Breaking the record in warehouses

19 January 2012
Knight Frank to rank the 1st amongst the ‘Big Four’ consultancies by the transacted warehouse space in Russia

Knight Frank, an international consultancy, has become a leader by transacted quality warehouse space in 2011 in Russia.

Knight Frank, acting as a consultant, transacted (leased out/sold) 305 700 sqm of high quality warehouse space in Russia. This figure is a record one on the market over the past 5 years.

The total volume of transactions closed with the engagement of the top international consultancies (‘Big Four’) has reached c. 894 000 for the 12 months of the past year and the share of such deals was about 63% for the entire country.

Knight Frank transacted c. 305 700 sqm of warehouse space (21,74%) , Colliers International - about 274 400 sqm (19,52%), Jones Lang LaSalle – c. 170 000 sqm (12,08%) while Cushman & Wakefield’s share was about 144 000 sqm (10,23%).

As to the Moscow region, this is where Knight Frank transacted c. 218 000 sqm of warehouse space (22,24%). Amongst ‘Big Four’ consultancies Knight Frank ranks first with the share of 40,8% which twice as much as the volume transacted by the nearest agent ranking second.

According to Knight Frank Research, Russian warehouse market picked up in 2011, reaching the pre-crisis numbers. The total transaction volume in the segment doubled compared to 2008 totaling to about 1 400 000 sqm of which approx. 83% has been leased out rather than purchased.

The ‘Big Four’ agencies rating is based on the quarterly transaction data exchange amongst the companies that are members of the Moscow Research Forum (MRF).

Viacheslav Kholopov, Warehouse, Industrial and Land Department at Knight Frank Russia and CIS:

‘2011 can be defined as a revival of the warehouse market in the Moscow region in terms of leasing activity. An increase in demand for the top class A properties has become a major trend most recently, with the demand exceeding the supply by a large margin, therefore, the vacancy rate declined to 0.6% in class A, leading to the uplift of the rental rates to the pre-crisis level of $130–135/sqm per annum. The development activity was focused on the Moscow region as the most stable market whilst elsewhere the demand has not been particularly sustained.

Knight Frank showed the best results ever since 2007. Amongst the success factors are our high visibility on the warehouse market as well as generally the right market development strategy. Moscow and the Moscow region are still a key market in Russia with the predominant share of all the transactions on the warehouse market – about 70% of the total transaction volume. I am very glad to point out that we are continuing our leadership on this submarket. Whilst we continue developing warehouse and industrial expertise within our company we are quite certain that a new record will be set very soon.

Largest lease and sale transactions on the Russian market in 2011:

Moscow region (*Knight Frank’s involvement)

  • Noginsk Vostochny Logistics Park - leased to X5 Retail Group (75 000 sqm). Developer - Raven Russia.
  • PNK-Vnukovo Logistics Park - a sale (design&build*** project), acquired by Centre Obuv (50 000 sqm)*. Developer - PNK Group.
  • PNK-Vnukovo Logistics Park - a sale (design&build project), acquired by Dixi (47 116 sqm). Developer - PNK Group.
  • Pushkino Logistics Park - leased to Leroy Merlin (40 000 sqm).
  • PNK-Chekhov Logistics Park - leased to Alidi (39 500 sqm)*.
  • Bykovo Logistics Park - leased to Bosch Siemens (34 500 sqm)*. Developer – Infrastroy Bykovo.
  • Khlebnikovo Logistics Park - leased to Orion Trade (22 000 sqm).
  • Belaya Dacha Logistics Park - leased to Pharma Empire (21 000 sqm)*.
  • South Gate Industrial Park - leased to John Deerе (20 000 sqm).
  • Dmitrov Logistics Park - leased to VEDK (18 050 sqm).
  • PNK-Chekhov Logistics Park - leased to VEDK (17 880 sqm).
  • Istra Logistics Park - leased to Azbuka Vkusa (15 000 sqm). Developer - Raven Russia.
  • Klimovsk Logistics Park - leased to Danone Unimilk (11 500 sqm)*. Developer - Raven Russia.
  • Noginsk Vostochny Logistics Park - leased to Central Division (11 500 sqm). Developer - Raven Russia.

Saint-Petersburg and the other regions (**Knight Frank’s involvement)

  • Saint-Petersburg. STK Logistics Park - leased to Major Terminal (27 750 sqm).
  • Kazan. Q-Park Logistics Park - leased to Eldorado (26 903 sqm).
  • Kaluga. Vorsino Logistics Park - leased to Metsa Tissue (25 418 sqm).
  • Saint-Petersburg. Unipack Logistics Park – leased to MAN (20 770 sqm).
  • Saint-Petersburg. MLP Utkina Zavod Logistics Park - leased to Khoral (18 000 sqm). Developer - MLP.
  • Saint-Petersburg. Gorigo Logistics Park - leased to Pharma Empire (19 800 sqm). **
  • Saint-Petersburg. AKM Logistics Park – leased to TPV Technologies (18 960 sqm).
  • Kazan. Биек Тау Logistics Park - leased to ATM (18 700 sqm).**
  • Saint-Petersburg. MLP Utkina Zavod Logistics Park - leased to Russian Light (10 000 sqm). Developer - MLP.
  • Novosibirsk. Ob’ Logistics Park - leased to Pelican (7600 sqm). Developer - Raven Russia.

*** Design & Build – строительство projectа под ключ по заказу клиента

The volume of warehouse space transacted by Knight Frank in last 5 years