Russian Office Market Has Falling Vacancies, Rising Rents
Moscow’s office market is recovering in the aftermath of the global financial crisis, with falling vacancy rates and rental growth driven by increasing economic confidence, reports CBRE.
CBRE notes that just 111,300 square metres of office space was delivered in Q1 2012, down from 190,000 square metres in the same period of 2011. Total new supply is expected to be just 700,000 square metres in 2012.
“In Q1 2012, the major trends were the continued low volume of new supply for the Moscow office market, a stable volume of lettings — typical for this period — and falling vacancy in both class A and B buildings,” says Claudia Chistova, head of office research, CBRE, Russia. “In Q1, we registered high occupier activity, which is expected to continue throughout the year. Consistent demand for new space, combined with limited new supply, is expected to cause vacancy rates to fall t