Office vacancy in Kiev is falling, and rates are rising

18.01.2018 00:45
Articles about real estate | Office vacancy in Kiev is falling, and rates are rising The crisis is the time of development. This axiom was confirmed by the segment of office real estate, which took the biggest blow in 2013. After all, it was at this time that a number of large facilities entered the market, which, given the decline in business activity in the country, led to a significant vacancy. In some "newcomers" more than half of the areas were empty. In such a stressful situation, the market quickly transformed. First of all, the requirements to the quality of projects have grown. "Developers are increasingly designing and constructing facilities based on current trends and needs of tenants, scrupulously considering the infrastructure, using modern technologies for building and finishing premises, certifying their projects according to green standards," said Rostislav Simonov, head of strategic consulting at UTG.

For example, before the crisis, a project was announced that was announced as "green" - BC K / Most at Zoological 5 / 1A, but it has not been implemented yet. Nevertheless, developers understand that the certification of projects, which as a whole increases the cost of the construction budget by no more than 5%, pays off not only by reducing operating expenses, but also by the increased interest of tenants.

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This trend is very clearly visible at the end of 2017 and will intensify in the next. According to UTG, at the end of 2017, the market for office real estate reached 1,733,320 square meters. m. The new buildings of BC Forum West Side were opened for 3 thousand square meters. m and the business park Unit City for 4 thousand square meters. m. (both class B). But the lion's share of the new offer was given by A-BC Astarta Organic Business Center (28.8 thousand sq. M.), Certified according to the green international standard BREEAM Interim 2013.

Significantly, in the BC Astarta Organic Business Center, tenants are relocated from other business centers of class A, explaining that the choice was made precisely because of the "green" certificate. For example, the Siemens office in Kiev moves to the eighth floor of the BC Astarta, where by 1840 sq. M. m arranges jobs for 150 employees.

"Siemens is not only the leading industrial concern, but also the leading provider of safe, reliable, energy-efficient and environmentally friendly solutions for buildings and infrastructure." Our goal was to select the appropriate "green building" in which the company's employees would be comfortable working and the atmosphere would be conducive growth and development of business, "explained the head of the communications department of Siemens Ukraine Marina Maslai.

Kiev office Sigma Software will be located on the seventh floor of BC Astarta, an office area of ​​2083 square meters. It can accommodate 200 people. "We decided to move to Astarta business center, because the company has a need for further expansion and premises where we will be able to place specialists who continue to join our team." In the new office, we will be able to organize the space in such a way that it meets our core principles : "green office", the economical use of resources, the most convenient for work and rest conditions, "says Julia Nilga, chief infrastructure officer of Sigma Software.

The office of the Ukrainian division of the international IT company Itera will occupy 1290 square meters. m. in the second phase of the business center Astarta. "The head office of Itera in Oslo is located in the business center, which has the eco-certificate MiljØfyrtÅrn, we are very pleased that we also managed to find a" green "business center in Kiev, which demonstrates the social responsibility of the business to the environment," explained marketing manager Itera Anastasia Pozynich. Thanks to this active interest, 80% of the complex's premises have already been commissioned, which is open at the end of the year.

Experts suggest that the "green" trend will intensify. Three of the four projects, which, according to UTG forecasts, can start work in 2018, have a green certificate.

So, the third turn of BC Astarta (6,7 thousand sq. M) will be opened. Also, four new UNIT City buildings with a total area of ​​32 thousand square meters will start operating. m, which are certified by the standard LEED (Silver), as told ABCnews managing partner of UNIT.City Max Jacob.

LEED will be certified and K / Most (7,5 thousand square meters), however, its opening is transferred from year to year.

It was not possible to find out whether there was a desire for the developer of an office center on the street. Sagaidachnogo, 1 in, get a "green" certificate. But this project, which stands above the transport junction next to Postal Square, has its own peculiarity: the Acoustic Project has developed and implemented a set of measures to protect against noise.

Vacancy falls, rates are rising

According to UTG, against the background of a rather modest new offer, the vacancy rate for business centers in Kiev in 2017 has almost halved: from 23% in January 2017 to 15% in December 2017.

The average rates for this period are insignificant, but have risen: in class A from $ 21 to $ 22, in class B from $ 12 to $ 14.

According to UTG, as of December 2017, the range of rental rates in Class A is $ 16-28 / sq. M. m / month. (without VAT and operating charges), in business centers of class B - $ 8-16 / sq.m / month. The highest rental rate remains at $ 28 / sq.m / month.

By the way, rates in Kiev are not the lowest in Europe. For comparison: lower than Kiev $ 336 per year, the maximum rates in Warsaw ($ 326), Budapest ($ 319), Copenhagen ($ 293), Prague ($ 283) and Lisbon ($ 269). But the vacancy, despite the decline last year, in the Ukrainian capital is still the highest in Europe. The most crowded offices in Zurich (vacancy - 5.3%), London (4.9%) and Berlin (4.1%).

"Rent rates in Kyiv have stabilized, but in the long term, their insignificant growth is possible, but investment and development activity remains low." Still, the costs of building a new business center remain rather high, and the level of rental rates is relatively low, so developers are restrained by the attitude towards new projects.As for the owners of office real estate, the picture is improving, especially in class B. They are more willing to invest in the reconstruction and modernization of their premises as the return on investment is shorter than construction, "says Rostislav Simonov.

Indeed, long-term projects in the capital are more than enough. For example, the construction of the second stage of the Horizon Podol Business Center, a nine-story building on Naberezhno-Kreschatik, 9, was suspended in November 2013. BC Sigma (Ivan Lepse, 6, 18 thousand square meters) is completed, but for him not looking for tenants, but a buyer for the whole building. "VTB Bank" announced its sale on the electronic trading platform SE "SETAM". Announcements about the sale of Sigma BC are on other resources, with a price of $ 14 million.

Frozen at the level of 27 out of 47 planned floors, BC Sky Towers (Pr. Pobedy, 11b), was credited with $ 193 million in state-owned Ukreximbank. The future of this huge business center was attended by the City Hall. On its completion, it is necessary to $ 370 million, which they want to allocate from the budget of Kiev, to transfer the mayor's office to it.

Earlier it was reported that in the third quarter of 2017 the volume of new offer of offices in Kiev became the largest for the last three years.

Earlier we reported that office real estate in Kiev in the second quarter of 2017 grew.
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