Warehouse market H1 2021
Offer
In H1 2021 market of quality industrial and warehouse real estate in St. Petersburg was replenished with 15 complexes with a total area of 139,000 sqm, which is 4 times higher than the indicator of H1 2020. By the way only two introduced complexes with a total area of 17,400 sqm, are speculative offer. The remaining projects were implemented according to the built-to-suit scheme (87%).
The main increase occurred due to the commissioning of distribution center of the retail operator FIX PRICE at PNK Park Sofiyskaya-Ring Road and the industrial complex of the VOSHOD soft drinks production.
In the end of H2 2021 it is expected to put into operation about 316 ths. sqm of warehouse real estate. 80% of the 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 almost double the final figure of 2020. Projects announced for commissioning: Osinovaya Roscha stage 5, Armada Park Sever, Rusich Shushari, Trodex Logistic, Novoselye stage 2 , Ahlers stage 3.
Demand
In H1 2021 demand of quality industrial and warehouse real estate was 11% lower than the same indicator in 2020.
The gross volume of transactions in industrial segment for H1 2021 amounted to at least 270 ths sqm. Main tenants were companies in the retail and distribution segment (51%).
53% of the premises were rented. There was no deal on the St.Petersburg market in terms of built-to- suit scheme during half of the year.
Vacancy
A slight increase in new speculative supply and high level of demand support the acute shortage of high-quality space on the industrial real estate market of St. Petersburg.
According to Maris analysts, the amount of vacant space on the market has remained at minimum level for more than four years. At the end of June 2021 0.6% of class A buildings are vacant (−0.7 p.p. in relation to the final indicator of 2020). 2.3% are free in class B warehouse complexes (−2.4 p.p. compared to December2020).
In total, according to the results of H1, about 39 ths. sqm are available on the market of high-quality industrial and warehouse real estate (about 1.1% of the gross volume of supply).
Rental Rates
Increase in asking rental rates continued on the market in Q2 2021. By the end of six months growth of class A and B asking rental rates made up to +2.9%. The average level of rental rates amounted to RUB 470-680 per sqm, inclusive of VAT and operating expenses. Utility charges are paid on the basis of actual consumption.