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CBRE reports that in Q1 2018 demand in Moscow Office Market showed a record level since 2010

CBRE Research Department reported the results of Q1 2018 in Moscow office market.

According to the report in Q1 2018, take-up amounted to 365,000 sq m of office space. This is a record value of the new transactions volume executed for the first three months of the year since Q1 2010 (375,200 sq m). In January-March 2018, the volume of new leased and purchased by end-users offices increased by 55% compared to the same period in 2017. The volume of growth in new supply showed an extremely low value in Q1 and amounted to 37,100 sq m.

Elena Denisova, Senior Director, Head of Offices CBRE in Russia, said: “2018 began with a record demand for office real estate in Moscow. Both companies with state participation and private business were active. At the same time, the declining share of vacant space, which already limits the choice of a suitable office premises or building when searching for relocation options, will have an increasingly tangible impact on both the supply and demand balance and the dynamics of rental rates. Many users, especially large companies, already now do not have a choice and are forced to consider the lease or purchase of offices in not yet commissioned business centres or build-to-suit scheme. The deficit is obvious. This trend will increase and manifest in the nature of demand in 2018.”