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"Get Ready for a Warehouse Boom"

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7 October 2003
"Get Ready for a Warehouse Boom"

Despite the fact that Moscow currently has only a fraction of the modern warehouse facilities it needs, there is no spectacular boom in development going on. But experts are predicting massive class A warehouse construction as big international players enter the Russian market in the near future.


However, most analysts agree that only a small number of local warehouses meet international standards. According to Stiles & Riabokobylko, in early 2003 the class A warehousing market in Moscow and the Moscow region consisted of only 200,000 square meters. That figure may stand at about 250,000 square meters now and will reach about 330,000 square meters in early 2004, said David O'Hara, chief operating officer at Stiles & Riabokobylko. Jones Lang LaSalle estimated earlier this year that the quality warehousing market in Moscow consisted of 642,000 square meters, of which 170,000 square meters met all institutional standards. According to PMC data, Moscow has about 720,000 square meters of international-standard warehousing. The fact that many warehouses are not authorized facilities and lack registered property rights makes exact estimates impossible, Stiles & Riabokobylko said. "Overall, the warehouse market is characterized by an extreme lack of space in Moscow, especially class A. This city needs at least three times as much quality warehousing," said Dmitry Novozhilov, an analyst at PMC Warehouse World.

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