Russian Warehouse Market Sees Sharp Decline as Economy Slows - The Moscow Times
Russia’s warehouse and logistics property market is experiencing a significant downturn as the broader economy slows and business activity weakens. Developers and companies are reducing investment in new storage facilities, while many existing tenants are shrinking their rental space due to falling consumer demand and rising operational costs. The once-rapid expansion of e-commerce and logistics networks has also cooled, forcing businesses to reassess their long-term needs. Industry analysts note that geopolitical pressures, import restrictions, and reduced purchasing power are further influencing market sentiment. As a result, vacancy rates are slowly climbing, and rental price growth has stalled across major regions. While some resilient sectors such as food distribution and essential goods continue to occupy stable warehouse space, the overall environment remains challenging. Experts believe the market may see gradual stabilization only if economic conditions improve and supply chains regain momentum in the coming year.
The Key points
- Warehouse market in Russia shows a noticeable decline.
- Economic slowdown reduces demand for logistics and storage facilities.
- Developers pause or delay new warehouse construction projects.
- Businesses reduce rented space due to weaker consumer spending.
- E-commerce growth cools after years of rapid expansion.
- Rising operational costs pressure companies to optimize warehouse usage.
- Vacancy rates begin to increase across major regions.
- Rental price growth slows as supply outpaces demand.
- Essential goods sectors maintain more stable warehouse activity.
- Analysts expect recovery only if economic conditions improve soon.
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