29 June 2017

The demand for quality facilities is growing

“The rates are expected to stabilize in the warehouse real estate market within the next 12 months but the tenants became notably active in the first half of the year,” noted Zakhar Valkov, Radius Group CFO on the first day of the CRE Summit 2017.  The stabilization of rates in the warehouse real estate market is expected to take a year but the tenants had been active in the first half of the year.

The CRE Summit 2017 organized by IM EVENTS with the support of the Impress Media Publishing House opened on 28th June at Digital October. The main motto of the summit was “Let’s talk future”. The attendees discussed the future of the warehouse real estate. Where is developer’s potential hidden? How new technologies would develop in the warehousing market, How the demand for built-to-suit facilities would be changed, and The increasing value of the quality projects. 

From the perspective of Zakhar Valkov, Radius Group COO, there has been a demand for high quality facilities in the warehousing market. “Tenants became more active in the first half of the year. Demand is recovering, and it is mainly focused on quality warehouses”. There has been a change in tenants’ approach towards facility selection. If the rate level has been pivotal during the crisis, then today our clients understand that the best facilities in the best locations cost a premium. At the same time warehouse quality and services allows them to optimize their logistic processes as efficiently as possible. What concerns market dynamics, in my opinion, is the warehouse market will not stabilize for at least another 12 months. That said, the trend for high quality warehouses demand will continue to grow,” commented Zakhar Valkov.

The CE Summit is a key event in the commercial real estate market. Annually the event gathers more than 200 participants in one platform. There are leading developers, consultants, designers and architects among the attendees. The CRE Summit 2017 takes place on 28-29 June at Digital October and includes not only panel discussions and round tables but also live presentations.