Elena Stryukova: ‘The market situation creates the need for large logistics parks’

Warehouses. Market Indicators

The total offer of high-quality industrial and warehouse real estate in Kazan today is 432 thousand square metres. In the first half of 2022, an increase in rental rates was recorded: average rate for warehouses in class A reached 607 rubles/sq. m a month (an increase of 16% by the end of last year); in class B — 379 rubles/sq. m per month (an increase of 5%). At the same time, rental rates for vacant premises are by 25-30% higher than the rates for concluded contracts in the same facilities, even taking into account the indexation carried out in the first half of the year.

The vacancy rate in warehouse real estate decreased to 5,2% (by 9,5% by the end of the previous year).

In the first half of 2022, the market of production, warehouse and logistics complexes was replenished with new facilities:

• At the end of June, one of the largest pharmaceutical holdings in Russia, Protek, opened its largest logocentre on 33 Krutovskaya Street in Kazan. The area of the object is over 15 thousand square metres. Investments amounted to 1,9 billion rubles. Protek pharmaceutical holding includes the distribution business of Protek Implementation Centre JSC, the pharmacy chains Rigla, Bud Zdorov!, Zhivika, and the production assets PharmFirma Sotex, Protein Contour, and Rafarma.
• In June, the construction of the new elevator “Sviyazhsk-ZernoProduct” was launched on the territory of the Sviyazhsk Interregional Multimodal Logistics Centre (SMMLC). The investor is a resident of SMMLC — August-Agro company. The design capacity of the elevator will be 112,5 thousand tonnes of one-time grain storage. The cost of the project is estimated at 2,4 billion rubles.

Warehouses. Trends and outlook

• In the first half of 2022, there was a high PR activity of ProGorod PLC (VEB Group.RF) managing the Biek Tau logistics park. The company has repeatedly stressed that there is a consistently high demand for production and warehouse space in Kazan and announced the expansion of the complex: “the purchase of adjacent land plots will allow building three new buildings with a total area of about 120 thousand square metres. Here investors can locate the fulfillment centre — a high-tech facility with advanced equipment, increased floor load, and efficient ventilation systems.” Probably, the bank is preparing its collateral object for sale.
• In the second quarter of this year, the sale of land plots and commercial areas as part of the new FoodGreen production and logistics complex, which was located on the territory of the former Dal-Kama meat processing plant (part of the Zelenodolsk PSEDA), continued. There are 12 industrial buildings and plots on 3,8 hectares. At the time of writing the digest, according to the official website of the site, five lots have already been sold.

• ASG investment group of companies has announced the start of construction of the industrial park Vostok. The park is planned to be located between the M7, Mamadyshsky and Voznesensky tracts under construction. The project provides for the placement of light industry facilities of a low hazard class, logistics, distribution complexes on this territory. Wholesale trade facilities, construction hypermarkets and administrative offices will also be located on the site. The territory of the park is 173 hectares. According to preliminary calculations, the project will generate at least 17 thousand new jobs.
• The works on the construction of the second stage of the Ozon logistics centre, within the framework of the Zelenodolsk PSEDA, continues. It is expected that the complex with an area of 22 thousand square metres opens in the first quarter of 2023.

• KazanExpress is completing the construction of the first building of the new fulfillment centre warehouse within the framework of the Sviyazhsk Interregional Multimodal Logistics Centre. The Tatarstan marketplace declares the construction readiness of the facility — 90%. According to the company, the completion of construction works is planned in the third quarter of 2022. The usable area of the facility will be 120 thousand sq. m. The first stage of the new logistics centre will provide more than 3 thousand jobs. In the future, it is planned to build seven more warehouse buildings with a useful area of 1 million square metres.
• Also, within the framework of the SMMLC, Vybor-Volga Region PLC is building a plant for the production of paving slabs. The cost of the project — 1,8 billion rubles. The resident is a member of the group of companies Vybor PLC, which occupies a leading position in the production of paving slabs in Russia. The construction readiness of the facility is 75%, more than 100 jobs will be created upon its completion.

• Besides, Tatarstan is preparing to become a platform where Russia's first pilot bonded zone will appear. Recently, the long-awaited law on the experiment of creating “bonded warehouses” has been adopted by the State Duma in the third, final reading. The experiment is to start in the autumn, the first bonded warehouse near Kazan is planned to be opened by the Russian Post.

Until 2017, the demand for high-quality warehouse real estate in the regions mainly formed the segment of grocery retail. In 2019, the share of such companies in the total volume of transactions decreased to 26%. In 2020, the redistribution of demand occurred in the direction of e-commerce, the share of such companies tripled. In the future, we predict an increase in the share of demand from manufacturing companies, among which Class A warehouses are in demand, which in all respects are suitable for the placement of production facilities.

According to official statistics, at the moment data have been published only for the first four months of the year, an increase in the industrial production index (IPI) has been recorded: in Tatarstan, it amounted to 109,3% compared to the previous period. In Kazan, the IPI for January-April amounted to 105%.

Market analysis shows that in 2022-2023 the demand for warehouses will remain at a high level. The supply should also increase. According to our estimate, more than a third of transactions for high-quality production and storage facilities fall on regional markets. Experts agree that the market situation creates a steady need for large logistics parks. First of all, because of the formed consumer demand for fast delivery. It is impossible to organise it all over the country, relying only on the capacities of warehouses in the metropolitan region.