A warehouse generates 14-18% per year — 2-3 times more than a rental apartment. Market vacancy is only 3-4%. E-commerce is growing at 25% annually. In this article you will find specific payback calculations, a comparison of investment instruments, and a step-by-step plan for investors.
Why warehouses are the most profitable real estate in 2026-2028
Warehouse real estate in Ukraine is experiencing an unprecedented boom. Space shortages, e-commerce growth and business relocation have created a market where any new warehouse finds a tenant within 1-2 months. Here are 6 reasons why now is the best time to invest.
Space shortage
Warehouse vacancy is only 3-4%. The warehouse space deficit in Ukraine amounts to 2-3 million m². Any new warehouse finds a tenant within 1-2 months.
E-commerce boom
E-commerce is growing at 25% annually. 480 million parcels via Nova Poshta in 2024. The country needs fulfillment centers and last-mile hubs everywhere.
Business relocation
11,083 companies relocated in 2024. Movement from east to west and central Ukraine is creating record demand for new warehouse and production space.
Rising rental rates
Rental rates in Kyiv: Class A — $5.3-5.5/m²/month, Class B — $2.9-3.5/m²/month. Rates are growing by 10-15% annually. The trend will continue until 2028-2030.
Industrial parks
31 new industrial parks in 2024. Government budget of UAH 500 million. 10 years free from land and profit taxes — ideal conditions for investors.
Reconstruction and logistics
New supply chains, transshipment and sorting hubs. International logistics companies are seeking space for expansion in Ukraine.
We see how clients who built warehouses "for their own use" are now leasing part of the space — and the rental income exceeds their core business revenue. This is no coincidence: the warehouse real estate market in Ukraine is one of the most profitable in Europe.
Investment comparison: warehouse vs apartment vs deposit
An investor always compares. A rental apartment, a bank deposit, government bonds — familiar instruments. But warehouse real estate outperforms them across all key parameters. Let us look at the numbers.
| Parameter | Warehouse for lease | Rental apartment | Bank deposit |
|---|---|---|---|
| Net yield | 14-18% | 7-10% | ~4% real |
| Payback | 5-7 years | 10-15 years | — |
| Asset value growth | +15-20% per year | +5-8% per year | 0% |
| Vacancy risk | Minimal (vacancy 3-4%) | Medium (5-10%) | Inflation risk |
| Passive income | Yes (NNN lease) | Requires management | Yes |
| Inflation protection | Yes (rates in $) | Partial | No |
| Scalability | Easy (add sections) | Difficult | Linear |
A 15% bank deposit is an illusion of yield. Inflation eats up most of it. An apartment takes 10-15 years to pay back, then needs renovation. A warehouse — 5-7 years, and rates are pegged to the dollar. This is not theory — these are real numbers from our clients who lease the facilities we have built for them.
What to build — types of investment properties
Not every warehouse is equally profitable. The property format determines the yield, risks and target tenant audience. Let us examine the three most profitable formats for investors.
Warehouse complex — leasing to logistics operators
| Parameter | Warehouse complex |
| Area | 1,000-5,000 m² |
| Wall height | 8-12 m |
| Construction cost | from 280 $/m² |
| Rental rate | $3-5.5/m²/month |
| Net yield | 15-18% |
| Tenants | Logistics operators, e-commerce, distributors |
Small units — leasing to small businesses
| Parameter | Small units (6-12 pcs.) |
| Unit area | 200-400 m² |
| Wall height | 4-6 m |
| Construction cost | from 250 $/m² |
| Rental rate | $5-8/m²/month per unit |
| Net yield | 18-25% |
| Tenants | Auto repair shops, furniture workshops, food production, service companies |
Production hangar with crane beam
| Parameter | Production hangar |
| Area | 500-1,500 m² |
| Wall height | 6-10 m |
| Construction cost | from 320 $/m² |
| Rental rate | $6-9/m²/month |
| Net yield | 16-22% |
| Tenants | Metalworking, machinery manufacturing, equipment repair |
ROI calculation — three real scenarios
Theory without numbers is not an argument for an investor. Below are three specific scenarios with investment calculations, annual income and payback periods. Prices are current as of 2026 for LGSF construction by ReadyCon.
