In Kyiv, at various stages of construction readiness, 32 business centers with a total GLA of almost 670,00 square meters (excluding large-scale facilities) are announced for opening in 2021-2022, Managing Partner of UTG Offices Volodymyr Heliuta has told Interfax-Ukraine.
According to him, according to the results of the first half of 2021, the total rental area of professional facilities in Kyiv is slightly more than 2 million square meters. In the structure of supply of space, class A accounts for 25%, B and C – 75%.
“About 52% of office space was commissioned before 2010 and today it is morally and technically outdated. Therefore, despite the permanent lockdowns, we see the interest of investors and developers in the office real estate market – frozen and postponed projects have been actively revived since the middle of 2020. Outdated shopping centers, hotel complexes, enterprises and factories are being reconstructed into office real estate,” Heliuta said.
For June 2021, the rental price per square meter a month in class A it was $20-25 excluding VAT, OPEX, utility bills and BOMA coefficients, in classes B and B + – $16-20.
The expert said that due to the release of a new proposal, vacancy is growing. Thus, in class A business centers it is 10%, in class B, B + business centers it is 10-15% with a tendency to increase.
Since the end of 2020, the tendency towards a decrease in rented space has continued. There is a growing trend towards renting turnkey office space, including fully equipped workspaces. Smaller and medium-sized tenants (especially those who are not ready to invest in renovation, improvement, furnishing of premises) are considering alternative options for changing offices.
“There is a high demand for open space offices without intricate renovations, within walking distance from the metro, in an area with developed infrastructure. In addition, one of the desired options for tenants is parking for bicycles and electric vehicles, as well as the opportunity to take a shower. Flexible office spaces adapted to a hybrid work format that allows employees to combine remote work from home with stay in the office are becoming the new norm,” Heliuta said.
According to him, the main consumer today is the representatives of the IT sector. “Adaptive offices are attractive for them: there are many projects and a team for 200 people – a large office is needed, few projects and the team has been reduced to 50 – a small one,” the expert said.
BUSINESS, BUSINESS CENTER, HOTEL, OFFICE CENTER, SHOPPING CENTER
