm, which is 13 percent lower than result of H1 2015. Though, overall business activity in I&L Market was much higher: alongside leasing of new premises many companies continue expanding their space within currently occupied logistic parks. Closure of a number of big deals is expected in H2 2016, as a result annual take-up may reach 1 million sqm.

Demand will be focused on immediately available buildings of the primary market. Based on low volumes of speculative development, volume of a vacant space will stabilize at current level that will allow keeping the rental rates unchanged

Anton Alyabyev, Director of Warehouse & Industrial Department, CBRE in Russia, said: “Ready-to-move-in warehouses are the top priority for tenants now. For such rapidly growing segments as large retail chains or e-commerce there is a great opportunity to start warehouse operations in a new building in a very short time. Despite high volume of vacant space in total, number of options suitable for allocation of large distribution centres is limited to several projects even now and will decline further along with demand activity.”