Scenario 1: 1,000 m² warehouse for a logistics operator
| Cost item | Amount |
|---|---|
| Turnkey construction (1,000 m² × 320 $) | 320,000 $ |
| Land + utilities | ~50,000 $ |
| Total investment | 370,000 $ |
| Rental rate ($4.5/m²/month) | $54,000/year |
| Operating expenses (NNN) | $0 (tenant) |
| Net annual income | $54,000 (14.6%) |
| Payback | 6.8 years |
Scenario 2: 6 units of 200 m² for small businesses
| Cost item | Amount |
|---|---|
| Turnkey construction (1,200 m² × 270 $) | 324,000 $ |
| Land + utilities | ~40,000 $ |
| Total investment | 364,000 $ |
| Rental rate ($6/m²/month × 1,200 m²) | $86,400/year |
| Vacancy (1 unit out of 6) | −$14,400/year |
| Net annual income | $72,000 (19.8%) |
| Payback | 5.1 years |
Scenario 3: 500 m² production hangar with crane beam
| Cost item | Amount |
|---|---|
| Turnkey construction (500 m² × 350 $) | 175,000 $ |
| Land + utilities | ~25,000 $ |
| Total investment | 200,000 $ |
| Rental rate ($7/m²/month) | $42,000/year |
| Net annual income | $42,000 (21%) |
| Payback | 4.8 years |
* Construction prices are for ReadyCon LGSF frames with delivery and installation. Land and utility costs are approximate and vary by region. For industrial parks with simplified connection procedures — 20-30% less.
The small-unit scenario is our recommendation for first-time investors. Lower risk thanks to diversification, higher income per square meter, and — most importantly — demand for small spaces in Ukraine far exceeds supply. We design these complexes with the option for phased expansion.
Step-by-step plan for investors
From decision to first rental payment — 3-4 months. Here is the roadmap for an investor who has decided to build a warehouse for lease with ReadyCon.
- Location and demand analysis. Identify the city and industrial zone. ReadyCon provides a free site assessment, analyzes rental demand in the region, and recommends the optimal property format.
- Format selection. One large warehouse or several small units? For logistics, production or services? The decision depends on budget, location and target tenants.
- Land plot. Purchase or long-term lease. Industrial parks offer ready-made infrastructure with 10-year tax incentives. ReadyCon advises on selection and paperwork.
- Design. Sketch → working design → cost estimate. 10-15 business days at ReadyCon. Fixed price in the contract — no extra charges during construction.
- Manufacturing and installation. LGSF frame manufacturing at the factory (20-30 days), foundation work on site in parallel. Installation — from 20 to 60 days depending on the scale.
- Permits and documentation. Construction commencement declaration, commissioning. ReadyCon handles the entire process — from urban planning requirements to the certificate of completion.
- Leasing. Tenant search can begin during construction. First payment — within 3-4 months from project start.
Risks and how to minimize them
Every investment carries risks. An honest analysis is more valuable than attractive promises. Here are the main risks of warehouse real estate and specific ways to minimize them.
| Risk | Probability | How to minimize |
|---|---|---|
| No tenants | Low (vacancy 3-4%) | Build for specific demand, multi-format approach (divide into units) |
| Rising construction costs | Medium | Fixed price in ReadyCon contract, LGSF is less affected by inflation |
| Legislation changes | Low | Industrial parks have 10-year guaranteed incentives |
| Competition from new warehouses | Medium | Location + quality + small format is less competitive |
| Security risks | Depends on region | Western and Central Ukraine — minimal risks. Insurance |
Frequently asked questions about warehouse real estate investment
Minimum investment — from $75,000 (300 m² in a regional city). Optimal format — from $150,000 (6 units of 200 m² each). Large logistics warehouse 1,000+ m² — from $350,000. The price includes design, LGSF structure manufacturing, delivery and turnkey installation.
Net rental yield is 14-18% per year for a single warehouse, 18-25% for the small-unit format. For comparison: a rental apartment yields 7-10%, a bank deposit — approximately 4% real yield after adjusting for inflation.
Depending on the format: large warehouse — 5.5-7 years, small units of 200-400 m² — 4-5.5 years, production hangar with crane beam — 4.5-5.5 years. Payback is calculated from the moment the facility is commissioned and the first rental payment is received.
Yes. A long-term lease of 49 years legally permits capital construction. Industrial parks offer land plots with ready-made infrastructure and preferential terms — 10 years free from land and profit taxes.
Logistics operators, e-commerce companies (fulfillment), manufacturers, distributors, auto repair shops, furniture workshops. Demand significantly exceeds supply — warehouse vacancy rate in Ukraine is only 3-4%.
LGSF construction is 2-3 times faster (3-4 months instead of 12-18 for reinforced concrete). Less capital is tied up — you start earning sooner. Modularity: easy to add a section or divide the space into units for different tenants.
Free investment project calculation
Send your site parameters — receive a warehouse sketch, construction estimate and payback forecast within 48 hours. Free on-site engineer visit. We work across all of Ukraine.
Own manufacturing: Dnipro, 15A Sicheslavska Naberezhna St.
readycon.com.ua · ReadyCon@ukr.net