The industrial real estate market in St. Petersburg, despite the emerging concerns about possible changes in logistics chains, confidently holds the second position in the rating of demand and absorption in Russia.

We see rapid construction of new high-quality warehouse facilities – by the end of 2023, more than 383,000 sq m had been commissioned in the St. Petersburg agglomeration, which is 13% lower than in 2022, but 1.8 times higher than the 10-year average.
The demand set a new record – 966,000 sq m, showing an increase of 1.5 times compared to the previous maximum in 2021. The build-to-suit format is gaining momentum, accounting for 44% of the demand or 425,000 sq m, which is caused by an extremely acute shortage of vacant premises that do not meet all the requirements of key market players.

Even taking the hidden vacancy and possible subleasing into account, we'll arrive at a total of no more than 70,000 sq m of storage space that can be leased in the agglomeration, and high demand in the backdrop of “close to zero” vacant supply continues to push up the asked rental rates.