The resulting difficulties with logistics forced companies to create their own additional stocks of raw materials and components due to the rising cost of transportation and unpredictable delivery schedules. Additional space was also needed to store their own products, which could not always be shipped to customers.
This market is very heterogeneous, experts note. There are both old production bases from the Soviet period and newer facilities built according to modern standards. In addition, warehouses differ from each other by a whole set of characteristics – design, size, degree of mechanization of operations, type of storage, availability of communications and functional purpose (specialized warehouses, warehouses of finished products, etc.). For qualitative preservation of perishable products, the warehouse should be equipped with refrigeration equipment, and for storage of household items, shelving is required. For transportation of large batches of goods it is desirable to have a railway line, and for loading and unloading operations – functional cargo areas. These and many other features affect the pricing of storage facilities.
“The demand for warehousing space is still quite high today, which is due to the increase in the logistics period. And those companies that rent warehouses, try to buy them in the property, as it guarantees stability for business, – says the director of real estate agency Nika Imobil Peter Oleynik. – Companies that have a long production chain (wholesale, retail, etc.) mainly seek to buy, build or re-equip for their own needs. Own warehouses are built mainly by retail and pharmaceutical chains, suppliers of food products, household goods, etc. That is, mainly companies that have high requirements for storage and, provided they have a site in a good location”.
But the demand for warehouse space is mainly in Chisinau, where economic activity is concentrated. And the price gap between Chisinau and the regions for production facilities or warehouses suitable for conversion is quite significant.
According to Petru Oleinic, old production buildings (according to some estimates, this is 70% of the warehouse space located in the capital) are also in demand today. These facilities have a high group of capitalization, i.e. strength of structures, fire resistance and overall durability of structures. As a rule, these are concrete objects with a long service life and high fire protection properties, in which large groups of goods can be stored. Enclosures with significant column spacing and high ceilings are particularly in demand. Today, the storage capacity of a warehouse is more important than the floor space. Warehouse solutions that offer optimization of warehouse space using pallets, shelving, loading and unloading equipment and other elements are being developed very actively. For example, when heavier loads can be stored on the lower level and something lighter can be placed on the second level.
“That is why currently a new warehouse built of lightweight structures with sandwich panels and a reconstructed old Soviet production building cost about the same,” says Petr Oleinik.
Renting outdated premises costs 2-3 euros per square meter, modernized old stock buildings are rented for 5-6 euros per square meter, and new modern warehouses cost 7-8 euros per square meter.
It is often possible to observe built production and warehouse structures along the highways outside Chisinau. This is due to the high cost of land in the city or buyers are not satisfied functionally with the objects that the market offers. It makes no sense to buy old buildings in the city, demolish them and build again. It costs too much. It is much more profitable to buy land outside the city and build a new warehouse. This is suitable for a business that does not need communications (except electricity), or is connected with agriculture, in which case you do not even have to change the status of the land.
In Chisinau there is practically no land left for production and warehouse premises, experts say. And the owners of the objects inherited from former times are not interested in their reconstruction due to the long payback period. They prefer to demolish old buildings and build housing in their place, with commercial spaces that will allow them to recover their costs much faster.
According to Eduard Pinkas, commercial real estate manager of Proimobil agency, warehouse space for sale appears on the market very rarely, mostly for rent. Depending on the condition and availability of repairs, the rental price varies from 3 euros to 5-7 euros per square meter.
Rental rates for old stock 1-3 euros per square meter, new premises are rented for 5-8 euros per square meter (including VAT). If the warehouse is in good condition and appears on sale, its price is 500-700 euros per square meter.
An insignificant share is occupied by warehouses in semi-basement premises of Soviet-built residential buildings. They are offered at a price of 280-300 euros per square meter.
New warehouses for rent without a large tenant of about 2-5 thousand square meters are not built, it is too risky.
“First we find a client, and then we look for an investor who will build warehouses for him. But he agrees on the condition that the payback period of the facility will be about 10-12 years,” says Eduard Pinkas.
