- Demand for logistics real estate in 2021
- Which class of logistics properties was most in-demand in Ukraine?
- In which big cities of Ukraine were Class A warehouses popular?
- In which cities were Class B warehouses most frequently searched for?
- Demand for Class C warehouses in different cities
- The highest and the lowest rental rates for Class A warehouses
- What was the rental cost for Class B warehouses?
- How much did the Class C warehouse rental cost in Ukraine?
- Demand for outsourced warehousing services
- Requests for pallet storage popularity
- In which cities were warehouse services requested most frequently?
- Conclusions
The end of each year is a time to take stock. WareTeka has prepared analytics with infographics on the logistics real estate market condition and the demand for warehouse services in Ukraine.
In this article, you will learn which class of warehouses and in which cities were in demand, for which facilities were the highest and lowest rental rates, as well as where and when warehouse services were especially popular. The data presented in this article are WareTeka’s statistics gathered during 2021.
Demand for logistics real estate in 2021
In this part of the article, we analyzed the demand for warehouse facilities, which were the most popular this year. We also explored which warehouse classes were in demand in big cities of Ukraine, and compared rental rates for logistics real estate of different types.
Which class of logistics properties was most in-demand in Ukraine?
In 2021, “record holders” in demand became Class B warehouses: 51% of our customers selected these facilities. This can be explained by the fact that Сlass B premises have two important features: they meet modern warehouse logistics requirements, and their cost is often lower than the rental price for Class A facilities. Class C was ranked second — 36% preferred them. Class A warehouses were in demand among 13% of our customers.
In which big cities of Ukraine were Class A warehouses popular?
Class A warehouses were most in-demand in Kyiv — 55% selected these facilities. Such facilities were less popular in Odesa, Kharkiv, and Lviv — 14%, 13%, and 11% respectively. In Dnipro and other cities of Ukraine demand for Class A logistics real estate was 4%.
In which cities were Class B warehouses most frequently searched for?
Class B storage facilities were also demanded warehouse property in Kyiv. About 43% of our customers selected this option. Demand for such facilities in other Ukrainian cities was 19%. 13%, 9%, and 8% of clients were interested in Class B facilities in Kharkiv, Dnipro, and Lviv respectively. The less popular warehouses of this class were in Odessa — only 7 % selected such facilities.
Demand for Class C warehouses in different cities
Warehouses of this class were popular in other cities of Ukraine as well as in the capital: 28% and 26% respectively. Class C warehouse property in Dnipro selected 17% of our clients. 11% were interested in such facilities in Odesa and Kharkiv. The lowest demand for Class C logistics real estate was in Lviv — about 7%.
The highest and the lowest rental rates for Class A warehouses
The most important factors in the formation of the cost for warehouse rental are their location (the price is usually higher in the capital), as well as the type of facility. The most expensive are refrigerated warehouses. It is because of their specificity: such premises should be built with special technology and equipped with quality freezers.
According to the results of the third quarter of 2021, the highest rental rate was set for Class A refrigerated warehouses in Kyiv and Lviv — $12.1 (excluding VAT). There was also a high rental cost for fresh facilities in the same cities. It was about $9.1. In other regions, the price for similar facilities rental was lower. The rental rate for multi-temperature warehouses ranged from $6.0 to $8.3. The most “affordable” Class A warehouses were ambient storage facilities. Their rental cost varied from $5.5 to $6.9 in different cities.
What was the rental cost for Class B warehouses?
The tendency for rental rates for Class B warehouses was the same as for Class A facilities: the rental price for refrigerated warehouses in Kyiv and Lviv was the highest. According to the data for the third quarter of 2021, it was $11.1 without VAT. In the same cities, the highest in comparison to other regions price for fresh warehouses was set $8.8. The rental cost for multi-temperature premises ranged from $5.6 in other cities of Ukraine to $7.7 in Lviv. The rental rate for ambient warehouses was the lowest. Depending on the city, it was about $4.6-$6.4.
How much did the Class C warehouse rental cost in Ukraine?
The refrigerated storage facilities were the most expensive in this category as well. Their rental rates in different cities varied from $8.9 to $11.1. Class C fresh facilities were the most expensive to rent in Kyiv and Lviv ($8.0) and the most advantageous in other cities of Ukraine ($6.4). The rental cost for Class C multi-temperature warehouses was lower than for fresh premises and higher than for ambient storage facilities — $5.2-$7.1. According to the results of the third quarter of 2021, the lowest was Class C ambient warehouses rental cost in other Ukrainian cities — $4.1 without VAT.
Demand for outsourced warehousing services
Requests for pallet storage popularity
Another direction that we actively developed in 2021 was the selection of warehouse services from our platform’s partners — 3PL providers. The most popular month was October. At that time, 16,034 pallet storage requests were received on the platform. February with 12,016 requests was ranked second. Also, popular months were July (11,539), June (10,428), and September (8,618).
In which cities were warehouse services requested most frequently?
We analyzed pallet storage requests in different cities. The most popular city by the number of received requests (53.2%) was Kyiv. Odesa took the second position (17.3%) and Lviv — the third one (11.9%). Kharkiv, Dnipro, and Brovary were also popular among customers who required warehouse services. The figures for these cities were 6.5 %, 3.7 %, and 2.5 % respectively.
Conclusions
Using the above-mentioned data, we can summarize the following results in 2021:
- the most popular warehouses in Ukraine were Class B facilities;
- Class A and B warehouses were most in-demand in Kyiv;
- Class C warehouses were popular in other Ukrainian cities;
- the highest rental rate was for Class A refrigerated storage facilities in Kyiv and Lviv;
- the lowest was the rental cost for Class C ambient warehouses in other cities of Ukraine;
- warehouse services were most in-demand in Kyiv;
- October was the most popular month by the number of requests for logistics services.
