In the Q1 2023, the level of development activity was significantly higher than in the same period of 2022. However, speculative projects accounted for only 30% of the gross input volume, and 70% of the new areas were built for the companies' own needs.

In the Q1, the market of high-quality warehouse real estate in St. Petersburg was replenished with 4 industrial and warehouse complexes with a total area of 35 thousand square meters, which is 7 times higher than in the Q1 2022.

In 2023, it is expected to put into operation about 475 thousand square meters of warehouse real estate. 55% of warehouse complexes planned for commissioning are speculative. Subject to compliance with the stated deadlines for commissioning, the total volume of the new speculative offer will exceed the final figure of 2022 by 38%. Taking into account the practice of the market, it is possible to postpone the commissioning of a number of objects announced for the current year.

Warehouse complexes put into operation, Q1 2023

Source: Maris

Demand

The gross volume of transactions in the St. Petersburg industrial and warehouse real estate market amounted to at least 217 thousand square meters in the Q1, which is 24% higher than in the Q1 2022 (including investment transactions for the acquisition of industrial and warehouse assets and transactions under the built-to-suit lease scheme).

The Q1  was characterized by an increase in demand from all sectors of trade and distribution. The demand for production and warehouse space from grocery and non-grocery retail has revived, which was completely absent in the Q1 2022.

The real sector also increased the volume of absorption: in the segment of the non-food sector, demand doubled relative to the indicator of the Q1 2022; demand from the food production sector amounted to 4% of the gross volume of transactions in the Q1 2023, while it was completely absent in the same period of 2022.

In Q1, the average size of the leased block was 5,200 sqm, which was 18% higher than in 2022.

Vacancy

The insignificant volume of the introduction of a new speculative offer and the growth in demand led to a reduction in the amount of vacant space on the market at the end of the quarter.

The volume of vacant space on the market remains at a low level and, according to data at the end of March 2023, the average vacancy rate was 1.6% (-1.1 percentage points compared to December 2022). In total, according to the results of the Q1, about 69 thousand sqm are available on the market of high-quality warehouse real estate.

Rental rates

In the Q1 2023, a reduction in the volume of vacant space and a slight increase in new speculative supply led to a slight adjustment in the requested rental rates. The average range of rental rates is 590 – 780 rubles / sqm per month, including VAT and maintenance payments. Utility costs are paid according to actual consumption.

Congratulations to all involved on this important victory. This is the best award for consultants - professional recognition of colleagues in the market!

Thank you all for your support!

According to Maris analysts, the leasable area of Class A and B office centers in St. Petersburg at the end of the 1st quarter of 2023 amounted to 4.1 million sqm. Among these, the area of Class A business centers is 1,388,300 sqm, Class B - 2,713,400 sqm.

In Q1 2023, eight office buildings were put into operation, with a total leasable area of 49,061 sqm. Of which 88% of the office supply is speculative and is offered for rent. 48% of the gross speculative input fell on Class A office centers, 52% – Class B, respectively. In the first quarter of 2023, the volume of speculative input exceeded the same indicator of 2022 by 8.5 times.

By the end of 2023, developers have announced the commissioning of about 110 thousand square meters of office real estate (leasable area). In the speculative segment, a gross increase in the supply of about 100 thousand square meters is expected (91%). In case of a favorable economic situation, the gross volume of commissioning of speculative office space in 2023, according to preliminary estimates, will be 10% lower than in 2022.

Office centers put into operation, Q1 2023

Source: Maris

Demand

The gross volume of rental transactions in Class A and B business centers in the Q1 2023 amounted to a little more than 40 thousand square meters. Relative to the indicators of the Q1 2022, the volume of demand in the segment of high-quality office real estate decreased by -25.9%.

The leaders in terms of demand in Q1 were enterprises in the service sector for the population and companies in the oil and gas sector and their affiliated structures (18% and 17%, respectively). In absolute terms, the volume of demand from the oil and gas sector increased by 82%. Enterprises providing services to the population rented 41% less office space in three months than a year earlier.

