Renovation changes the concept of commercial real estate

On January 16-18, the annual Gaidar Forum 2018 was held in Moscow to discuss the problems and challenges of Russia's development. Within the framework of the forum, a large expert discussion "New life of big cities: an analysis of risks and solutions" took place. ILM Managing Partner Andrei Lukashev made a presentation on it “The Impact of Redevelopment Policy on Investment Attractiveness of the Territories and Business”   

Renovation has become a significant trend for all major cities in the world. Huge industrial areas get a new life and attract the attention of investors and businessmen. The commercial real estate market in Paris has 3.5 million square meters. m vacant space in London - 3.4 million square meters. m. In Moscow, the figure is 4.2 million square meters. Over the past three years, the volume of new commercial space in the capital has decreased. On the contrary, the areas located in the objects of renovation, are in stable demand. It can be assumed that the experience of cluster development - the global trend - will be successful in Russia. 

Andrei Lukashev cited data on average base rental rates for office space. The comparison was carried out between the "classic" business centers and offices in the objects of renovation. In all classes (B-, B + and A) the rate in reconstructed business clusters is higher than in BC. And in class A, the difference reaches 15,000 rubles. New formats of commercial real estate turned out to be very attractive for large Russian and foreign companies. In general, for 2017, the demand for premises up to 100 square meters in some areas of renovation increased by 30-40%. 

Judging by the trends and development of the market in Europe and America, it becomes obvious to us that the future lies in the new real estate formats. Already, coworking, coliving, joint trading and warehouse spaces; temporary stores (Pop-up retail) are actively fighting for market share. The renovation program will help to meet this demand, at the same time transforming the urban space, making it more convenient and comfortable for life.