| 2016-02-08 | Kyiv warehouses cheaper than ever
UKRAINE In 2015 rents for warehousing space in the Greater Kyiv area hit historic lows in US dollar terms at the end of last year, according to the latest report by DTZ Ukraine.
Monthly asking rents were in the range of USD 2.5–5 per sqm for prime warehousing space, while for ‘B’ class properties the average monthly rent was at around USD 2–3 per sqm. Rents will remain subject to downward pressure during at least the first half of 2016. “The occupier demand in the sector has been dominated by relocations with a very few new entries and low expansion activity,” commented Fedor Arbuzov, the head of industrial and logistics property department at DTZ Ukraine. In 2015 the cumulative new supply reached app. 75,500 sqm gla, which comes to only app. 55 pct of the new supply delivered in 2014 and 2015. “All the new warehouses delivered in 2015 in the Greater Kyiv area were developed for owner-occupation purposes, as are all the new schemes scheduled for commissioning during 2016,” said Marta Kostiuk, the head of research and development consultancy at DTZ Ukraine. Primary vacancy stood at around 9.8 pct at the end of the year, while the cumulative net absorption rate was 21,000 sqm gla.