Vacancy

As of the end of March 2023, about 468 thousand square meters are available in St. Petersburg. According to the results of the Q1 2023, the average level of vacant space in high-quality office facilities of class A and B increased by +0.2 percentage points, compared with the same indicator at the end of 2022, and amounted to 11.4 as of the end of March 2023.

The increase in the volume of vacant space in the analyzed period was primarily due to the increase in new speculative supply.

At the end of March 2023, 163 thousand square meters or 11.8% of the space are vacant in Class A office centers (+0.3 percentage points by December 2022). In Class B, the vacancy rate was 11.2% (+0.2 percentage points by December 2022), or approximately 305 thousand square meters in absolute terms.

Rental rates

In the Q1 2023, the St. Petersburg office real estate market showed positive dynamics of price indicators.

According to the results of the Q1 2023, the weighted average rental rate for vacant space in Class A buildings is 2,150 rubles per sqm per month, including VAT and operating expenses, the rate increased by +3.4% (compared to the same indicator at the end of 2022).

The rental rate in Class B buildings is 1,430 rubles per sqm per month, including VAT and operating expenses, the rate increased by +2.1% in the Q1 2023 (relative to the final indicators of 2022).

In 2023, provided that demand activity remains at the current level and relatively low volumes of growth in new speculative supply, the level of requested rental rates will remain stable.

In 2022, the market of high-quality industrial and warehouse real estate in St. Petersburg was replenished with 13 complexes with a total area of 447.1 thousand sqm, which is 79% higher than in 2021. 189 thousand sqm of the new warehouse space introduced falls on speculative projects (2 times more than in 2021). The remaining projects were implemented according to the built-to-suit scheme (53%) or by the companies' own efforts (5%).

In 2023, it is expected to put into operation about 470 thousand sqm of warehouse real estate. The majority (54%) is a speculative offer. Subject to compliance with the stated terms of entry, the increase in the volume of speculative supply will increase by 35% relative to the indicator of 2022.

Large warehouse projects planned for commissioning in 2023

source: Maris

Demand

In 2022, at least 446 thousand sqm of high-quality warehouses were sold on the market, which is 46% lower than in 2021.

52% of the areas were sold on lease terms in 2022. In absolute terms, the gross volume of lease transactions decreased by 40% compared to 2021.

The main tenants of high-quality warehouse complexes in St. Petersburg were logistics companies (51%). The volume of warehouse space sold in 2022 to companies in the transport and logistics services segment increased 5.3 times compared to the results of the previous year. This fact was caused by the emergence of the need to organize alternative supply chains of goods to the country, as a result of which the demand for the services of transport and logistics companies has increased many times.

Companies in the real sector of the economy have reduced the volume of absorption of warehouse space (-64% by 2021). On the part of the trade industry, the volume of demand in annual terms decreased by -82%.

Examples of large warehouse lease transactions in 2022

source: Maris

Vacancy

The growth of new speculative supply and the release of space in the secondary market, along with a decrease in demand, led to an increase in the average vacancy rate in the market for the first time since 2015.

At the end of December, 3.0% of Class A buildings were vacant (+2.9 percentage points in relation to the final indicator of 2021). In Class B warehouse complexes, 1.9% is free (-0.9 percentage points in relation to 2021).

In total, by the end of 2022, about 115 thousand sqm are available on the market of high-quality warehouse real estate (2.7% of the gross volume of supply on the market).

Rental rates

In 2022, an increase in the volume of vacant space and an increase in new speculative supply exerted pressure on the price indicators of the warehouse real estate market in certain locations.

The average range of requested rental rates by the end of 2022 has changed slightly and amounted to 580 − 760 rubles per sqm per month, including VAT and maintenance payments. Utility costs are paid according to actual consumption.

Development forecast

Provided that development activity and demand remain, and the relative stability of the economic situation in the country and in the region is achieved, in particular, the average vacancy rate in the market of high-quality industrial and warehouse premises will continue to grow steadily in 2023: up to 4.5% – 5% of the gross supply volume. Currently, the largest development potential remains with companies involved in the field of import substitution.

