In March 2021, the Space 1 flexible office network, developed by O1 Properties, is scheduled to open a new space in the Mercury Tower, Moscow City's golden tower. For this purpose, 3,250 square meters have been leased for eight years, comfortably accommodating 400 workstations. This will bring the company's portfolio to a total of 46,000 square meters.
Until now, Moscow City has offered only coworking spaces as a flexible office network. Space 1 offers a fundamentally new product suitable for mid-sized companies and large corporations seeking their own private, isolated office, away from other organizations' employees. Space 1 offers the ability to expand the number of workstations while maintaining the comfort of each employee, and the remodel can be completed in a single weekend. This allows for approximately 6-8 square meters of office space per employee. However, the price of a block or entire floor of Space 1 offices remains the same, regardless of the number of workstations.
Konstantin Korolev, head of the federal coworking network GrowUp, commented on Space 1's plans to enter Moscow City. He noted that chain office spaces are doing quite well in Moscow City, but there are already quite a few of them. After all, the Moscow International Business Center's multifunctional complexes already boast offices from Workki, CEO Rooms, Sreda, Business Club, and others, making competition quite fierce. Therefore, in his opinion, by launching a new project in Moscow City, Space 1 likely knows who the main tenant will be.
Overall, Moscow City has a very high concentration of office tenants, which drives demand for flexible office space, particularly to reduce costs when upgrading from a traditional office to a flexible one. Rapid employee growth, the launch of a new project with a new team, and other factors also drive demand for flexible office space.
Perhaps this is why another expert is confident that Space 1's proposed format will be highly sought after in the City, and that the company's presence in the capital's business center is practically essential, as it boasts a significant cluster of corporate clients. Furthermore, Space 1's office spaces boast high standards of finishes and fully meet the requirements of large corporations planning rapid expansion in the City. Meanwhile, there are currently very few ready-to-use office rentals in the City. Furthermore, it must be assumed that the lease for Space 1's new project was concluded on favorable terms for the company, as the entire space was initially unfinished.
Marianna Bichoeva, Deputy Director of Office Space at CBRE, is also confident that the flexible office space Space 1, opening in the Mercury Multifunctional Complex, will be a success. She also estimated the base annual rental rate per square meter at Mercury, which she estimates to be 27,000–28,000 rubles.
