On September 21, 2017, the international law firm Noerr and the magazine Legal Insight held a business breakfast on the topic: “Lease of commercial real estate: rate on increase”, gathered more than 50 lawyers from major Russian and foreign companies in the retail, development, industrial production, etc. Against the background of a moderate growth rate of the Russian economy, 2017 has become quite dynamic and positive for the commercial real estate market. For market players it becomes obvious that now we can talk about its gradual stabilization and recovery after the crisis of 2015-2016. In this regard, lawyers of companies should “check watches” with current changes in legislation, to adjust existing own rental relations, to give management the necessary recommendations for strategic planning. Yuri Yudakov, director of ILM, a consultant in the field of commercial real estate, spoke about the current situation in the real estate market, in particular, warehouse and retail, shared macroeconomic forecasts and professional recommendations for choosing office space. The reports of the experts in the “Real Estate Investments” practice of Noerr were as practical as possible with useful links, recommendations and formulations based on their own experience and analysis of judicial practice. Asiya Takhtaeva, a senior lawyer at Noerr, on the example of a lease agreement, highlighted in detail the current changes in civil legislation and the nature of the development of judicial practice on controversial issues. Ekaterina Kalinina, a senior lawyer at Noerr, shared her recommendations on what is imperative to pay attention to when concluding rental agreements, taking into account the new rules for corporate approvals and registration, as well as recent trends in negotiating rental rates. Very interesing was the discussion of the case "Svyaznoy Logistics vs Warehouses 104". The invited guest was the lawyer of Svyaznoy Logistics, A.V. Taraburin. For the discussion on the controversial case, the organizers chose an interesting interview format, in which the representative of the plaintiff, answering questions from Noerr colleagues and business breakfast guests, spoke about the details of the case and justified the position of his client. Summing up the discussion, the head of the practice, Dr. Thomas Mundry, expressed the opinion that “having worked in Russia for 25 years,” he “observes positive trends in the introduction and use of best foreign practices in Russian law” and expressed hope “for further modernization of civil legislation” .  

Revaluation of the cadastral value of commercial real estate has become relevant due to changes in the Tax Code in 2014. In accordance with the current legislation, the tax on commercial real estate of legal entities is now calculated on the basis of the cadastral value of the object. Since this method of calculating the cost of space is not accurate and usually overestimates the real price by 20-30%, the question arises as to how to remove the unreasonable monetary burden from the business. The only one way out is to challenge the cadastral value of the object. Is it worth it? Before entering into long financial and legal debates, it is worthwhile to weigh everything thoroughly and calculate how much the influence of the tax burden on the company's budget is and by what amount it is possible to reduce. Information about the cadastral value of the object can be found using a paid service on the information portal of the Unified State Register of Real Estate (USRN). With a slight difference (7-10%), starting this does not make sense, since the cost of the resources expended will be higher than the profit gained. The budget for challenging the cadastral value is formed of several components: market valuation, legal advice and forensic expertise. Even with a positive decision in favor of the owner, the costs are not reimbursed. The difference in previously paid taxes is also not refundable. Court or Rosreestr? The owner has the right to choose in which of the state bodies to file an application for revaluation of the cadastral value - is can be either directly the Rosreestr commission or the territorial court. Statistics show that the number of decisions in favor of the owner in court is much more weighty. This is partly due to the interest of Rosreestr in additional revenues to the budget, the court is usually impartial. Time is not only money, but also taxes If it was decided to challenge the cadastral value of the property, it is necessary as soon as possible to collect all the necessary papers and start the process. The tax is calculated on the basis of the price that has been set in the current year, i.e. if the owner filed a lawsuit at the beginning of 2017, he will pay the tax at the price set in 2016. It is possible that legal proceedings may take several months, so efficiency, in this case, is definitely the main advantage. A stingy owner pays twice A significant role in the consideration of the case in court will be played by the market valuation, or more precisely the quality of the examination carried out. Even minor inaccuracies in the documents may cause the court to refuse to revise the cadastral value. Therefore, it is necessary to carefully and thoughtfully choose a company-appraiser, and it is better not to save money on its services. Word of mouth in this case will tell you which company is better, because even with an abundance of companies in this appraisal segment, their reputation is usually well known among owners. The speed of response, the quality of market expertise and legal advice play a crucial role in the reassessment. Do not hesitate and trust the professionals, then cadastral bondage will be left aside.  

The price of a commercial property is a specific thing. It is formed not from abstract categories, but from certain criteria: type of construction, quality of repair, planning, infrastructure, transport accessibility, improvement of the territory, prestige of the area. The higher the quality of the object, the higher the price, and there are no objective reasons to reduce it. Therefore, the proposal to rent an office in Moscow-City at the price of a room in the old administrative building is at least suspicious. We list the main points that may affect the pricing of the rental rate.  Poor transport accessibility The office is a place of constant circulation of employees and customers. It should be accessible and convenient. The road from home to office and back should not turn into an extreme journey. The proximity of metro stations, public transport stops, and road junctions is a significant advantage, which, of course, will not get to the tenant for free.  Lack of parking Another problem that lies behind the low rent - parking spaces. Paid parking or, in extreme cases, its absence will require additional cash injections above the rental rate. Moreover, if the problem with payment of parking spaces can still be solved, it is hardly possible to make up for their absence. Operating costs The rental rate in fact only the nominal figure. The real costs of maintaining the office will actually be somewhat higher. As a rule, operating costs are not protected in the lease agreement. The tenant pays utility bills, which consist of payments for hot and cold water, electricity, gas and heating. A separate item of expenditure is an Internet provider, which may turn out to be a monopolist and request an exorbitant price for its services. Preliminary acquaintance with the invoices paid by tenants will help solve this problem and estimate in advance what the actual costs of renting an office will be. "If you already swept away all the most depressive rent options and at first glance found a quality office, find out the size of operating costs," says Ekaterina Volkova, director of the ILM market research and analysis department. "They may be higher than you expect for a number of reasons. First, the building may be the only and expensive Internet provider. Usually such a provider, like the management company, is affiliated with the owner of the object. Such a situation is most common at class C facilities. Utility payments may be billed separately, and their size will be different every month, specify this nuance in advance, ”says Ekaterina.  Repair quality How much it will cost to repair, at best - finishing, office space - another serious question. The current roof, cracks in the walls, problems with engineering systems can cost as much as the nominal rental rate. Unfavorable infrastructure The proximity of the business center to industrial areas or landfills significantly reduces its cost, and, accordingly, the price tag for the rental of vacant space. The view of the wastelands and the exorbitant concentration of pollutants in the air do not contribute to the creation of a comfortable working space. Pricing policy in the commercial real estate market is quite logical, the more comfortable the room, the higher the rate. Renting an office for a nominal fee, be prepared to take along with the room and his problems.