Moscow. October 9th. INTERFAX.RU - The volume of transactions in the office real estate market in the capital has reached a minimum over the past 14 years, the consulting company JLL reported on Friday.
“The volume of lease and purchase and sale transactions concluded in the third quarter of 2020 in the Moscow office market decreased by more than 2.5 times compared to the same indicator in 2019 and amounted to 149 thousand square meters. m. This is the minimum quarterly value since 2006 ", - said in the message.
Analysts note that in general, for nine months of the year, the volume of transactions with offices reached 622 thousand square meters. m, but at the end of the year for the first time since 2009 will not exceed 1 million square meters. m.
Large companies come to Moscow City
“Small companies that rented space in class B +/- business centers, due to worsening economic conditions, began to reduce rental costs and abandon the occupied space. Some large companies renting more than 5 thousand sq. m in high-quality buildings in premium locations, due to the transfer of some employees to remote work, they are also trying to optimize rental costs by offering part of their premises for sublease, ”said Vladislav Fadeev, Head of Research at JLL.
According to experts, the largest share of office transactions in the third quarter of the year was made by companies providing business services (60% of the total). Service companies (11%), banks and financial institutions (10%) also participated more actively in transactions than others.
Analysts added that the volume of lease deals in flexible spaces (office spaces with the ability to quickly transform to meet the needs of the company) has grown in Moscow. A total of 18 thousand sq. M were rented in the third quarter. m of such areas.
The largest deals were Sberbank's lease of a flexible office from the Manufaqtury operator in the Poklonka Place business center and the lease by the FGC development company of flex space from the Space 1 operator in the Midland Plaza business center on Stary Arbat.
“Given the growing demand for service offices and hybrid spaces, network operators continue to actively open new sites. So by the end of 2021, about 60 thousand square meters were announced for opening. m of new flexible offices, and another 82 thousand square meters. m of space was announced in built-to-suit format (construction according to client's requirements - IF) subject to the presence of a tenant, ”the experts noted.