Russia has damaged over 500,000 sq m of logistics real estate in Ukraine over the last year
As a result of missile strikes by Russia over the last 12 months, more than 500,000 sq m of logistics real estate in the country has been damaged. An increase in rental rates by 10% is expected, but the impact on the end consumer will be minimal, CEO of the Bureau of Investment Programs Oleksandr Bondarenko told Interfax-Ukraine.
"In 2022, approximately 600,000-700,000 sq m of warehouse complexes were destroyed. If before the war we had about 3.2 million sq m of Class A and B warehouses, then by the end of 2022, about 2.6 million sq m of warehouse real estate remained, serving businesses, commercial projects, importers, exporters, and so on. From mid-2023 to mid-2025, there was a relative lull, but last summer our enemy began hitting Nova Poshta branches and terminals with missiles, and then other large warehouses. According to the Bureau of Investment Programs, over the last 12 months in major cities – Kyiv, Lviv, Odesa, Kharkiv, Dnipro – an additional 400,000-440,000 sq m of dry and cold storage warehouses of Class A and B were destroyed, as well as about 100,000-120,000 sq m of postal terminals," Bondarenko reported.
According to his estimates, Russia’s missiles have destroyed about $0.3 billion in investments in logistics warehouses and $50 million in Nova Poshta real estate throughout Ukraine. The largest attack in the last year was the destruction of Amtel, a logistics complex with an area of 100,000 sq m, containing products of tenants, including such importers as WineTime and Goodwine.
Bondarenko reported that limited supply of warehouses, especially in the capital region, will stimulate an increase in rental rates.
"Rates against the background of a noticeable shortage of supply of Class A and B warehouse real estate will likely increase by 10-12%. But this, I hope, will not affect end consumers. Why? Because over the last four years, importers and distributors have learned to decentralize their main stocks across different regions and locations. Therefore, they will transfer their products from other regional hubs to the distribution centers of retailers in the affected regions," Bondarenko said.