Perhaps, lately, this is the most frequently asked question for our company consultants. Everyone is worried about the instability of the Russian economy and its dependence on the political situation, which has an impact on all spheres of life. Does the increase in the exchange rate affect the rental rate? Of course. Another question is how important it is. Today, the Moscow office real estate market is in short supply of high-quality “A” and “B +” class office premises, which have been in great demand in the last couple of years. This trend leads to an increase in rental rates in such premises. According to analysts, the rental rate in high-quality premises by the end of 2019 - early 2020 will increase by 15-20%. This trend leads to a return to the “owner’s market”. It is necessary to allocate a separate category of premium objects of class "A", owned by large, often foreign owners, they still have foreign currency rental rates. Of course, such objects are subject to the influence of foreign exchange rates. But for the peace of both parties, lease agreements with these business centers imply fixing the exchange rate, usually with a currency corridor method (fixed minimum threshold of currency value and maximum) with a validity period for the entire contract period, which gives a guarantee to the tenant that is more than a certain amount he will not spend on rent. An important impact on the rental rate has a law. A couple of years ago, property taxes began to be charged not on the basis of the book value of the property, but on its cadastral price. This led to an increase in the tax burden in low-quality premises located in sought-after locations. The increased financial burden of the owner has led to an increase in the rental price in these premises. Let's sum up. At the moment, the change in the exchange rate that shook Russia a couple of weeks ago had no effect on the office real estate market, in which the rental rate is fixed in ruble terms. However, the cost of renting in quality premises of class “A” becomes higher due to the lack of vacancies in them. Tenants should hurry to find a new office, as high-quality areas leave the market every day, and new construction is expected to be at a record low in the last 4 years.

The topic of fire safety was again widely discussed among experts, owners of shopping centers and architects after the tragedy in Kemerovo, which according to the latest data, killed 64 people. The partner of Strelka Design Bureau, a well-known urbanist Grigory Revzin, has pointed out the dilemma between marketing techniques and compliance with safety standards in shopping centers. He lamented the fact that, from the point of view of trade, it is important that exits from the shopping center were not visible - everything is designed to slow down the movement and increase the stay of potential buyers in the building. In addition, according to Revzin, three different security protocols collide with each other. "Fire requires a maximum evacuation speed and maximum number of exits. But the antiterrorist security protocol requires difficulty to enter and check every incoming one. And the anti-theft protocol requires difficulty to exit, slow down the exit and the ability to check. Hence, from the point of view of the safety of people and goods, exits simply can not close. They are closed everywhere, "- says the post urban. However, all the rules of both fire and antiterrorist security are strictly regulated by law and thought out. Therefore, the idea of ​​restricting access to the premises by itself does not go against the requirement not to block emergency exits, says Konstantin Baranov, director of the department of Property management at ILM. The problem in this case most often occurs at the stage of execution of this rule. “It’s easier to close the door with a key than to install a couple of guards who will prevent unauthorized people from entering the building,” the expert states. Read more RIA News: https://realty.ria.ru/analysis_trends/20180329/1517522006.html

ILM met the first day of spring at a business breakfast for real estate and construction companies. The event is organized by KPMG, the leader of the Russian audit services market. The main topic of the event was a discussion of key trends in the real estate market, summing up the results of 2017 and their impact on the book / fair value of real estate objects, as well as the application of Digital technologies in real estate based on practical cases. In the first session, ILM managing partner Andrei Lukashev spoke about what was happening in the Moscow office real estate market in 2017, and shared expectations for 2018. In total, 380,000 office space was introduced in 2017, which is 9% more than 2016, and the total net absorption amounted to 980 thousand square meters. m, which is more than two times higher than in 2016. The main trend of 2017 was the increase in the number of transactions with an increase in the occupied area. Net absorption exceeded the volume of new construction by 2.5 times, which led to a decrease in the level of vacant space. As of today, 2.5 million office spaces remain unoccupied. In 2017, the average rental rate in class A decreased by 2% and amounted to 25,000 rubles per sq. m.. in year. In 2018, the rental price will not change significantly. The average level of rates may vary depending on withdrawal from the market of cheap offers. In turn, the shortage of large office blocks in sought-after areas may also affect the growth of rental rates in individual submarkets. The situation on the market is aggravated by low developer activity. In 2018, according to our forecasts, about 300 thousand sq. m.. m, which may be the minimum value over the past ten years, this is facilitated by the fact that the owners postpone the commissioning of the objects already under construction, waiting for anchor tenants. A number of business centers previously announced for commissioning in 2018 postponed the dates to 2019-2020. The practice of built-to-suite is gradually returning to the office market. Construction of new facilities expected to be commissioned can be completed for a specific client.    It is becoming more and more difficult for large companies to find a high-quality office. Taking into account the shortage of large areas and the lack of new offers, the activity of tenants in the office segment will increase. In the years 2019-2020. For tenants of large areas, conditions may arise when the owners will “dictate” the terms of the lease. Part of the owners against the background of stabilization of demand and reduction of vacant space will gradually increase the rental price, this suggests that the rental market will again become the “owner market” rather than the “tenant market”, as happened in 2014. The market is cyclical, the price bottom is reached, the next stage will be an increase in the growth of rental rates.