The vacancy of Kyiv offices in 2020 was 12.5%

The vacancy of Kyiv offices in 2020 was 12.5%

18.01.2021

The vacancy of Kyiv offices in 2020 was 12.5%

According to the results of 2020, the share of free space in the office real estate market in Kyiv amounted to 12.5%, while in the previous year this figure was 9%.

Despite a fairly impressive new supply in 2020 – almost 80 thousand square meters – and the release of space due to the crisis, the office market withstood a blow because of deferred demand and preliminary lease agreements. The total market vacancy did not show dramatic growth – 12.5% at the end of the year compared to 9% at the end of 2019.

Rental rates in the office market decreased by an average of 20% in 2020: to $20-30/sq. m in class “A”, up to $12-23/sq. m in class “B”. Besides, discounts on rent up to 50%, established in several facilities due to quarantine in the spring, were mainly no longer in effect by autumn.

Among the largest transactions in 2020, experts mention the rental of the Vodafone office in BC Sigma (7.5 thousand square meters), EvoPlay in BC on the street. Leipzig (4.5 thousand square meters), the move of Frag Lab to BC “Venice” (3.6 thousand square meters). According to preliminary data, the gross absorption of Kyiv offices last year amounted to about 85 thousand square meters.

At the same time, the planned volume of the new offer (about 370 thousand square meters) and the growing popularity of flexible offices will continue to increase competition in the market in 2021. Traditional offices may feel a shortage of demand and, as a result, a decrease in rental rates.

In 2021, most likely, the format of remote work will continue to prevail: this is fully true for the first half of the year, from the second – the likelihood of a gradual return to work in offices is high. This is a question of the speed and effectiveness of vaccination and quarantine measures. Nevertheless, the experience of effective online work will bring changes to the organization of office spaces forever – various hybrid models (remote work of part of the employees, combining offline and online working days in weeks with hot-desking, etc.) will most likely continue to prevail after the stabilization of the pandemic situation.

Source: Interfax

 

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