The warehousing premises sector improves indicators
In Q3 2012, the indicators of the commercial real estate market in the major cities of Lithuania (Vilnius, Kaunas and Klaipėda) continue to show gradual improvement. Recently, positive changes have been particularly noticeable in the warehousing and logistics sectors, where improving performance continues to be recorded. According to the Lithuanian Department of Statistics, in the first half of 2012, revenues in warehousing and activities typical of transport services increased by nearly 34% compared to the same period last year (sales revenue from warehousing and storage business increased by more than 46%). It is no surprise therefore that this year has seen an increase in the rents and occupancy rates for warehousing.
During the first nine months of the year, the vacancy rate of warehousing premises in Vilnius region fell from 6.1% to 2.9%, and the total vacant area available at the end of Q3 2012 was 12,300 sqm. Furthermore it is very difficult today to find larger premises of 3,000–5,000 sqm in one location. The situation in the market is reflected by the completion of the third phase of the Airport Business Park project in the middle of this year; the premises near Vilnius airport are already fully leased (8,000 sqm warehousing premises with offices). At the end of Q3 2012, the vacancy rate of modern warehousing premises was 1.3% in Kaunas and 4.0% in Klaipėda. Rather high occupancy indicators are determined not only by the demand for such premises, but also by the fact that there is little other development. Vilnius is the only city that can boast of more active developers: this year, 3 new projects with almost 16,000 sqm of modern warehouse space were completed. As a result, the area of modern warehousing premises in Vilnius region increased by nearly 4%, with a total area of 427,500 sqm. In Kaunas, Sanitex completed the construction of a 6,700 sqm warehouse for refrigerated products. In spite of the good occupancy figures developers are not encouraged to start new projects because rising construction costs mean that current rents of warehouses do not give a sufficient return on investment.
In Q3 2012, the indicators of the commercial real estate market in the major cities of Lithuania (Vilnius, Kaunas and Klaipėda) continue to show gradual improvement. Recently, positive changes have been particularly noticeable in the warehousing and logistics sectors, where improving performance continues to be recorded. According to the Lithuanian Department of Statistics, in the first half of 2012, revenues in warehousing and activities typical of transport services increased by nearly 34% compared to the same period last year (sales revenue from warehousing and storage business increased by more than 46%). It is no surprise therefore that this year has seen an increase in the rents and occupancy rates for warehousing.
During the first nine months of the year, the vacancy rate of warehousing premises in Vilnius region fell from 6.1% to 2.9%, and the total vacant area available at the end of Q3 2012 was 12,300 sqm. Furthermore it is very difficult today to find larger premises of 3,000–5,000 sqm in one location. The situation in the market is reflected by the completion of the third phase of the Airport Business Park project in the middle of this year; the premises near Vilnius airport are already fully leased (8,000 sqm warehousing premises with offices). At the end of Q3 2012, the vacancy rate of modern warehousing premises was 1.3% in Kaunas and 4.0% in Klaipėda. Rather high occupancy indicators are determined not only by the demand for such premises, but also by the fact that there is little other development. Vilnius is the only city that can boast of more active developers: this year, 3 new projects with almost 16,000 sqm of modern warehouse space were completed. As a result, the area of modern warehousing premises in Vilnius region increased by nearly 4%, with a total area of 427,500 sqm. In Kaunas, Sanitex completed the construction of a 6,700 sqm warehouse for refrigerated products. In spite of the good occupancy figures developers are not encouraged to start new projects because rising construction costs mean that current rents of warehouses do not give a sufficient return on investment.
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