Office market Q3 2021

Stock

In Q1–Q3 2021 eighteen office buildings were put into operation of the total rentable area 131.8 ths. m2. 63% of the commissioned office space are related to speculative ones (GLA = 83 ths. m2, incl. of Maxidom, Senator at B. Morskaya St., Sobranie 2, Ponomarev Center, Ferrum office centers).

The volume of speculative projects commissioned in the analyzed period is almost twice as high as that of Q1–Q3 2020 .

In Q4 2021, 48 ths. m2 of office spaces are expected to be commissioned (GLA). Speculative supply growth will amount to 47 ths. m2 provided the construction deadlines are met.

Demand

The main demand has been formed by IT companies.

The share of this sector accounted for 26% of the office space leased in Q1–Q3 2021.

The consulting and business services, consumer services and financial sectors of the economy were active in terms of office leasing as well.

In Q1–Q3 2021, demand from the oil and gas sector declined to only 7% (–48% in absolute terms).

The volume of lease transactions in Class A and B office centers in Q1–Q3 2021 went beyond 182 ths. m2. that is +6.2% to the indicator of Q1–Q3 2020.

Occupancy

Insignificant growth in new speculative supply along with a stable level of demand in the market provided reduce of vacant office space as at the end of Q3 2021 (–7.2% vs indicator of Q4 2020).

The average vacancy rate in Class A and B business centers declined by –0.8 p.p. and amounted to 6.7%.

At the end of September 2021, 259 ths. m2 were vacant in Class A and B office centers.

In Class A office centers the vacancy rate increased by +1.4 p.p. by December 2020, and made up 5.6%. 7.2% office space was vacant in Class B office centers (–1.8 p.p. to December 2020).

Rental rates

The average rental rates in Class A office buildings increased by 6.3% compared to December 2020 and amounted to 2,040 Rubles per m2 per month, inclusive of VAT and operating expenses.

The average rental rates in Class B buildings amounted to 1,300 Rubles per m2 per month, inclusive of VAT and operating expenses. In Q3 2021 asking rental rates in class B office center grew by1.6% relative to the price indicator as at Q2 2021.

Maris’ share

17,600 m2 were transacted with the participation of Maris | Part of the CBRE Affiliate Network in Q1–Q3 2021.

Maris for 10 years retains a leading position among international consultants in terms of transacted office space volume.