According to Maris analysts, the gross leasable area of Class A and B office centers in St. Petersburg at the end of the year is 4.05 million sqm. Among these, the area of Class A business centers is 1.36 million square meters, Class B - 2.7 million square meters.

In 2022, ten office centers were brought to the market with a total leasable area of more than 158 thousand sqm. At the beginning of 2022, the volume of commissioning of speculative projects was projected at around 276 thousand sqm. Thus, by the end of the year, the actual increase in speculative supply was 43% lower than predicted. The commissioning of ten projects was postponed to 2023. The implementation of two projects has been suspended indefinitely.

The most significant event on the market was the commissioning of the Nevskaya Ratusha MFC, which was leased by a monoresident even before the commissioning of the facility (GLA = 47,022 sqm).

For 2023, developers have announced the commissioning of about 145 thousand square meters of office real estate (leasable area). In the speculative segment, an increase of about 129 thousand square meters is expected (-18% by 2022).

Office centers planned for commissioning in 2023

Demand

The volume of office space rental transactions in Class A and B business centers in 2022, according to Maris analysts, amounted to 293 thousand sqm (+16.2% by 2021).

In 2022, almost half of the gross market demand was generated by oil and gas companies (44%). The IT sector has reduced the volume of office space absorption in the St. Petersburg market (-40% in absolute terms).

There was a high level of activity in renting office space from natural monopolies and the state sector of the economy.

Construction companies expanded their presence in the market. A stable volume of demand was observed in the sectors of trade and manufacturing enterprises, logistics companies, services for business and the public.

Examples of large office lease transactions in 2022

*Maris deal

Source: Maris

In 2022, there was an increase in demand for office space in Class A business centers (the volume of leased space increased 2.4 times compared to 2021) and, conversely, a decrease in the absorption of office space in Class B centers (-19.1%). The ratio of classes in the gross volume of demand in the market has returned to the pre-pandemic values.

Vacancy

In 2022, the gross volume of vacant space on the market in absolute terms doubled. The average vacancy rate in Class A and B business centers was 11.2% by the end of 2022 (+5.5% by Q4 2021). At the end of December, about 454 thousand sqm of office space in Class A and B business centers were on display on the market.

The increase in the volume of vacant space was due to the withdrawal of foreign companies from the market, as well as an increase in speculative supply. The pent-up demand accumulated in previous years became a significant support to the market, absorbing part of the released space, and ensured the stability of price indicators.

11.5% of the space is vacant in Class A office centers (+6.8 percentage points by Q4 2021). In Class B, 11.0% of the space remained vacant (+4.8 percentage points to the vacancy level at the end of Q4 2021).

Rental rates

The weighted average requested rental rate for vacant space in Class A buildings at the end of 2022 is 2,080 rubles per sq. m. m per month, in Class B buildings – 1,400 rubles per sqm per month, including VAT and operating expenses. Compared with similar indicators at the end of 2021, the requested rental rates in Class A business centers decreased by -2.8%, in Class B there was a positive correction of +0.7%.

In 2022, there was an unprecedented increase in the activity of both investors and end users in the office real estate purchase and sale market. In 2022, more than 150 thousand square meters of high-quality office space were sold on the market for an amount exceeding 17 billion rubles. Thus, 2022 broke the previous investment record of 2017.

Alexander Solokhin, Head of Prombox Commercial Service, comments on the deal: "The construction of the facility took 9 months. Permission to enter was received in August 2022. To date, 85% of the area has been sold — this is an excellent indicator for the market. There is confidence that most of the areas, speculative projects, can be implemented before receiving permission to enter. The sale of 2,600 sqm has become one of the largest in the implementation of the 1st stage of the Prombox project."

Prombox is a production environment for the placement of modern and progressive production facilities and warehouses in the Leningrad region. The facility at Shushary is a new, modern high-tech production and warehouse complex of the Light Industrial format, the total area of the complex is 11,088 sqm. The complex can be divided into blocks, where each is completely autonomous: it has its own administrative and household premises, its own entrance groups, loading/unloading gates, a system of accounting and management of engineering systems, a gas boiler, energy resource limits, parking spaces.

