Yakov and Partners experts have looked into the present and future of industrial infrastructure development in modern megacities using Moscow as an example. According to the study “Cities and developers: synergies to create industrial infrastructure of the future,” profitability of some industrial infrastructure projects may reach 25%–35%. This makes industrial construction one of the most profitable segments in commercial development, the experts believe.
Seeking to ensure strategic diversification, developers turn to industrial formats ranging fr om light industrial sites to multifunctional technology parks. The transition is supported by a number of municipal incentives such as preferential rates for land leases, reduced tax burden, and access to priority investment programs. One of the most remarkable examples is Moscow’s job creation program that allows developers of residential apartment buildings to make payments required to change the designated land use to residential at a reduced rate, provided that their new buildings would create jobs, including at industrial facilities. This approach stimulates private investment in the segment.
Moscow has become an example of how a city can transform its strategic approach to industrial infrastructure development. The capital city is creating a pool of land and providing a number of assistance measures ranging fr om tax and lease incentives to support for large-scale investment programs, while developers are building the new generation facilities the city needs. Synergies between public authorities and businesses lead to the emergence of a new type of urban industry – a high-tech, eco-friendly sector integrated into the city’s social fabric”
Anna Danchenok, Partner at Yakov and Partners
In this context, Moscow and other megacities have been actively adopting mixed-use zoning, integrating industry into the urban environment. Residential housing, social facilities, and service infrastructure already account for up to 15% of the industrial parks’ area. This transformation of industrial development combined with space-efficient formats fosters a harmonious integration of industrial facilities into the urban environment. Such facilities both create jobs and stimulate the development of new urban spaces, wh ere instead of being located outside of city boundaries, industry is a “good neighbor” to residential districts.
Thus, industrial infrastructure provides the foundation for sustainable urban development, drives economic growth, and solidifies technology leadership, the experts say. There are successful examples of this development model in international practice: Singapore and London have been implementing a spatial development policy based on master plans and strategic industrial zones. Moscow has been steadily following the same path. The city has already created 390 hectares in the Technopolis Moscow SEZ and more than 1,000 hectares in the manufacturing clusters of New Moscow.
At the same time, the experts highlighted a significant shortage of high-quality manufacturing facilities, as the vacancy rate in Moscow is below 1%. This is one of the lowest rates among megacities. In Beijing and Singapore, it is about 10% – a healthy level for the industrial market. Combined with steady demand, this shortage of spaces leads to a rapid emergence of new formats.
Special attention is given to the light industrial format, which unites manufacturing, logistics, and office functions. In 2025–2026, the capital city plans to build about 700,000 square meters of light industrial property, and another 2.7 million square meters are in the planning phase. Other trends that are growing in popularity across major cities globally include multi-story and underground warehouses and vertical farms, as they provide sustainable manufacturing capacity without the need to expand city boundaries.
“New types of facilities have proven to be highly adaptable to shifting market conditions. They are both an economically feasible tool and an important step toward a harmonious urban environment, wh ere industry is well integrated into the city, enhancing its stability and innovation potential without disrupting the balance”
Natalia Kuvaeva, Senior Expert at Yakov and Partners
