SUPPLY AND DEMAND
In 2020 new supply on the warehousing and logistics property market in the Greater Kyiv area reached 85,055 sq m, which was the record high level since 2014. In Q1 2021, there was no new delivery on the logistics and warehousing property market in the Greater Kyiv area, while during Q2 2021 new supply in
the sector amounted to 23,205 sq m and was formed by the later phases of the logistics complexes ‘FM Logistic’ and ‘Makarivskyi.
As of early July 2021, around 85,000 sq m of warehousing space is scheduled for completion by the year-end. The properties scheduled for completion include extensions to ‘Makarivskyi’ and ‘FM Logistic’ complexes, as well as a number of smaller warehouses, a majority of which are already pre-let.
During H1 2021, take-up in the sector amounted to almost 70,000 sq m, being 13% and 25% less compared to the figures in H1 2020 and H1 2019 respectively. At the same time, Cushman & Wakefield estimates that during H1 2021 net absorption in the warehousing and logistics property sector in the
Greater Kyiv area amounted to around 36,505 sq m, which accounts to around 70% of annual figure in 2020.
RENTS AND VACANCY
Due to the absence of new supply during Q1 2021, vacancy further decreased to 1.5% in late March 2021 compared to 2.3% at the end of Q4 2020. In Q2 2021, vacancy remained almost unchanged at around 1.6%, as both new properties delivered during the period were pre-leased and occupier demand in the sector was robust.
During H1 2021 prime rents were subject to further upward pressure. As of June 2021, in out-of-city locations base monthly rents for prime warehousing space in the Greater Kyiv area were in the range of $4.75-6.0 per sq m and $3-3.8 per sq m of B class properties, while for urban logistics properties in Kyiv
were reaching up to $7.5 per sq m per month.