Andrey Kuzminich, Senior consultant industrial Department of Maris, comments on the transaction: "The object had to be found quickly enough in connection with the redevelopment of the current site. In addition to the deadlines, the location and energy capacity of the site became important criteria. After viewing several options, the choice was stopped at a Class B production and warehouse facility in the southwest of St. Petersburg, which fully met all the technical parameters of the client."

"This year TRIALLI is carrying out a large-scale expansion and plans to launch a new site for the production of automotive components. The assembly line will be equipped with modern metalworking machines, which is being built in accordance with international standards of quality and production efficiency. We are focused not only on import substitution within the country, but also on the European market. I am sure that the new production site will help us to implement all our plans," Kirill Shipota, Executive Director of TRIALLI production, comments.

Svetlana Movchan, deputy head of Office Real Estate Department, comments on the deal: «It is a rare case when several hours have passed from the moment of the first show to the decision of signing the lease agreement. The tenant needed a decorated office in Moskovsky district with possibility of prompt arrival. Ponomarev provided the necessary offices in terms of square footage, having fully satisfied the client's request».

Ponomarev Center Tipanova – class A business center, located in 15-minute walking distance from Moskovskaya metro station. It includes modern engineering systems and the finishing is made of high-quality natural materials. An operational terrace on the floors and on the roof is a distinctive feature of the building. Total area of building – 15,000 sqm, leasable - 7,797 sqm. 

 Svetlana Movchan, deputy head of Office Real Estate Department, comments on the deal: «The tenant planned to move some departments of the company to a modern office. In shortlist of Elcom were lots of office centers, but Fidel met all the requirements: office with furniture, designer renovation, spacious parking, walking distance to metro. The delivery of Fidel in 2022 was very indicative. The anchor tenant - IT company - moved out of the building in spring, that made free most of the premises, to be exact 6,500 sqm. But by the time the lease agreement was signed by Elcom, the vacancy of the business center was only 10%, since high-quality offices with finishing quickly found their customers».

 Fidel is a business complex located in the industrial part of Nevsky district. The red brick building was built in the 19th century. After reconstruction in 2009, the building was turned into a class B+ business center, at the same time preserving the atmosphere of industrial buildings of that time. Now comfortable offices decorated in loft style are located here. The location of office center has  good transport accessibility. Yelizarovskaya Metro Station is within 7-minute walking distance. The business center offers panoramic views of the Neva River. Ground parking in front of the business center has 215 car spaces.

Nevsky, 68 is class А+ business center in the heart of St Petreburg, 6 floors of offices with a view of Nevsky Prospect and Fontanka River. The first floor is equipped with large display windows. Office center on Nevsky, 68 was renovated by the Group in 2015. A combination of historical look and innovative interior is provided thanks to the best engineering decisions. The house belongs to the examples of Soviet neoclassicism and is an integral part of the "postcard" of St. Petersburg landscape.

Elena Kashuntsova, deputy head of Office Real Estate Department, comments on the deal: «The current offices of this tenant are located in the immediate vicinity of new premises. A distinctive feature of this facility is that it is a detached building with its own ground parking for 30 cars. We have received a high-quality and positive experience of working with both sides, it's nice when the participants of the transaction want and can agree on everything».

Office building on Levashovsky Prospekt – class В object in Petrogradsky district is located within walking distance to Chkalovskaya metro station. Building has modern finishing, ready-made zone for eating, meeting rooms and office layout, providing the opportunity to host numerous departments of tenant’s company. The facility is equipped with a fire alarm system and air conditioning, supply and exhaust ventilation. The office building has a convenient infrastructure: within walking distance of an elite fitness center, three large business centers, hypermarkets and beauty salons.

Julia Vorobyeva, senior consultant of Global Corporate Services and Sales Department, comments on the transaction: « The client planned to open a section of the clinic in St. Petersburg. Premises on Shvedsky 2 became the best offer, taking into account location, layout and readiness to accept a tenant in the field of medical services».

