Office space is rapidly disappearing in Moscow City.

The supply of office space in Moscow City is rapidly declining. According to analysts from MR Office (developer MR Group) and the consulting firm CORE.XP, less than 70,000 square meters of office space are available in the capital's largest business center—of which approximately 62,000 square meters are Class A.
Against the backdrop of record low vacancy rates, a new stage in the market's development is emerging: offices in the City are transforming from a business tool into a full-fledged investment asset.

Vacancy at the level of statistical error

By October 2025, the vacancy rate in Moscow City was 1.5%, close to a historical low.
For comparison: a year ago the figure was 1.3%, and in 2023 it was 3.7%.

The bulk of current vacancies are concentrated in the new iCITY towers, which recently opened. Even the launch of this large-scale project has failed to address the overall shortage.
The total office space in the skyscraper district exceeds 1.5 million square meters, yet only about 380,000 square meters of new space have been commissioned over the past five years, despite steadily growing demand.

In the premium segment, the dynamics are even more indicative:

• Class A - vacancy rate decreased from 3.5% to 1.2% over two years;

• class B - from 4.4% to 3.2%.

Why City can't keep up with demand

Moscow-City is the only location in Russia where business, image, and investment functions are combined in a single space.
It is a concentrated business ecosystem, limited in territory and yet boasting unrivaled transport accessibility and infrastructure.

By 2030, developers plan to commission approximately 700,000 square meters of new office space, but experts already predict that the market will absorb this entire volume without increasing vacancies.
There are virtually no more available plots for construction, which creates a structural shortage and a constant rise in prices.

“About 90% of demand is for Class A offices with an area of up to 500 sq. m.
This speaks to the trend towards compactness, flexible formats and well-thought-out functionality.”
— notes Kermen Mastiev, Director of Commercial Real Estate at MR Office.

In addition to small formats, there remains strong demand for spaces up to 1,000 square meters and up to 5,000 square meters, reflecting the active development of medium-sized businesses and growing resident companies.

Rising costs and changing transaction structure

The shortage of space inevitably leads to higher prices:
According to calculations by MR Office and CORE.XP, from the start of construction until the building is commissioned, the cost of office space in the City increases by 2-3 times.
For comparison, in other districts of Moscow the growth over the same period is 30–50%.

On average, office prices reached 676,000 rubles per square meter as of autumn 2025, up 15% from the beginning of the year.
Premium properties are sold at an additional price premium due to a critical shortage of quality space.

Today, 40% of the offers on the market are for sale, and 60% are for rent.
The most in-demand lots are between 100 and 500 square meters and spaces up to 2,000 square meters, confirming the dominance of the compact office format.

Balance of Interests: Tenants vs. Investors

For investors, the current situation is a window of opportunity:
Moscow-City maintains its status as a driving force in the office real estate market, where liquidity and potential for value growth make properties attractive long-term assets.

For tenants - a challenge:
limited choice, rising rates, and forced transition to smaller spaces or hybrid operating models.
Many companies are already combining their headquarters in the City with distributed offices in other business zones.

Prospects up to 2030

Experts predict that even after the commissioning of 700,000 square meters of new space, the market will remain tense.
Saturation is not expected: interest remains with both large state-owned companies and private investors, who view offices as a long-term means of capital preservation.

Analysts predict that prices in the City will continue to rise in the coming years:
Limited supply, lack of vacant lots, and the location's image value create a sustainable premium over the market.

Result

Moscow-City is becoming a symbol of a new cycle of commercial real estate:
An office here is no longer just a place of work, but a capitalized asset, where the price per square meter reflects not only demand, but also status.