Tomas Salamäe: Impact of disruptions and price rises on commercial property is not entirely negative

Restate Development Project Manager Tomas Salamäe says that faced with inflation, it makes more sense to stockpile goods than it does to retain currency which is losing its value and that as such, companies should find more storage space while reducing the costs they are forced to incur.

“Although everyone’s talking about how unpredictable the markets have become, we see not just delays and price hikes continuing in goods and raw materials in the short term, but also a deficit of them, the full impact of which is hard to calculate at this point,” he explained. “Since it makes more sense, because of inflation, to stockpile goods than retain currency which is losing its value, online trade is likely to be the least hardest hit in these circumstances if the commercial property sector is able to offer enough support in the form of flexible spatial solutions.”

Salamäe added that logistics and production companies have shifted their focus. “Previously they zeroed in on changes resulting from trends in online trade and boosting cost-effectiveness, but the pandemic and the war in Ukraine have thrown most companies’ development plans into disarray,” he said. “This year we’re seeing businesses facing a raft of new challenges – including goods and materials not just being delivered on time, but being available at all.”

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