Class A Warehouses to Grow by End of 2012

Class A Warehouses to Grow by End of 2012

About 700 000 sq. m. of quality warehouses are to come into operation by the end of 2012 in Moscow region, says Vyacheslav Kholopov, Warehouse and Industrial Property Department Head at Knight Frank.

He estimates the supply in the Russian market of quality warehouses to be over 11.2M sq.m., most of which is clustered in the Moscow region – about 60% of the market.Vyacheslav Kholopov affirms that the capital and its region have about 6.68M sq. m. of A class warehouses.

According to his words, several projects will be developed along Maloye koltso (smaller belt highway) between Yaroslavskoye and Dmitrovskoye highways. He noted that the warehouse market could be ignited by eventual growth in retail, however, it is still to be awaited.

The expert estimates the Russian supply of low quality and non-classified warehouses to be over 5 M sq. m., but this figure is forecast to drop year by year.

Vyacheslav Kholopov believes that Russian regions can add 1.66 times more quality warehouse area in 2012 compared with 2011 – and hit the three-year record level of 250 000 sq. m.

Regional and large federal developers follow the capital’s trend and drive more active development of A class warehouses.

But in general, says Vyacheslav Kholopov, apart from several quality warehouse complexes, most regional markets are underdeveloped.