Number of warehouses record grows
Number of warehouses record grows.
S.A. Ricci estimates 700,000 sq m of storage space was commissioned in H1 of 2014. The growth more than twice exceeded a similar figure for H1 of 2013 and represents a new record since 2007. The supply swelled mainly due to large A-class properties (90%). Given that the commissioning deadline on a number of projects was pushed back, the delivery of more than 600,000 sq m of new storage space is scheduled for H2, so the probability is high that the annual growth of warehousing areas will reach the pre-crisis level of 1.3m sq m recorded in 2007. The absorption volume in H1 of 2014 reached 580,000 sq m, which is comparable to the similar figure for 2013 (588,000 sq m). As noted by Dmitry Gerastovsky, director of logistics property department at S.A. Ricci, more than half of the total demand for storage space was generated by retail (35%) and logistics (30%) operators. The rates did not change substantially on the warehouse market, at that: the average weighted rate for A-grade warehouses was at the level of $135/sqm/year and for B-grade storage facilities -- $125/sqm/year. This is comparable with the rates in 2013. Source: S.A. Ricci