Shvedsky 2 is a class B+ business center well located and high-tech equipped. Windows overlook the central streets of St. Petersburg and a walking zone between Malaya and Bolshaya Konyushennaya streets. The building was renovated in 1999 surrounded by cultural heritage sites, but, at the same time, it has a sufficiently developed infrastructure. On its territory there are cafe, restaurant and beauty salon.

The number of commissioned apartment complexes in St.Petersburg and Leningrad region totals to 92 projects for 27,844 units as at the end of September 2022. In January-September 2022 17 apartment complexes were put into operation. In total market was replenished with 6,073 units.

Apartment complexes introduced in St. Petersburg for 9 months of 2022

Source: Maris

As on the end of Q3, apartment complexes for almost 19,600 units (more than 770,000 sqm) were at the stage of construction. Comfort class apartments occupy the largest share in the market structure. Compared to the business and elite class, they are more ambitious in terms of the number of units. Moskovsky and Vyborgsky districts are leading in terms of the unit’s volume of entered. Nevsky and Moskovsky districts of the city are leading in in terms of the buildings under construction.

4.4 ths units are planned to be put into operation in 17 complexes by the end of 2022. With a high degree of probability, the deadlines for the commissioning of some projects will be postponed to 2023.

Apartment complexes to be commissioned in Q4 2022

Source: Maris

In January-September 2022, 17 projects of apartment complexes for a total of 7,312 units were put on sale.

 Demand

In January - September 2022 2,318 units were sold in St. Petersburg, that is 40.4% less compared to the same period in 2021.

Price dynamics

Average price growth for Q2 2022 in St.Petersburg was +6.3% relative to Q2 2022 and + 20,5% at the start  year.

Ponomarev–center – class A business center in the center of St. Petersburg. The offices are located in two five-storey buildings reconstructed in modern business buildings built in 1894. The business center is located within walking distance from the Admiralteyskaya metro station. Nearby is Nevsky prospect, Moika river embankment, Bolshaya Morskaya street. Semren&Mansson the Swedish company was engaged in the development of the concept and design of premises. The business center offers its tenants modern engineering systems, also progressive means of communication, the complex has a video surveillance system and a security and fire alarm system.

For 9 months market of quality industrial and warehouse real estate in St. Petersburg was replenished with 7 complexes with a total area of 171,429 sqm, which is 26% lower than Q1-Q3 2021. However, if last year, the increase was provided mainly by industrial and warehouse complexes built according to the built-to-suit scheme, then this year - mainly by speculative objects. Thus, the volume of the introduction of speculative projects in the first nine months of 2022 exceeded the indicator of the same period last year by 70%.

About 400 ths sqm of warehouse facilities are to be put in operation by Q4 2022. 39% of the properties are related to speculative supply. The total volume of new speculative offer will exceed the final figure of 2021 by 2.4 times, subject to compliance with the stated terms of commissioning.

Warehouse projects, planned to be commissioned in Q4 2022

Source: Maris

Demand

During Q3 2022, at least 296 ths sqm of high-quality warehouse space were sold on the market. Activity mainly focused on expanding the presence of major market players in the region. In January-September, the gross volume of transactions in the industrial and warehouse real estate market was 49% lower than in the same period of 2021.

63% of the areas were leased out in Q3 2022. In absolute terms, the gross volume of industrial warehouse lease transactions is 28% lower than the same indicator last year.

The leading positions in the gross volume of demand in Q3 were occupied by transport and logistics companies (59%). The volume of warehouse space sold to logistics companies on lease terms increased 5 times in nine months compared to the results of the same period in 2021.

The real sector of the economy has slightly reduced the volume of absorption of warehouse space, in contrast to the second quarter of 2022. According to the results of three quarters, manufacturing companies leased 46% less capacity than in Q1-Q3 2021.

Vacancy

The growth of new speculative supply and the release of space in the secondary market, along with a decrease in the volume of demand, led to an increase in the average vacancy rate in the market for the first time since 2015. The average vacancy rate was fixed at 2.6% gross supply volume in the region (+1.8 p.p. to December 2021 indicator).

