The warehouse estate market of the Moscow area is still crippled by an acute imbalance of supply and demand and at the moment is definitely characterized as a landlord’s market.

Due to the vibrant absorption of storage space outpacing the rate of new projects commissioning, the segment faces a significant shortage of vacant premises. Only about 0.3% of the 23.6 million sq m of quality supply is vacant, which in absolute terms is equivalent to 63,000 sq m. The given factor, in its turn, propelled the rent to new highs beyond the “psychological mark” of 10,000 RUB/sq m/year, which is a new historical maximum for the market.

The level of new storage space commissioning is comparable with the figures for the same period of the previous year – 315,000 sq m. However, this level of new supply is still insufficient to change the situation on the market. Furthermore, a considerable share of speculative premises had been contracted before their commissioning.

Taking into account the dynamics of demand and low vacancy rate in newly commissioned facilities, there is every reason to believe that the situation will not change dramatically by the end of 2024.

A further upward trend in rental rates and tougher competition for vacant units is expected.