Results of Q1 in the warehouse segment: the vacancy is shrinking
Offer
In the Q1 2023, the level of development activity was significantly higher than in the same period of 2022. However, speculative projects accounted for only 30% of the gross input volume, and 70% of the new areas were built for the companies' own needs.
In the Q1, the market of high-quality warehouse real estate in St. Petersburg was replenished with 4 industrial and warehouse complexes with a total area of 35 thousand square meters, which is 7 times higher than in the Q1 2022.
In 2023, it is expected to put into operation about 475 thousand square meters of warehouse real estate. 55% of warehouse complexes planned for commissioning are speculative. Subject to compliance with the stated deadlines for commissioning, the total volume of the new speculative offer will exceed the final figure of 2022 by 38%. Taking into account the practice of the market, it is possible to postpone the commissioning of a number of objects announced for the current year.
Warehouse complexes put into operation, Q1 2023
|
Title |
Class |
Total area, sqm
|
Format |
|
Oktavian |
A |
10,500 |
Speculative |
|
The company LLC "ESM SI Pneumatic" |
A |
15,000 |
For own needs |
|
Оffice and warehouse complex, p. Novogorelovo |
B |
4 ,00 |
For own needs |
|
Warehouse complex, Kudrovo |
B |
5,500 |
For own needs |
|
Total |
|
35,030 |
|
Source: Maris
Demand
The gross volume of transactions in the St. Petersburg industrial and warehouse real estate market amounted to at least 217 thousand square meters in the Q1, which is 24% higher than in the Q1 2022 (including investment transactions for the acquisition of industrial and warehouse assets and transactions under the built-to-suit lease scheme).
The Q1 was characterized by an increase in demand from all sectors of trade and distribution. The demand for production and warehouse space from grocery and non-grocery retail has revived, which was completely absent in the Q1 2022.
The real sector also increased the volume of absorption: in the segment of the non-food sector, demand doubled relative to the indicator of the Q1 2022; demand from the food production sector amounted to 4% of the gross volume of transactions in the Q1 2023, while it was completely absent in the same period of 2022.
In Q1, the average size of the leased block was 5,200 sqm, which was 18% higher than in 2022.
Vacancy
The insignificant volume of the introduction of a new speculative offer and the growth in demand led to a reduction in the amount of vacant space on the market at the end of the quarter.
The volume of vacant space on the market remains at a low level and, according to data at the end of March 2023, the average vacancy rate was 1.6% (-1.1 percentage points compared to December 2022). In total, according to the results of the Q1, about 69 thousand sqm are available on the market of high-quality warehouse real estate.
Rental rates
In the Q1 2023, a reduction in the volume of vacant space and a slight increase in new speculative supply led to a slight adjustment in the requested rental rates. The average range of rental rates is 590 – 780 rubles / sqm per month, including VAT and maintenance payments. Utility costs are paid according to actual consumption.