Throughout 2019, the warehouse real estate market experienced a shortage of quality supply, which supported demand in the segment of built-to-suit transactions. This meant that in 2019, a record for the last three years was recorded in the volume of rental and purchase transactions in St. Petersburg. The total transaction volume at the end of 2019 was amounted to 356,000 sq m, which is almost two times higher than the same period in 2018 and the highest over the past five years. The increase in speculative space did not significantly affect the average vacancy rate – at the end of 2019, the share of vacant space in high-quality warehouse facilities was 3%.
In the past two years, the market has faced a shortage of quality supply and increasing rates, which prompted developers to build speculative projects. Last year, a number of projects were announced that will create new high-quality supply in the next few years. In 2020, about 330,000 sq m of warehouse space is planned for commissioning, 55% of which are speculative.