NIKOLSKOE WAREHOUSE TENANT DELOVYE LINII RECOGNIZED AS LEADER BASED ON STORAGE SPACE VOLUME
In 2016, the company Delovye Linii managed 445,000 sq. m. of storage space, and by mid-2017, this figure had already risen to exceed 560,000 sq. m.
The transport company's high status was confirmed by experts from the consulting company Knight Frank.
Delovye Linii rents most of its warehouse space in the Central Federal District: 55 terminals with a total area of 207,560 sq. m. In second place is the Volga district with 29 warehouses equaling 89,000 sq. m. When it comes to selecting a warehouse, Delovye Linii mentioned the importance of multilevel ramps to speed up the loading and unloading process, as well as the number of gates, which helps to reduce cargo delivery time. Experts from Delovye Linii noted that it can be problematic to find decent warehouses outside major cities that can still meet a transport company's needs. In small towns, it is often necessary to rent either parts of old facilities or "unique" sites in the Built-To-Suite format, as constructed by local companies.
According to Delovye Linii's projections, the trend of declining storage area that has formed in recent years will continue in 2017. Approximately 65% of new facilities will be designed in the Built-To-Suite format.
"The annual rate for new proposals is expected to reach 500,000-600,000 sq. m. The main demand for warehouse space will be from major national retail companies. Most likely, the second half of 2017 will be marked by positive market dynamics against the background of a gradual reduction in the number of available units and a growth in rental rates," noted Mikhail Petrov, Director of Shipping for Delovye Linii.
Maksim Zagoruyko, the Director of the Department of Warehouse and Industrial Real Estate for Knight Frank, said: "Now, when cost management effectiveness is the cornerstone of business, outsourcing logistic processes is again becoming popular in the market. When considering the very high cost of modern technological equipment and IT systems, the price of failure has risen as never before. Therefore, many companies are once more relying on professional logistics operators for their storage operations. But it is not enough to simply store and process goods in a warehouse; clients want door-to-door service, including delivery and working with final purchasers. Thus, in the next year or two, we expect to see an active development of 3PL services in the market and a corresponding increase in logistics operators among consumers of high-quality locations."