baltic states and belarus real estate market review - Colliers

Real Estate Market Review 2011 | Belarus Industrial Market
Distribution of projects
planned for 2011 by area
Source: Colliers International
2
4
5
Warehouses demand
structure
Source: Colliers International
27%
20,000 and more sqm
28%
45%
48%
35%
17%
Number of Units
% GBA of Units
5,000 - 10,000 sqm 10,000 - 20,000 sqm
Food Goods Non-food Goods
Equipment and Materials
Rental rates dynamics in
Minsk
Source: Colliers International
DEMAND
During 1 HY 2010 the demand structure for
warehouses changed compared with 2009.
There were an increasing number of requests
for warehouses larger 1,000 sqm, but an
ongoing demand for premises below 150
sqm. This is primarily due to the rapid
development of retail and the appearance of
new players on the market. There was
demand from logistics operators who need A
Class warehouses to deliver storage and
logistics services. The largest players in
Belarusian retail NTS and RTL-Holding
develop their own facilities to provide storage
and logistics services.
Major Belarusian and international companies
tend to prefer new warehouse complexes
because of poor quality services provided by
old warehouses located in Soviet-era
industrial buildings.
Manufacturers, distributors and retailers
dominate in the demand structure.
There are companies on the market that
require warehouses with areas between
5,000 and 60,000 sqm. This is mainly
growing and larger companies that are
wishing to relocate from warehouses located
quite far away from each other or moving
from outdated buildings. According to Colliers
International, the total demand for modern
warehouses (including safe storage services)
at the end of 2010 exceeded 250,000 sqm.
RENTal RATES
Rental rates for high quality warehouses
within the city limits are 6 - 10 EUR/sqm/
month net of VAT. There are different forms
of payment for the warehouses: rents can be
calculated per sqm. or per pallet.
Due to a limited supply and a shortage of
quality areas the situation in the warehouse
market remains relatively stable in contrast
to the retail and office segments. The
extension of widening of rental rate range is
due to deepen due to the wide difference in
the quality of facilities on the market.
Lessors often conclude preliminary lease
agreements for warehouse premises under
construction with the reduction of face rents
of 10 - 20 per cent as loans have become
cheaper and total supply is increasing.
Currently, lease contracts are usually
concluded for 11 months with renewal for the
same time, due to further regulations
governing leases over 12 months. Utilities
and maintenance costs are paid by the tenant
in addition to rent rate depending on the
consumption.
VACANCY
The vacancy rate is relatively low due to
limited existing warehouse areas within the
city boundaries, and slow supply growth
amidst the growing activity of tenants.
12
Rental Rates (EUR)
10
8
6
4
2006
2007
2008
2009
2010
Class A
Class B
Warehouses rental rates
* - asking rental rates (EUR/sqm/month) excluding VAT
and operating expenses
- slight decrease
Source: Colliers International
Location Rates *
Trends for
2011
Minsk 3 - 10
Minsk District 2 - 8
CONTACTS: ANDREY PAVLYSHKO - a.pavlyshko@colliers.by l ANDREY ALESHKIN - a.aleshkin@colliers.by
Colliers International | p. 89