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Russia: Warehouse market of Yekaterinburg to start growing no earlier than 2011
03.09.2010 esmerk uutispalvelu
Commercial RealEstate, 27 Aug 2010, issue 16 p. 74

Members of the Urals logistics market assume that all A-class and B-class warehouses in Yekaterinburg will be filled before the end of this year. The industry will not start growing until 2011, when the consumer demand restores. Analyst of the Ural Chamber of Real Estate Guram Tukhashvili notes that the growth in demand for quality warehouses, observed since the end of 2009,
is based primarily on the reduction of rental rates during the crisis, on an average of 30%, from RUB 400 (EUR 10.17 USD 13.02) to RUB 270 (EUR 6.87 USD 8.79) per 1m2. Most of the deals in 2010 was related to the only large A-class warehouse in Yekaterinburg, Pyshma, of the company Eurasia Logistics. Virtually, all sectoral projects in the Urals Federal District are still frozen because of low demand. Now, main users of storage space in the region are retailers and distributors. Their activity depends on consumer demand, which so far is small. Construction of the third stage of Pyshma has been postponed. The new logistics centre of the company Rus is considering changing its format to the exhibition centre. The planned logistic park in the airport Koltsovo will not be in demand in the next year, year and a half, says Mr. Tukhashvili. Experts believe that old logistic projects will be resumed and new opportunities will not appear until 2011. Market players are confident that A-class warehouses will be the most popular due to lower prices during the crisis.

© Esmerk