It is highly unlikely that new warehouse spaces can still be developed or leased at the same price levels seen a few years ago. Only a few new warehouse projects are set to be completed in the near future. Our lead broker, Fred Linnukütt, shares his outlook for the warehouse segment in the year ahead.

What Should Warehouse Developers and Tenants Be Prepared For in 2023?

For developers, a longer sales cycle is to be expected—especially for projects already completed. It’s also time to reassess asking rents and make adjustments, as the era of peak pricing is over. We’re in a transitional period where price corrections are needed. So far, few have made the first move, but waiting is not an option if the goal is to attract tenants. Fortunately, we are starting to see competitively priced warehouse products coming to market.

For tenants, it’s a favorable time to negotiate—whether on rent or in fit-out conditions. It’s also wise to pay close attention to the rent escalation clauses in lease agreements. If the rent increase is tied solely to CPI, there should be reasonable caps in place.

Read more: https://www.kinnisvarauudised.ee/uudised/2023/03/21/patiseis-pidurdab-turgu-laopindade-arendaja-ootab-uurnik-viivitab

Äripäev / Siim Sultson