Experts of the company KNIGHT FRANK was named the biggest deal on the rental of commercial real estate in ST. PETERSBURG
Knight Frank annually publishes a report on the status of warehouse and industrial real estate market. Regular study revealed the main trends of the first half of 2017.
Having studied the situation, Knight Frank experts made the following findings:
- For the past period 33 thousand m2 of quality warehouse space were put into operation, and input of speculative market areas to the market was minimal.
- Net merger of quality warehouse space according to the results of the half-year amounted to 23 thousand m2.
- In view of rotation of tenants jobs growth occurred in class A.
- Situation in the warehouse segment of real estate market of Saint-Petersburg is gradually stabilizing. Over half-year positive trends were observed. Primarily increase in demand from tenants was observed, as evidenced by the conclusion of a number of large transactions.
- The requested lease rates of quality warehouse complexes in average are stable and remain at the level of the end of 2016.
Michael Tyunin, Deputy Director of Knight Frank St. Petersburg noted: "Despite the fact that 190 thousand m2 of classes A and B are vacant at the market, it is difficult to find free area of large formats from 10 thousand m2. And demand for such facilities exists. This explains the growing interest of customers to built-to-suit format with subsequent purchase of the constructed facility. Now leading developers are able to offer the highest quality of construction, while maintaining price affordable to the consumer. And this is an important point in the development of warehouse market: lease transactions begin to concede the advantage to sales transactions”.
The report pointed out that the first half of the year was marked by conclusion of the largest lease transaction in the Northwest. Part of warehouse complex of ValeCorp Limited with area 13.7 thousand m2 in St. Petersburg. This part of warehouse complex was managed by Are Russia. The tenant is rapidly developing company Best Price, the largest federal retailer operating in the format "fixed price".
Sergey Khotyanovsky, the expert of Are Russia in the field of property management, commented on the transaction as follows: " Are Russia has experience in implementing Finnish practices in the field of Property management and knowledge of Russian realities of life activity of large real estate facilities. This combination allows the company to offer customers design of the most yield of facility and possibility of increasing its value during operation due to integrated approach to the management of contractors, tenants, partners and sustainable improvement of technical and service characteristics of the facility. Conclusion of the transaction is a direct consequence of this work. The more attractive the facility is, the more it meets modern requirements, the more it is interesting it to tenant”.