Office

The pace of new construction continues to decline, the timing of the introduction of an increasing number of objects transferred to later periods. From January to October, the market was introduced 530 thousand square meters. m, which is 45% less than the same period last year.

The net absorption rate over the past three months increased by 76 thousand square meters. m and because of this out of the negative zone. The increase in absorption in high-class facilities and the release of premises in the class B- indicate a continuing trend to improve the quality of occupied space.

During the year, was introduced 350 thousand square meters. m of office space, which is less than half of the volume of new construction last year. The indicator has reached a record low in the last 10 years on the Moscow office real estate market. Due to the restriction of attracting funding for new projects and the postponement of the commissioning of a large number of objects, in the next two years the market will be replenished mainly by buildings whose market entry was originally planned for 2015-2016.

The volume of growth in new supply for three quarters reflects a further decrease in the pace of new construction. In just nine months of 2017, less than half of the same period last year was introduced.

According to our expectations, by the end of the year no more than 230 thousand square meters will be introduced into the market. Thus, the total volume of new construction for the whole of 2017 will not exceed 380 thousand square meters. m and again update the anti-record among similar values ​​of the past 11 years in the office real estate market in Moscow.

The total number of square meters of new office space added to the market in 2017 is estimated at 380,000 square meters. Despite the increased growth rates in the last quarter, the total volume of new construction for the year surpassed the volumes of the previous year by only 9%.

In the review there are:

• general information on MIBC Moscow-City, a map of all objects;
• actual analysys on the office market of MIBC Moscow-City (supply, demand, deals, commercial terms);
• coworking market at Moscow-City;
• detailed information for each office facility.

The volume of new construction decreased by 37% compared to Q3. 2017

The total amount of new construction for the whole 2018 will show the minimum values ​​over the past 15 years.

According to the results of nine months, the total net absorption amounted to 463 thousand sq. M. m

The share of unoccupied premises within three months decreased by 0.4 percentage points. and reached 10.3% on average for all classes.

Compared to the beginning of the year, the vacancy on the market decreased by 2.0 pp

By the end of 2013 the overall supply of quality office space in Moscow achieved 15, 2 mln. sq m During 2013 748 thousand sq m of office space was commissioned which is 20% less than at the same period of 2012.

60% of office space commissioned in 2013 is located outside Central District.

The volume of new construction in 2014 reached its maximum in the last 5 years. During the twelve months 1.4 million sq.m. were put into operation.

At the end of 2014 the total volume of net absorption, showing the change of tenant-occupied office space, amounted to 745 thousand sq.m. Under the influence of the economic crisis and geopolitical tension we see a decline in demand from tenants.

This year witnessed a slowdown in new construction. Over the year, 52% fewer office spaces were brought to the market than last year. Due to lack of funding, the construction on many properties was either suspended or postponed; the owners deferred the commissioning of buildings in anticipation of anchor tenants. 

304,000 sq.m of office premises were delivered within 9 months of 2016 what makes up less than half of new building supply of the same period last year, creating a new record of low supply for the same period during the last 10 years. The total new building supply won`t exceed 500,000 sq.m in 2016.