By: Jagadeesh Neethimohan --
30 September, 2013
The industrial property market which is most sought after in Russia is undergoing an impasse due to acute shortage of available quality warehouse space. The demand for warehouse space in Russia is led by FMCG, Retail and logistics sectors. The requirements of these companies in 2013 for warehouses of size above 10,000 Sqm was double of what was seen in 2012.But is there enough space available to cater to the market?
Consumer goods companies require factory mutual global standards to synergize their distribution, in rack sprinklers and increased Mezzanine space in their warehouse. Big Box warehouse are the ideal solution in terms of investment and generating returns through economies of scale. With Moscow and St Petersburg markets reaching no vacancy stage what are the alternative locations for these type of warehouse? This white paper analyses the warehouse market in Russia and explores opportunities for alternatives in terms of location and engagement model. Business Case Warehousing as a sector relies on efficiency to reduce total cost of providing service. Big Box provides a way to improve productivity through size and scale of operations. Their role involves holding inventories meant for distribution down the channel or directly to customers.
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