After a significant increase in supply in previous periods, in the Q2 of 2015, we observed a decrease in the pace of new construction: 128 thousand sq. m of office space against 291 thousand sq.m. of the previous quarter. But still the volume of new construction significantly exceeds the needs of companies in the lease of new space.
In order to reduce costs, companies continue to optimize office space and reduce their footprint. At the end of the first half of the year, the total net absorption remains in the negative zone and is equal to the value - 53 thousand sq.m.
In the 1 st half of 2016, less than half the volume of new construction came on the market in comparison with the same period of the previous year. This was a record low indicator for half- year commissionings over the last 10 years.
Total net absorption for the 1 st half was almost 4 times greater than the value for the same period of 2015. However, the high value of the indicator in the 1 st half was the result of several significant deals in facilities of class A/B+ during the 1st quarter.
In Q2 2013, the total volume of quality office space in Moscow reached 14,1 million sq m. Within Q1 – Q2, 2013 299 thousand sq m have been commissioned, which is 17% more than at the same period last year.
The volume of net absorption continues to decline. During the first half of 2013 the level of net absorption reached the mark of - 48 thousand sq m.
The pace of new construction continues to be influenced by the post-crisis situation. During the first half of the year, only 48 thousand square meters of new office space were commissioned
The total net absorption in the first half of the year is 18% higher than the figure for the same period last year.
Net absorption exceeds the volume of new construction more than 6.5 times.
The vacancy rate decreased by 1.6 percentage points on average for all classes and amounted to10.7%
The office market continues to be driven by the post-crisis mood with regard to the new developments which are estimated at 25% of what was supplied in the same period of 2016. Even though the total supply of new offices will most likely exceed the number of 2016, it will remain low and unsteady.
The total supply of quality office space in Moscow at the end of Q2 2014 reached 16 mln. sq m. During the first two quarters about 504 thousand sq m were delivered, 59 % of which are class A and class B. Thus, the volume of new construction exceeds by 41% the volume of the previous year and is the highest since 2009.