Interest in office space in Moscow City has increased significantly in 2023, exceeding 2022 figures several times over, according to IBC Real Estate analytics. As of the latest data, approximately 3.9% of all available office space in this business district, totaling 49,000 square meters, is classified as Class A and B+.
According to the results of the third quarter of this year, rents for Category A office space reached 41,900 rubles per square meter per year, representing a 1.3% increase from the previous quarter. Category B+ offices are valued at approximately 41,200 rubles per square meter per year, up 0.5% from the previous quarter. In the first three quarters of 2023, the total area of acquired and leased offices amounted to a staggering 156,000 square meters, which is 3.5 times more than for the entire previous year, according to experts.
These figures are primarily driven by the sale of the 47,000-square-meter Time Tower and a major contract for the acquisition of the upper floors of the Space Tower as part of the iCity concept. Given ongoing negotiations for other significant deals, analysts expect 2023 to set new records for the office real estate sector in this area.
Ekaterina Belova, a senior executive in the office real estate department at IBC Real Estate, noted the steady demand for large office blocks in the Moscow City area. Despite the limited availability of space, the growing interest of large companies in consolidating all their departments in one location is stimulating further negotiations on projects under construction.
Related materials:
Moscow Office Real Estate Market Forecast for 2023
Moscow's Office Market of the Future: Innovation and Ecology in the Big City
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Moscow-City 2023: Record growth in office space rentals.