According to Q3 results the vacant rate in the class A warehouse complexes increased by +3.0 p.p. (compared to December 2021) and was 3.1%. In class В vacant rate decreased by –1,5 p.p. compared to Q4 2021. Average vacancy is 1.2%.

In total 100,000 sqm are vacant on the market of high-quality warehouses for the results 3Q 2022. (excluding the areas offered for sublease).

Rental Rates

2021 was characterized by an unprecedented increase in the requested rental rates in the industrial and warehouse real estate market of St. Petersburg - +17.6% in annual terms

The increase in the volume of vacant space and the increase in new speculative supply exerted little pressure on the price indicators of the warehouse real estate market in January-September 2022. So, the rates level saves achieved points at the end of 2021.

The average range of rental rates is RUB 550 – 800 sqm per month, including VAT and operating expenses. Utility costs are paid according to actual consumption.

Development forecast

Provided that the development activity and demand remain, and the relative stability of the economic situation in the country and in the region is achieved, in particular, the average vacancy rate in the market of high-quality industrial and warehouse premises may increase slightly in 2022: to 4% - 5% the gross volume of the offer.  Such indicators of the volume of vacant space are uncritical for the market, experienced a permanent shortage of quality supply for a long period of time.

In such a scenario, a slight negative correction of the requested rental rates is likely to be observed in Q4.

Currently, the largest development potential remains with companies involved in the field of import substitution.

According to Maris analysts, as at the end of Q3 2021 total rentable area of Class A and B office centers in St Petersburg made up 3.95 mln sqm. Among them: class A business centers made up 1.31 million sqm (33%), class В – 2.64 mln sqm (67%).

The leasable area of office centers is the difference between the total area of the building and the gross area of common areas and the premises of the engineering and technical service of the business center (technical premises, corridors outside the office blocks of the closed perimeter, elevators, back rooms, sanitary facilities, halls, lobbies, entrance groups, security and management company premises).

Five office centers were brought to the St. Petersburg market with total leasable area of 59,550 sqm during the first nine months 2022.

For Q4 2022 developers announced the commissioning of about 123 thousand sqm of speculative office real estate (leasable area).  

Big projects, planned, to be commissioned 2022 end

Source: Maris

Demand

Gross volume of rental transactions in class A and B business centers in the first 9 months of 2022 made up at least 196 ths sqm and by 7.7% exceeded the indicator of Q1-Q3 2021.

Relative to Q2 2022 indicator level of demand for office space increased by 25% in Q3 2022. It should be noted that the increase in demand occurred mainly in the segment of class A office centers.  High-quality office space with good finishes was released on the market, in some cases even furniture remained from previous tenants.

All this led to the realization of deferred demand, which remained unsatisfied for a long time. Some office centers at Q1-Q2 2022 declared full or partial liberation of their areas, however by the end of the Q3, many large facilities have found new tenants. Thus, Elezavetinsky business center (12,000 sqm) was leased out to mono tenant, Graffiti business center (7,500 sqm) - to two large tenants, Fidel business center (7,300 sqm) - for three new tenants.

The leading positions in the volume of demand were taken by companies in the oil and gas sector and the service sector with 34%. The IT sector reduced the volume of office space absorption in Q3 2022 and according to the results of three quarters the share of this sector in the gross volume of demand was 15%.

In the analyzed period, the volume of leased office space by construction companies doubled. There was a 20% increase in demand for office space from enterprises in the field of trade and 16% – service companies, respectively. Demand from the financial sector, on the contrary, decreased by 2 times compared to the indicator of the same period in 2021.

Big projects, planned, to be commissioned 2022

* The broker of the transaction – Maris.

Source: Maris

* The volume of transactions is estimated by Maris consultants based on the data, obtained from open sources (mass media, press releases posted on the websites of office centers), as well as information provided by the management companies of business centers.

Vacant  

According to the results of Q3 2022 the average level of vacant space in high-quality office facilities of class A and B has increased by +3,3 p .p., compared to the same indicator at the end 2021, and was at the end of September 2022 – 9%.

