baltic states and belarus real estate market review - Colliers

Real Estate Market Review 2011 | Belarus Industrial Market
Industrial Market
Sqm (000s)
Distribution of new
warehouses in Minsk and
Minsk Oblast by size
Source: National Cadastral Agency,
Colliers International
dynamics of modern
warehouse space in Minsk
and Minsk District
f - forecast
Source: Colliers International
400
350
300
250
200
150
100
50
0
4
17
74
2004
2005
2006
2007
2008
Total New Construction
Expected Construction
2009
36,600
16,200
6,200
Number of Units
GBA, sqm
0 - 5,000 sqm 5,000 - 20,000 sqm
20,000 and more sqm
2010
2011f
OVERVIEW
The industrial real estate market is the least
developed commercial real estate sector in
Belarus. 2010 was the year when
construction of modern warehouses
commenced. Pre-lease of some projects in
the completion stage started. Objects
commissioned in 2010 are mostly built-tosuit
projects (distribution and customs
warehouses).
SUPPLY
The majority of warehouse properties within
Minsk and Minsk region are old B, C and D
class buildings.
59,000 sqm of warehouse space entered the
Minsk and Minsk Region markets in 2010.
These figures include 30,000 sqm of high
quality (A and B Class) facilities - 52 per cent
new construction total volume. Notably
8,000 sqm of new warehouse facilities are
located in basements of new Minsk business
centres.
The Belarusian warehouse market till the
recent times has been characterized by a
prevalence of built-to-suit objects among
new constructions. The area of such facilities
is generally 2,000 - 5,000 sqm. Often
Belarusian companies that own warehouse
facilities sublease unused warehouse areas
to third parties.
Active growth of a number of Belarusian
companies, mainly in the retail sector,
required the construction of large distribution
centres with areas up to 25,000 sqm.
The image below shows modern warehouse
facilities and storage services (including
built-to-suit projects) available for lease
currently, and due in 2011.
Warehouses developers emerged only in
2007 and 2009 can be marked as the year
when the construction of modern warehouses
first started.
Projects completed in 2010 are mostly
built-to-suit facilities. Virtually all projects
announced to be commissioned in 2010 were
postponed to 2011. Completion of new
warehouses amounted to 42 per cent of the
total volume announced by developers.
Thus, taking into account projects that were
postponed in 2010, the total number of
warehouse projects planned for 2011 equals
11 with total area of 158,500 sqm.
The projects likely to be completed by 2014 in
the Minsk and Minsk area amount to more
than 590,000 sqm. of warehouse space.
Modern warehouse complexes commissioned in 2010
Source: Colliers International
Location Developer Type GBA, sqm
Minsk District Beltamozhservis Warehouse complex 5,000
Minsk District FK "Euroopt" Warehouse complex 25,900
Total 30,900
Modern warehouse complexes announced for completion in 2011
Source: Colliers International
Location Developer Type GBA, sqm
Minsk District BLT-Logistic Logistic Centre 43,400
Minsk District Kayson (Prilesie) Logistic Centre 33,000
Minsk District Dvadcat' Chetyre (24) Logistic Centre 18,100
Minsk Oblast BelVinges Logistic Logistic Centre 16,300
Minsk n/a Warehouse Complex 10,500
Minsk District ACE Warehouse Complex 10,200
Minsk JA invest Warehouse Complex 6,400
Minsk n/a Warehouse Complex 5,600
Minsk Belstroyresurs Warehouse Complex 5,200
Minsk Shate-M Warehouse Complex 5,000
Minsk Victoria Warehouse Complex 4,800
Total 158,500
CONTACTS: ANDREY PAVLYSHKO - a.pavlyshko@colliers.by l ANDREY ALESHKIN - a.aleshkin@colliers.by
Colliers International | p. 88