Expert analysis of the commercial real estate market in wartime

Partner of the INTELEVRAZ Investment Company and INTELEVRAZ Property Management

The war changed the commercial real estate market. Many businesses transferred employees to remote work, many were forced to relocate and completely change the model of their work.

Valentyna Grechka, Partner of the INTELEVRAZ Investment Company and INTELEVRAZ Property Management, comments the situation in the commercial real estate market.

“Today, due to the war, commercial real estate is in greatest demand in the Lviv region. In the regions where there were military actions – Kyiv, Kharkiv, Chernihiv, Sumy regions and others, business has partially or completely stopped. The rental business is practically not developing in these regions. Companies that had the opportunity to relocate and keep their businesses usually chose the West of Ukraine.

There are practically no vacant commercial premises in Lviv region. The same situation is observed in Khmelnytsky, Ternopil, Ivano-Frankivsk and Zakarpattia regions. But the problem is not only in demand, there are no modern commercial facilities at all in the West of Ukraine.

We have closely monitored the situation in almost every region of our country. There is a certain percentage of enterprises that have moved and are moving now from Kharkiv, Luhansk, Donetsk, Mykolaiv, Kherson regions, some of them plan to stay in Kyiv.

In Kyiv and the region, about 400,000 square meters of warehouses were destroyed or damaged. This is 20% of all warehouse space in Kyiv and the region. This is a global problem and a huge loss for businesses, as the premises were destroyed together with the products. Business in Kharkiv, where there are many facilities and developed industry, has also suffered greatly.

People are returning to the capital, but so far there is no return of business and full recovery. We see that less than half of the tenants work in the commercial facilities managed by our сompany INTELEVRAZ Property Management in Kyiv” – said the Partner of INTELEVRAZ.