Moscow-City has seen a significant decrease in the number of transactions involving the lease and acquisition of office space. Compared to the previous year, this figure has decreased by 75% in 2022. It now does not exceed 51,000 m², which is the same as in 2015.
Representatives of Nikoliers (a consulting firm) report: "The decline in sales and leasing activity is primarily due to a shortage of large, vacant office space in the designated location. Another factor contributing to the decline in demand is the economic and geopolitical turbulence inherent in today's market."
In 2022, a quarter of the demand for Moscow-City office space, with a 25% share, was generated by companies in the manufacturing sector. Investors accounted for 22%. Professional services firms accounted for 21%. Telecommunications and IT managed to capture 17%. Over the previous four years, representatives of the latter segment remained the leaders, accounting for at least 40-50% of all existing demand. Currently, domestic firms account for 89%.
According to research commissioned by Nikoliers, the vacancy rate of office space in Moscow-City stood at 5.2% at the end of last year. Over the course of the year, this percentage has increased by 2.7%. Consequently, the vacancy rate is the same as in 2019. Experts believe this is due to the release of over 34,000 square meters of office space.
Nikoliers experts emphasize: "Despite the increasing share of vacant space, business premises classified as Moscow-City remain in high demand. They continue to be of interest to Moscow office buyers and those seeking to lease space. There is a clear shortage of such space in the submarket today. Vacancy rates in Moscow's business districts remain minimal."
