By KYIV. Nov 1 (Interfax-Ukraine) – The total supply of logistics real estate in the Ukrainian capital region increased by 3%, to 1.4 million square meters in the third quarter of 2022, according to the CBRE Ukraine warehouse real estate market review.
"In the third quarter of 2022, about 45,500 square meters of new facilities were put into operation, due to this, the volume of supply increased by 3% compared to the second quarter," Diana Kvitchuk, head of the marketing and research department at CBRE Ukraine, told Interfax-Ukraine.
At the same time, she clarified that the analysis excluded areas destroyed by the aggressors. But if the object is partially damaged, then it was taken into account.
According to CBRE Ukraine, commissioning of new large-scale facilities later this year is not expected.
At the same time, the volume of gross absorption amounted to 42,600 square meters, which is 34% less than in the second quarter.
Reportedly, half of this volume was the transaction for the lease of the Foxtrot retailer. In general, rental activity is mainly due to the rotation of existing companies from damaged warehouses, as well as those migrating from the eastern regions of Ukraine or returning to Kyiv from the west of the country.
At the same time, the vacancy continues to grow. As of the end of the third quarter, the average vacancy rate reached 6.8% (by 3.9 percentage points higher than in the second one), mainly due to the reduction of space by tenants who implemented cost optimization strategies.
Rental rates in national currency remained generally unchanged. Rates denominated in U.S. dollars fell as a result of the devaluation of the national currency by about 20% (prime to $4.1 per square meter/month).
It is noted that the devaluation of the national currency also affected the main terms of lease agreements, and the practice of setting rental rates in hryvnia has become more common. Also, landlords continue to offer special conditions and rental discounts to maintain occupancy rates, especially for existing tenants who may be considering relocation options. At the same time, the volume of conditions and discounts is very individual and depends on the size of the object, total vacancy, location and class of real estate.
CBRE Ukraine analysts note that the continuation of Russian military aggression in Ukraine and the existing level of risks in the region are unacceptably high for some tenants. Therefore, other regions are becoming priority locations for business migration.
Headquartered in Los Angeles, the USA, CBRE is the world’s largest commercial real estate consulting and investment company with $23.8 billion in revenue in 2020. According to the Fortune rating, it is included in the list of the 500 largest companies in the world (128th place in 2020).
