Greater Kyiv warehousing & logistics market heavily dominated by relocations
According to DTZ’s report, in January-September 2015, the occupier demand in the sector was heavily dominated by relocations with the intentions of existing tenants to obtain better lease terms and secure lower rental payments. In Q1-Q3 2015 DTZ Ukraine let 21 000 sq. m of warehouse space. Development activity during this period remained relatively low.
Supply
In late September 2015, total stock of modern warehousing and logistics space in the Greater Kyiv area amounted to around 1,778,000 sq m (GLA). This figure includes approximately 340,140 sq m (GLA) of modern specialized chilled frozen and chemical warehousing facilities.
Demand
The cumulative take-up in the warehousing and logistics sector in the Greater Kyiv area amounted to approximately 124,000 sq m (GLA) in January-September 2015, decreasing by around 20% compared to the figure registered during the first nine months of 2014, and being 64% lower than
in the respective period of 2013.
During the first half of 2015, net absorption, which reflects the real change in the amount of space occupied, reached around (-48,200) sq m (GLA), and its negative value indicates that during the period the occupiers in the sector tended to reduce area of units occupied by them. In the third quarter, however, the negative trend was reversed.