Kyiv warehouse market is getting more active: the share of pre-leases is growing

Kyiv’s warehouse real estate market is showing high activity in 2024, which is largely due to the shortage of free space. Analysts are recording record volumes of pre-leases, as low vacancy forces companies to book space in facilities under construction in advance.

According to CBRE, the total annual gross absorption in the warehouse market in 2024 reached 167,000 sq m, which is 63% more than in 2023. This is the highest figure since 2021, although 3% lower than last year’s record. The main growth was provided by pre-leases, the share of which in the overall market structure increased by 49% and reached 72%.

The main consumer of warehouse space remains the wholesale and retail sector, which at the end of 2024 covered 67% of the total gross absorption, which is 33 pp. more than a year earlier. At the same time, the share of 3PL operators (tertiary logistics operators) decreased by 19 pp. to 17%. Demand from the pharmaceutical sector has increased noticeably: in 2022-2024 it increased its share to 12%, although in 2019-2021 it was almost not represented in the structure of lease agreements.

The shortage of specialized "cold" warehouses is stimulating pharmaceutical companies to develop their own logistics capacities, reducing dependence on third-party distributors. This trend reflects a general shift towards greater autonomy in supply, which has become critical against the backdrop of war and unstable supply chains.

Despite significant demand, only 79,000 sq m of new warehouse space entered the Kyiv market in 2024. This allowed to increase the total volume of competitive facilities by 6%, to 1.37 million sq m, which is close to the pre-war level. Among the largest new projects are the II and IV stages of the Chayki logistics complex (56,000 sq m) and the I stage of the Dudarkiv complex (23,400 sq m).

It is expected that in 2025 the volume of new supply will be 250,000 sq m, with 87% of them intended for the speculative market, and 13% for own use. At the same time, RLC, one of the largest logistics developers, plans to complete the restoration of a destroyed cold warehouse with an area of ​​58,000 sq m by the end of 2025. The current level of pre-contracts in the upcoming supply already reaches 55%, which significantly exceeds the historical figure of 10-20%, indicating a high level of investor confidence in the warehouse real estate market.