Russian strikes cut Kyiv-region warehouse capacity by 34%, vacancy falls below 1%
Warehouse space in Kyiv and Kyiv Oblast shrank by 34% to 1.05 million square metres in August 2026 following destruction linked to intensified Russian missile strikes on logistics infrastructure. Vacancy fell to 1%, while asking rents rose by an average of 10% since the start of the year. New construction has mostly replaced lost capacity rather than expanding supply.
Key points
- Kyiv-region warehouse capacity fell 34% to 1.05 million square metres in August 2026.
- Warehouse vacancy in Kyiv and Kyiv Oblast dropped to 1% by the end of August.
- Asking rents rose by an average of 10% from the start of 2026 to $4.7–6, or 210–270 hryvnias, per square metre per month.
- Effective rents for high-quality dry warehouses increased by 8% to $5.7 per square metre per month, excluding VAT and operating costs.
- About 150,000 square metres of new warehouse space opened on Kyiv Oblast in the first half of 2026, 28% more than a year earlier.
- Gross warehouse absorption reached roughly 180,000 square metres in January–August, up 6% year on year.
- Ukraine lost 2.1 million square metres of Class A and B warehouses since February 2022, half of its pre-war total.
- Compensation for Kyiv-region losses is expected to remain incomplete, with high demand and rental pressure persisting through year-end.
Why it matters
The destruction of logistics infrastructure has created a severe shortage of storage space for companies whose premises were damaged or whose operations were disrupted by the war. Relocating businesses are competing for the remaining warehouses, pushing rents higher and increasing operating costs for logistics operators, retailers, manufacturers and other supply-chain businesses. New construction is largely replacing destroyed capacity, so it is not materially easing the shortage.
What happened
The competitive supply of warehouses in Kyiv and Kyiv Oblast had recovered to about 1.6 million square metres by the end of June 2026, matching the pre-war 2021 level. By August, however, the total had fallen by 34% to 1.05 million square metres as intensified missile attacks damaged logistics infrastructure. Vacancy consequently dropped to 1% by the end of August, while asking rents rose by an average of 10% from the beginning of the year to $4.7–6 per square metre per month, or 210–270 hryvnias. The effective rate for high-quality dry warehouses increased by 8% to $5.7 per square metre, excluding VAT and operating costs.
About 150,000 square metres of new warehouse capacity opened in Kyiv Oblast during the first half of 2026, 28% more than in the same period of 2025, but new supply mainly substituted for destroyed facilities. Gross absorption reached about 180,000 square metres in January–August, 6% more than a year earlier. In July–August, 82% of leasing activity was attributed to business relocation because of the war, while 18% reflected expansion. Logistics operators accounted for 42% of leasing activity, wholesale and retail businesses for 38%, and fast-moving consumer goods companies for 20%.
How Ukrainian sources describe it
Ukrainian reporting emphasises the scale of the damage to logistics infrastructure and the concentration of warehouse losses in Kyiv Oblast. It also highlights the effects on rents, business relocation and supply chains, including large companies distributing inventories among facilities elsewhere in western Ukraine. The broader context shows that Ukraine has lost half of its pre-war Class A and B warehouse space since the beginning of the full-scale invasion.
Background
Before the full-scale war, Ukraine had 4.2 million square metres of Class A and B warehouses. Since February 2022, 2.1 million square metres, or 50% of that total, have been destroyed. New construction has compensated for 38% of the losses, adding about 800,000 square metres and leaving approximately 2.9 million square metres on the market. Kyiv Oblast had 2.2 million square metres of warehouses before the war, of which 1.5 million square metres were destroyed. Sixty percent of the region's warehouse losses occurred in the first eight months of 2026, when it lost more warehouses than during the previous four years of war combined.