Trends
According to the
Night Sky Realty research, the office property market is characterized by a reduction of activity and stability of rental rate level of qualitative office premises in A and B class business centers. The mass migration of tenants, interested in attractive terms of lease for office premises, is past. Consequently, the level of vacant spaces decreased in so-called “flexible” business centers with lower rental rates. The reduction of rental rates is being observed in those office centers where proprietors and managers used to be unwilling to make a concession with tenants on terms of lease. The business centers, situated in city center with good transport accessibility and well-developed infrastructure, have a high occupancy rate.
Rental Rates
The range of rental rate levels for qualitative office premises of A and B class business centers is as follows below:
- А class – 900-2000 RUR/sqm
- В class – 700-1200 RUR/sqm
The discount for major tenants can reach 10-30% of the declared rental rate carrying on the negotiations. “Applying to the consulting companies specializing in the office property market for professional and civilized office rental services, allows our clients to get the most beneficial terms of lease”, noted Nikolay Vasiliev, a head of office property department.
The office space planned to be put into operation, as of the end of 2009
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| Atlantic City | | 128, Savushkina street | | А | | 26900 | |
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| Linkor | | 36/А, Petrogradskaya Emb. | | А | | 17500 | |
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| Atrio | | 22/А, Petrogradskaya Emb. | | А | | 12275 | |
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| Sodruzhestvo, 3rd stage | | 27, Kolomyazhsky prospect | | В+ | | 18780 | |
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| Narvskiye Vorota | | 34, Staro-Petergofsky prospect | | В+ | | 18440 | |
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| Avantage | | 17/2, Beloostrovskaya street | | В+ | | 8000 | |
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| Baltiysky Marshal | | 49, Marshala Govorova prospect | | В+ | | 5350 | |
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| Gulliver, 2nd stage | | 7, Torfyanaya Doroga | | В+ | | 26000 | |
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| Pulkovo Sky | | 12, Startovaya street | | В+ | | 17600 | |
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| Birzhevoy Complex | | 15, 26th Line, Vasilievsky Island | | В+ | | 23100 | |
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| Na reke Smolenke | | 33/A, Smolenki river Emb. | | В | | 14000 | |
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Source: Night Sky Realty
In accordance with the assessments, prepared by specialists of
Night Sky Realty office property department, about 190 000 square meters of A and B class business centers are announces to be put into operation by the end of 2009. The shares of vacant office premises in A class business centers is 33%, B class – 20%.
In compliance with
Night Sky Realty forecast in 2010 about 150 000 square meters of A and B class business centers will be put into operation. The reduction of growth rate of office building in 2010 is stipulated with stoppage of construction works, caused by economic crisis of the world economy.
Forecasts
Taking into consideration unfavorable economic situation in the whole world and excess of supply in the office real estate market, in order to attract tenants to the newly-open business centers the proprietors of vacant business centers will come up against big difficulties, such as increasing the time of exposition and low occupancy rate. The prime location of business centers is a key criterion of tenants choosing an office premise. Dumping rental rates will attract those tenants who accept decentralized location of the business. An individual approach and differentiated rental rates for tenants will be the basic tools to attract tenants to the vacant office spaces.