Knight Frank: results from 2019 for the Moscow region warehouse market

The market has entered the stage of growth in rental rates.

Analysts at the international consulting company Knight Frank summarized the preliminary results of 2019 for the warehouse market in the Moscow region and prepared a forecast for 2020. Among the key trends are:

The share of vacant warehouse space has reached its minimum value since 2013 - 2.5%;

The demand for constructing proprietary warehouses more than doubled - up to 24%;

Against the background of a decrease in the volume of transactions in the Moscow region, a twofold increase in the regions of Russia is expected - up to 900,000 square meters;

The market has entered the stage of growth in rental rates.

According to preliminary results of 2019, the total supply on the Russian warehouse real estate market amounted to about 27.2 million square meters, of which 55% or just over 15 million square meters is located in the Moscow region. Over the year, the total supply in the metropolitan area increased by 6%.

This year, about 850,000 square meters of high-quality warehouse space were commissioned in the Moscow region, which generally corresponds to the values of 2018 (805,000 sq. m). At the same time, as in the previous year, we note that the share of speculative warehouses in the total volume of new construction is less than 50%, and according to preliminary data, 27% of the commissioned space is built for proprietary needs, and 29% is built-to-suit.