Russian attacks have destroyed roughly half of Ukraine’s modern warehouse stock. By early September 2026, 2.1 million sqm of the 4.2 million sqm of Class A/B space that existed at the start of 2022 had been lost, according to the latest research by UTG. New construction has added around 800,000 sqm over the same period. That is not enough to offset the damage. The URE Club (Ukrainian Real Estate Club) has summarised the situation in an article for Property Forum.
The Kyiv region has been hit hardest. Of its roughly 2.2 million sqm of pre-war warehouse stock, around 1.5 million sqm, or 68%, has been destroyed. Vacancy in Kyiv and the surrounding region fell to 2.5% in H1 2026. Large blocks have effectively disappeared from the market, and available units are mostly around 1,000 sqm. Demand meanwhile keeps rising. Gross take-up in Kyiv grew 46% to 160,000 sqm in January–June 2026, while new supply totalled 98,000 sqm, down 54% on the previous half-year. For an occupier needing 10,000-20,000 sqm, the problem is now availability as much as price.
UTG reports that rents for quality warehouse space have risen by 12-13% in recent months. Effective Class A rents in the Kyiv region stand at $5-5.5 per sqm per month, excluding VAT and service charges, and individual deals for the most sought-after or protected assets reach $6. In western Ukraine, including the Lviv region, rents are $6-7 per sqm. UTG describes the result as “a landlord’s market.” Owners are also cutting or scrapping rent-free periods, reducing discounts, tightening indexation and pushing for longer leases.
Occupiers are responding by moving away from large centralised hubs and spreading inventory across smaller sites in several regions. This limits the risk of losing a large share of stock in a single strike. Electronics retailer COMFY says it adopted this diversification model at the start of the full-scale invasion. The company acknowledges that it costs more, with higher spending on rent, handling and transport. Fuel prices and labour shortages add further pressure.
UTG estimates that producers’ and retailers’ total logistics costs could rise by 30-40% as a result of higher rents and the fragmentation of warehouse networks. This does not translate one-to-one into consumer prices, because logistics is only one component of cost alongside purchase prices, exchange rates and competition. Temperature-controlled food categories are the most exposed, given their equipment and energy needs. Local seasonal goods with short supply chains are the least affected.
With demand outpacing supply and new development unable to restore pre-war volumes quickly, occupier demand is expected to shift further towards smaller warehouses, build-to-suit projects and facilities in safer regions.
