Ukrainian businesses have lost nearly half of their warehouse stock to Russian strikes, and as companies diversify their logistics, rental rates are rising 20-30% compared with the start of the year, commercial real estate consultant Vitaliy Mukhanov told Interfax-Ukraine.
According to a WINHUB study, Ukraine's warehouse infrastructure had shrunk 50% as of early September, with 2.1 million square meters of Class A/B space destroyed by the enemy out of 4.2 million square meters that existed at the start of 2022. New construction over 2022-2026 (800,000 square meters) has only partially offset the losses. The situation is even more pronounced in the Kyiv region, where more warehouse space was lost in the first eight months of 2026 alone than over 2022-2025 combined, with a total of 68% of stock lost (1.5 million square meters).
According to Mukhanov, companies are now actively rethinking how they organize their logistics: reducing the size of individual warehouses, splitting inventory across multiple locations, and considering relocating to relatively safer regions.
"Businesses are trying to avoid overconcentrating inventory in large logistics hubs. In inquiries, there's a noticeable focus on 1,500-3,000 square meter spaces in smaller warehouse facilities. The main goal of this approach is to reduce the risk of losing a significant share of goods and halting operations all at once. We're also seeing interest in the build-to-suit format, that is, constructing facilities tailored to the specific needs of the end tenant or buyer. Facilities still under construction are being actively considered as well," Mukhanov said.
He said the rise in rental rates is already noticeable, with some listings up 20-30%.
"There's still room for further increases, especially in the compact warehouse segment. At the same time, the trend depends on the specific location, the property's characteristics, and the availability of alternatives for tenants, of which there are few. This is also affecting relationships with existing tenants. Owners are more actively pushing to renegotiate rents upward, benchmarking against the rates new clients are willing to pay. Where an agreement can't be reached, some owners are prepared to switch tenants once the contract ends or when its terms allow," he said.
As a result, property owners' negotiating position is strengthening, while tenants have fewer opportunities to preserve their previous commercial terms. According to Mukhanov, the most advantageous approach for businesses is to enter negotiations during the development stage, when it's still possible to secure optimal pricing in exchange for a longer contract term. Insurance terms, which are currently being systematically reviewed, are also affecting future rates.
