In 2024, the Moscow City business center continues to strengthen its position as one of the most sought-after retail rental locations in the capital. According to consulting firm NF Group, the vacancy rate in the complex fell to a record 5.8% in the first half of this year—the lowest in five years. This trend is driven by both the location's growing popularity and a shortage of new inventory on the market.
The decline in vacancy is most noticeable in iconic buildings such as Evolution , OKO , Mercury , Capital City , and Empire , where virtually no vacant space remains. Meanwhile, the highest vacancy rates are observed in less central buildings such as Bagration Bridge , Tower 2000 , Northern Tower, and Neva Towers , demonstrating differences in demand based on location and ease of access.
The tenant mix deserves special attention. Catering businesses account for the largest share of leased space, accounting for 30% of all leased space, despite a decline of 11 percentage points compared to last year. Fitness centers , on the other hand, increased their share to 23%, driven by the growing popularity of a healthy lifestyle and increased demand for fitness services among employees and visitors. Service providers focused on daytime traffic account for 12% of leased space.
In the first half of 2024, Moscow City welcomed 45 new tenants, a 31% decrease compared to the same period in 2023. This decrease is due to the limited number of available spaces and their uneven distribution relative to key pedestrian flows. However, notable new openings include the Dragon pan-Asian restaurant and the Mother and Child medical center in Capital City, as well as the Trotsky Farm grocery store and Black Ivory pastry shop in Federation Tower.
Experts predict that by the end of the year, the vacancy rate will stabilize at around 6%, as no significant new developments are expected. This limited supply is keeping rental rates high, ranging from 25,000 to 120,000 rubles per square meter per year, depending on location and space characteristics.
Irina Kozina, Director of Street Retail at NF Group, noted that the observed decline in vacancy rates demonstrates Moscow City's high attractiveness to tenants of various types. She added that further infrastructure development and new projects will strengthen the complex's position as Moscow's leading business center, offering a variety of opportunities for tenants and visitors.
