The 9th International Exhibition for materials handling, warehousing equipment and logistics
19-21 September 2018 • Russia, Moscow, Crocus Expo, pavilion 3

Experts expect e-commerce to increase its share of the market for warehouse property



E-commerce continues consolidating its position as a key client for warehouse property, experts say with certainty.

Vyacheslav Zelepuga, Chief Commercial Officer at A Plus Development Group of Companies, says that e-commerce is becoming one of the drivers boosting the development of this market segment and the upward trend in the lease and purchase of warehouse premises demanded by e-retailers will remain among the trends of the current year.

According to consultants' estimates, it was e-retailers that in 2017 demonstrated the highest demand in the segment, accounting for about 26% of the total trading in the Moscow region. This high rate is thanks to two major contracts; one of them - the contract signed between e-retailer Wildberries and A Plus Development Group of Companies for the construction of a 145,000 sq. m. distribution centre in the Moscow region beat a record over the entire history of the Russian real estate market.

As a consequence, e-commerce is becoming more important for the development of the warehouse segment on the whole. It is driving the market towards built-to-suit projects as e-retailers do not need standard A class facilities. In order to make their business efficient they need warehouse facilities with greater operational heights, larger column spaces and increased floor loads.  

However, it is still too early to say that by the warehouse market trading volumes e-commerce can compete with classical retail, a traditional leader in this respect. In terms of the entire market size, so far e-commerce holds a relatively moderate share nearing 10-15%. But the growth rates, estimated at around 25-30% a year, are quite impressive.