Office market H1 2021
Offer
According to Maris analysts, as the end of H1 total rentable area of class A and B office centers in St. Petersburg made up 3.83 mln sqm. Among them: class A - 1.25 million sqm, class В – 2.58 mln sqm.
In H1 2021 eighteen office buildings were put into operation of the total rentable area 94,187 sqm.
48% of the gross increase in high-quality office real estate in H1 2021 refers to a speculative offer. The volume of speculative projects commissioned during the analyzed period is almost identical to the H1 2020 indicator (+6.6%).
In 2021 developers announced the commissioning of about 185 ths. Sqm of speculative office real estate (leasable area).
Demand
The volume of lease transaction in class A and B office centers in H1 went beyond more 120 ths sqm. According to H1 2020 (period before coronavirus) demand in the class B office real estate segment retained volumes (+1.3%). Q2 2021 has become a record in terms of leased office space in class A and B business centers over the past 1.5 years exceeding even the previous record holder – Q1 2020.
In Q2 demand which was formed in 2020 continued to grow in class B office space segment. According to H1 the volume of transactions concluded in class B office centers has increased by +15%. The indicator for class A offices has reduced by 30%.
In H1 2021 more than a quarter of gross volume of demand on the market was formed by companies in the IT sector. In H1 IT sector rented 20% less office space than last year.
In H1 2021 the number of transactions with office premises with an area of less than 1,000 sqm .In class A business centers segment, indicator increased by 29 p.p and amounted to 75% on the total number of transactions in the segment. In class B office centers the increase was 10 p.p. The indicator reached the level of 83% of the total number of transactions in the segment. The trend towards reducing the size of occupied office space, which began in 2020, continued. The absolute number of transactions in H12021 was 24% higher than in H1 2020.
Vacancy
According to experts from Maris, as of the H1 results the average level of vacant space in high-quality office facilities of class A and B decreased by –0.6 p.p. compared with the same indicator at the end of 2020 and reached 6.9%. 266 ths sqm remain vacant on the market. Vasileostrovsky district became the leader in growth of vacant space in H1 of the year, mainly due to increase in new speculative supply (Maxidom business center, GLA = 24,500 sqm).
Rental rates
The weighted average requested rental rate for vacant space in class A buildings at the end of H1 2021 is RUB 1,990 per sqm per month, including VAT and operating expenses (+3.6% comparing to December 2020). The rental rate in class B buildings is RUB 1,280 per sqm per month including VAT and operating expenses (-2.3% by December 2020). The increase in requested rental rates was observed in the central business zone of the city.