Despite an ongoing decline in office leasing activity and warehouse take-up in the first quarter of 2024, there are some interesting trends emerging in Ukraine’s commercial real estate market, as highlighted by CBRE research.
Office leasing deals have seen a 31% decrease compared to the previous year, with only two major deals signed in Kyiv’s city center. Notably, non-profit organizations are now actively seeking office spaces, a new trend post-Russia’s invasion.
On the other hand, the warehouse segment remains dominated by wholesale and retail sectors, with no new deals or constructions recorded. The competitive stock of warehouses remained stable at 1.41 million square meters.
CBRE forecasts a slow rise in optimism for the warehouse segment, emphasizing the growing importance of Ukraine’s air-defense capability in protecting these facilities from Russian attacks.
As the commercial real estate market navigates these challenges, companies are exploring options for more secure office spaces and ways to protect warehouses from potential missile strikes.