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Specialists of the management company Alterra Group told how the situation in the commercial real estate market has changed and whether it is worth investing in this industry.
Why investing in commercial real estate is profitable today
The market, which practically began to stagnate in the winter and spring of 2020 due to the impossibility of predicting the near future, quickly reacted to the situation and reformatted into "digital". In other words, business has gone online.
Refusal of the usual trading activity led to a sharp growth in logistics: delivery services, warehouses and service personnel. For example, the American Amazon hired 250 warehouse workers in the third quarter of last year alone, and as a result, the company's total workforce exceeded a million people.
If we consider the situation in the commercial real estate market of Ukraine, the situation is similar here: the increase in the number of e-commerce companies provoked demand for warehouse space.
Как reported portal Minfin.com.ua in the material devoted to commercial real estate, rent and sale prices of warehouses in Ukraine have increased. So, in Lviv, the cost of a square meter of an equipped warehouse has risen in price by almost 20%, and the price of rent - by 10,5%. The main factor of such dynamics is called online trade by the experts of the portal.
If we talk about the benefits of investments in this area, then:
- the yield of the warehouse today is 10% — this is higher yield than the rent of apartments;
- such real estate is extremely easy to scale and reformat;
- there are very low risks of under- and long-term construction and low operating expenses of investors, provided that the management company deals with lease issues.
The payback of a warehouse property is about ten years, while in the residential sector this figure can be 15 or 20 years.
The format of objects is in demand by business
Business today is interested in a comprehensive approach to logistics complexes. Such objects should have warehouse and office premises at their disposal, and, if necessary, retail space and the possibility of organizing showrooms. Another important factor is the connection to transport highways and even the external borders of the state for those companies that conduct foreign economic activity.
The new logistics center has all these features PORT Lviv logistic center, the first phase of which (about 10 square meters) will be commissioned by Alterra Group by the end of 000.
About the object
The hub, the total area of which will be 42 square meters, is located on the territory of more than eight hectares in Lviv on Zelena Street, not far from the bypass road and in the immediate vicinity of municipal transport routes.
The logistics center includes:
- 36000 square meters m of warehouse and production premises, equipped in accordance with world standards;
- 2000 square meters of class "B" office premises;
- 4000 square meters m of commercial premises, including a supermarket, canteen, pharmacy, bank branch;
- developed infrastructure;
- a recreation area with a lake and art objects.
Owners and tenants will be able to choose premises of any convenient area: warehouses from 365 square meters. m, retail spaces from 70 square meters. m and offices - about 60 square meters. m.
Buy or rent
Alterra Group offers three options:
- Buying premises for yourself. It is optimal for companies that need their own office, warehouse or retail space.
- Investments for the purpose of obtaining an annuity. In this case, an investor who purchases a certain area can give it to the management of Alterra Group and steadily receive up to 12% per annum.
- Lease. Part of the premises is intended for lease to representatives of small and medium-sized businesses, for conducting economic activities.
Of course, the first two options are the most beneficial. Commercial real estate, and especially real estate for warehouse use, will most likely increase in price, because the trend toward digitalization of business processes continues. This is the most reliable type of investment in real estate, which only confirms the latest market trends.
But the third option will also bring a lot of benefits to tenants, since the new logistics center is optimal from the point of view of convenience and infrastructure.
About Alterra Group
The management company Alterra Group has in its portfolio 36 properties with an area of 137 square meters in five years in the commercial real estate market. m. 500% of these areas are warehouses, and this makes it possible to speak of great experience in the field of logistics.
Full information about the company, its activities and partners can be obtained on the official website Alterragroup.com.ua, contacts of the new logistics center:
Lviv, st. Green
+380 67 518 38 90
