Industrial warehouses in the Hlaing Tharyar industrial zone.

RENTAL demand for large warehouses has decreased in the current harvest season, say real estate agents.

U Aung Kyaw Oo, manager of Ko Kant Hyar Kwe Real Estate, said large warehouses in Hlaing Tharyar and Shwe Pyi Thar industrial zones are less in demand than last year at this time.

“In my opinion, the demand for the big warehouses of 30,000-100,000 square feet is down by about 60 percent. Last December we received lots of enquiries for space of that size from commodity traders. But this year it’s mostly the 4000-6000 square-foot spaces that are being filled,” he said.

Apart from commodity traders, medium and small warehouse are rented to store consumer goods and construction materials.

“Most of our customers rent warehouse in Hlaing Tharyar and Shwe Lin Ban industrial zone to be near Bayintnaung commodities centre,” he said.

He said most deals are for annual contracts, at a rental per square foot of about K100-130.

But U Thant Zin, of Khit Thit real estate, said that rental prices and conditions for small warehouses in suburban townships are stable.

“A 1500 square-foot warehouse in Mayangone, Insein, Tarmwe, South Okkalapa or Thaketa township can be rented at the normal rate. Shop owners find small warehouse to store goods. But large investors, like bean and pulses traders and clothing factories like to rent in industrial zones like Hlaing Tharyar, Shwe Pyi Thar and Shwe Lin Ban. Warehouses of 15,000 square-foot asking K1 million rent a month are more in demand than bigger ones asking K2 or K3 million per month,” he said.

“We had inquiries for short-term rentals related to Nargis rehabilitation work last year. But most business renters want annual contracts.”

U Thant Zin Tun, of Yarsu Kyaw real estate, said that although customers were not very interested in buying warehouses, he received regular inquiries about renting medium and small warehouses.

“Most of the inquiries are from bean traders after Thadingyut. The most sought-after categories are warehouses with 6400-10,000 square-foot at about K1 million monthly rent. Consumer business owners prefer warehouses in suburban area to store their goods,” he said.

Real estate agents said they were looking forward to an improvement in the country’s economy in 2010, which would boost their own industry.