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Colliers – Tbilisi – Warehouse Market Overview

The total amount of warehouse space in Tbilisi amounts to 1.3 million sqm, of which 910,000 sqm (70%) is owner-occupied and 380,000 sqm is leasable area. Modern European standard warehouse and logistics space did not exist until, in 2013, Austrian provider Gebrüder Weiss delivered 10,000 sqm of A class warehouse near Tbilisi Airport.

Breakdown by types

89% of total leasable stock is dry storage and 11% cold storage. The total capacity of cold warehouses in Tbilisi is around 170,000 tons. The biggest portion of dry storage is B class warehouses and the least portion A class warehouses.

Analysis of rental rate by types

The average rent in A class dry storage stands at USD 11.4 per sqm, in B class it equates to USD 4.7 and in C class – USD 2.4. The rent price in cold type storage is around USD 15.9 per ton for B class and USD 14 per ton in C class. A class cold storage is not available in Tbilisi.

Vacancy rate by types

The average vacancy rate in dry warehouses in Tbilisi stands at around 23% and for cold storage around 51%. The high vacancy of cold storage is mainly caused by seasonality. The average vacancy rate of A class warehouses in Tbilisi stands at 0%, B and C classes have 26% and 40% of vacancy respectively.

Key players

Gebrüder Weiss is the only supplier of A class warehousing in Tbilisi. A big proportion of supply is provided by local companies, which own recently built or refurbished buildings with additional warehouse facilities. Lilo 1, Zahesi 2007 and Transservice are some of the larger local suppliers.

Consumer breakdown by categories

The highest share of occupied space in listed warehouses in Tbilisi comes from F&B companies and hypermarkets (48%), for example: Smart, Furchet Georgia, Carrefour, Natakhtari and Tolia. Another big proportion of demand comes from importers of auto parts, building materials and construction tools – 16% and 14% respectively. Among them should be mentioned Bosch, which recently opened its first large scale regional warehouse in Southern Caucasus at Gebrüder Weiss. Third and fourth place is occupied by local providers of consumer goods & appliances and pharmaceutical companies such as Aversi, PSP and GPC.

Issued construction permits

According to the National Statistics Office of Georgia, in 2010-H1 2014 around 500 permits were issued for the construction of warehouse buildings in Tbilisi, totalling 653,000 sqm. The majority of these permits represent small sized (< 3,000 sqm) buildings which are predominantly owner-occupied. During 2014, 91 construction permits were issued, of which the majority is owner-occupied or small-sized. None of them were suspended. In the next two years, six new leasable warehouses will be added to the market with total leasable area of 57,000 sqm.