EXECUTIVE SUMMARY:
The total volume of industrial and logistics space in Tbilisi, Batumi, Kutaisi an Poti amounts to approximately 2.5 million sq m, of which 1.16 million sq m is leasable. Tbilisi is the country’s largest supplier, with 767 K leasable area, followed by Kutaisi with 230 K, respectively.
The total capacity of the cold storage in the researched cities amounts to 60,300 sq. m, whereas the share of dry storage is 95% and accounts for 57 K sq m.
A Class space is in short supply, with just 13,000 sq m being operated by the Austrian logistics specialist, Gebrüder Weiss. B and C class storages hold almost the same share in the total leasable area (around 48%).
In 2018-2019, the overall leasable space grew by 17,000 sqm, of which 89% was in Tbilisi.
Transportation, together with Food & Beverage, Construction and Consumer goods are the largest occupier categories in Tbilisi’s storages, renting at around 67% (111 K sq m) of the total leased area in 2019.
In recent years, Tbilisi has experienced the lowest vacancy rate in dry storage, at 8%.
The weighted average rent for dry storages in Tbilisi stands around at USD 3 per sq m in B class, while the figure in C class accounts for USD 2 per sq m.
The weighted average rent for Georgian cold storage facilities usually varies between USD 6-18 /ton net of VAT, depending on the location and quality of the property.
Concerning the regional market, the largest volume of industrial and logistics space is located in Kutaisi, with the area of 347 K sq m in 2019. It is followed by Batumi (277 K sqm) and Poti (132 K sq m). 46% of the total supply in Poti is represented by Terminals.
The weighted average rent for dry storages in the regional cities varies between USD 1.8 per sq m – USD 3 per sq m.
In 2019, the overall vacancy rate in Batumi, Kutaisi, and Poti stands around 30%, 70%, and 17%, respectively. The significant changes was observed in Batumi, where the figure has decreased by 10 percentage points.
More Information: https://drive.google.com/drive/folders/1x6tzQXQG3_M3MgqC8TfXrcFYs-ckoJ6Y
