Warehouses continue to be in high demand in the Ukrainian commercial real estate market, leading to rising rents.

According to Ukrainian developers, there is a critical shortage of warehouse space, particularly in the most active areas – the Kyiv and Lviv regions. The warehouse vacancy rate in the Kyiv region has slightly increased following the completion of new complexes. Meanwhile, space is shrinking due to the redistribution of product storage across regions.

Analysts also highlight a rise in development activity and plans to reconstruct logistics complexes that were impacted in 2022-2023. Although Kyiv remains the country’s primary logistics hub, the expansion of new space is progressing slowly. Currently, only a few lots of 2,000-3,000 square meters are available for lease.

Given the shortage of space, the rental prices for professional class A and B warehouses continue to climb. In the Kyiv region, the average rental rate for class A in May is $5.4 per square meter per month. The average rates for class A and B warehouses in the Lviv region are slightly higher – $5.5 and $5, respectively. The most significant shortage in the market is large lots. No one is in a rush to sell warehouses or lower prices; costs remain at pre-war levels – $450-600 per square meter, excluding VAT.