In 2012 the Take-up of Warehouse Facilities Exceeded Pre-crisis Indicators

21 January 2013

According to the results of 2012, Knight Frank Company consolidated its positions in the warehouse and industrial property segment. The company rented out 41% more of warehouse facilities in the Moscow region and 36% more in Russia than its nearest competitors. The share of Knight Frank Company in transactions with consulting companies of the “Big Four” for the last year was equal to 40.8% in Russia and 43.3% in the Moscow region.

In 2012 Knight Frank Company sold out 26.7% of the warehouse facilities of the total transactions volume in Russia and 26.2% in the Moscow region, which is more than in 2011 - 21.7% and 22.2%, respectively.

Shares of Transactions of the Consulting Companies in the Warehouse Segment in 2012*

Source: Knight Frank Research, 2013

According to the results of calculation of the core indicators in the warehousing property market, it became evident that in 2012 absorption volume in this segment was record since 2007. The total absorption volume of warehouse facilities in Russia is equal to 1.6 million square meters.

The main transactions volume was noted in the Moscow region - more than 80%, i.e. about 1.3 million square meters. For 1 year in the Moscow region the volume equal to one-fifth of the total volume of the quality warehouse facilities which had been constructed for the last 9 years (since 2003) was absorbed.

Dynamics of absorption of the quality warehouse facilities in the Moscow region in 2012 exceeded the indicators of 2007, having become a record for the warehousing property market in the Moscow region.

Dynamics of absorption of the quality warehouse facilities, 2005-2013, the Moscow region

Source: Knight Frank Research, 2013

Vyacheslav Kholopov, the Head of Industrial and Warehousing Property and Land Department of Knight Frank Russia and CIS, notes: “Last year was a record year for the market for many reasons: First of all, this absorption volume is a record for the last five years; besides, we have registered very high activity of demand for quality warehouse facilities. The year was also very successful for the team of the Industrial and Warehousing Property Department of Knight Frank. In my opinion, one of the elements of our success (and we have been the leaders for eight consecutive years already) is the fact that the key members of our team have been working together for more than six years, and such an experience of team working also contributes to the increase of their professionalism”.

*Others - transactions directly closed between the owners and the tenants/buyers, as well as transactions closed with participation of the consulting companies, which are not the members of the “Big Four”