The international real estate consulting company, Knight Frank, and four other leading consultants on the industrial and warehouse market exchanged information on rental transactions completed in 12 months of 2010.
Compared with other consultants, Knight Frank took first place by volume of rental transactions in 2010. The company increased its share of the warehouse rental market in Moscow and Moscow Region to 39% in the fourth quarter of 2010. Total space in transactions with involvement of Knight Frank in October-December was 105,000 sq m. The company’s share of the overall Russian market was 35%, and total space leased in 12 months was more than 215,000 sq m. Jones Lang LaSalle took second place (17% in 4Q and 27% in the whole of 2010), followed by Colliers International (24% and 18%), Cushman&Wakefield (14% and 14%), and Praedium (6% and 7%).
Knight Frank had a successful year in 2010, despite market instability. The company closed 35 rental transactions in the warehouse segment, showing the best results among competitors by number of deals in both Moscow and Russia. The biggest transactions in Moscow Region with involvement of Knight Frank during 2010 were:
- Mitsui – 23,000 sq m at the class-A PNK-Chekhov warehouse complex;
- Uhrenholt Logistics – 13,000 sq m at the class-A PNK-Chekhov warehouse complex;
- Gorenje – 7000 sq m at the class-A Krekshino logistics park, owned by Raven Russia;
- Vinexim – 14,500 sq m at the class-a Trilogy Park Tomilino;
- Gulliver – 21,500 sq m at a class-B warehouse in Podolsk.
Vyacheslav Kholopov, head of the Warehouse, Industrial and Land Department at Knight Frank, commented: “The situation on the warehouse lease market changed very rapidly in 2010, and we are seeing a positive trend, characterised by growth in transaction numbers, agreements on longer rental periods, and (towards the end of the year) reappearance of robust demand for quality warehouse space in Moscow Region. There has been growth in rents, reflecting absence of new supply on the market and predicted low volumes of new warehouse space in the Region during 2011. Developers are once again in a situation where they can take their pick of tenants in speculative projects – particularly within 25km of the Moscow ring road. At the same time, owners are keeping a flexible approach to tenant needs, and are increasingly willing to meet non-standard requests in built-to-suit format.
Olga Lobacheva, an analyst at Knight Frank, noted that 4Q 2010 set records for transaction numbers on the warehouse property market in Moscow Region: more than 300,000 sq m were leased or sold, representing the highest figure since 2007. Transaction volumes in the whole of 2010 were 800,000 sq m, which is 15% more than in 2009, when 690,000 sq m were taken, and is nearly 60% more than in 2008, when the figure was 500,000 sq m.
Table 1. Source: Knight Frank Research, 2010
Note: Knight Frank has been the leader among consultants by volume of warehouse transactions in Moscow Region since 2005.
Table 2. Source: Knight Frank Research, 2010
Note: the five leading consulting companies (Knight Frank, JLL, Colliers Int., Cushman& Wakefield, Praedium) account for 70% of the warehouse market in Moscow Region. About 30% of transactions are through small real estate agencies, or are carried out without any intermediaries.