At the end of Q3 in class A office centers 122,600 sqm or 9.3% spaces are vacant (+4.6 p.p. to December 2021). In class B the vacancy rate was 8.8% (+2.6 p.p. to December 2021), or 233,200 sqm in absolute terms.

The leader in the growth of vacant space became Kalininsky district (+37,400) in Q3 2022, mainly as a result of the commissioning of Ferrum 2 business center. On the second place in terms of the increase in vacant space –Moskovsky district (+16,500 sqm or +22%). The share of this district accounts for the maximum number of empty office space 26% of the gross volume of vacant space on the market.

Rental rates

The average rental rates at the end of September in class A office centers amounted to 2,030 RUB per sqm per month, inclusive of VAT and operating expenses. The rental rates in class B office centers amounted to 1,400 RUB per sqm per month, inclusive of VAT and operating expenses.

Development forecast

Only due to the influence of the geopolitical situation in the region, according to optimistic estimates, about 50-70 ths sqm of office space will be released on the market in Q4. So, the vacancy rate on the market will increase to 11% – 12% of the gross market volume, which in principle is not a critical value for the St. Petersburg office market.

The further development of events will depend on many factors: methods and the period of resolution of geopolitical conflicts, the speed of economic recovery, landlords' policies regarding the settlement of disputes with current tenants.

According to Maris analysts 87 coworking centers operate in St. Petersburg in the format of offices and business incubators as at the end of Q3 2022. Majority of serviced offices are located in the central district of the city - 52% of the gross volume. Leaders are still the same: Central districts – 28%, Petrogradsky district – 9%, and Admiralteysky district – 9%. We have seen a gradual process of decentralizing the offer.

The market of flexible office spaces has been replenished with eight objects with total capacity of more than 740 working places in Q3 2022, that is comparable to the volume of market growth in Q2 2022. The opening of the LIIS-PAGE coworking (357 working places) and the SMART coworking in Vasileostrovsky district (280 working places) took place.

So, gross supply of workplaces in flexible offices in St. Petersburg has increased by 30 % since the beginning of the year.

Rental Rates

Rental rates in serviced offices is settled depending on the period and type of placement. According to experts of Maris the results of first 9 months requested rental rates were multidirectional. Short-term rates demonstrated the trend of growth (+3%–5%), while long-term rental rates (per month) showed stagnation or a slight negative correction, depending on the type of rented workplace.

The cost of renting a fixed workplace in September ranged from RUB 6,500 to RUB 34,000 per month. Average tariff – RUB 13,600 per month: flexible place: RUB 4,900 – 26,000 per month, average tariff – 10,800 per month (–6.6% to Q4 2021). Daily tariff of workplace was from RUB 500 to 1,600 per day (+2.7% to Q4 2021) at the end of Q3. Growth of the offer of serviced offices by subscription system (the number of visits for a certain period of time) continued on the market.

According to Maris consultants the opening of 4 new coworking spaces and the expansion of 1 existing KAZANSKAYA PAGE coworking have been announced by the end of the year. In total the volume of the offer will increase by 1,150 places, provided that the relatively stable economic situation is maintained.

Lidia Pashnova, head of Graffiti office center rent department comments on the deal: «For us this transaction was both interesting and difficult. It was necessary to agree on the terms of the transaction, re-equip and prepare the premises in accordance with the requirements put forward by the tenant as soon as possible. But despite the very limited time, we managed to complete almost all the planned work on time».

Graffiti is a modern В+ office  center on the territory of Kondratievsky business zone on Kondratievsky avenue 15, which includes three high-class office centers with a total area of more than 45,000 sqm. Convenient transport links with major highways allow to quickly and comfortably get to the city center. More than that there is a metro station Ploshad’ Lenina close by.. Business Center has underground parking for 45 car places, and spacious parking lot on the territory. The interior solutions of the business center reflect the entire history of graffiti art from rock times to 3D graphics. The upper floors have panoramic views of the Neva River and Smolny Cathedral.