Where Does It Make Sense to Invest in the Warehouse Market?

Opportunities to invest in the warehouse and logistics sector are becoming increasingly limited, as developers quickly seize assets with strong cash flow potential. In the current economic climate, certain warehouse types in specific locations remain highly attractive for investors—while others should be avoided altogether. Our lead broker, Fred Linnukütt, explains where to invest in the warehouse market.

Which Warehouse Properties Are Worth Investing In—and Which Are Not?

From an investor’s perspective, the fundamentals remain unchanged: tenant quality, lease duration, and long-term viability are key. When it comes to development, stock-office properties sized between 150–300 m² are in high demand within Tallinn and along the Tartu Road corridor, particularly around Peetri. These are smart investment targets today, as such favorable conditions won’t last forever. We saw the same dynamic in the last economic downturn—those who built during the slump quickly leased up their assets when the market rebounded, and many still benefit from that foresight. Investment should focus on quality and user-friendly design.

Currently, the market offers a number of speculative ramp-access warehouses, with more on the way. This segment does not warrant investment in 2023 unless a pre-secured tenant is in place. In such cases, it’s wiser to hold off and wait for a specific client before committing to construction.

Read more: https://www.kinnisvarauudised.ee/uudised/2023/03/16/arendaja-hoiab-laopindu-investori-eest-endale-hea-asukoht-ja-planeering-tootavad-head-tulu

Äripäev / Siim Sultson