- 18/03/2019 - 10:49
In the 1 st half of 2016, less than half the volume of new construction came on the market in comparison with the same period of the previous year. This was a record low indicator for half- year commissionings over the last 10 years.
Total net absorption for the 1 st half was almost 4 times greater than the value for the same period of 2015. However, the high value of the indicator in the 1 st half was the result of several significant deals in facilities of class A/B+ during the 1st quarter.
Against a background of continuing freeing up of class B- spaces, the indicator had a negative value in the 2 nd quarter.
In the Moscow office market there are 3.2 million sq. m. remaining unoccupied. The decrease in net absorption in the 2nd quarter led to an increase in the share of vacant space in comparison with the end of the 1 st quarter. Nevertheless, the vacancy rate has on average decreased by 0.2 percentage points (pp) in the 1st half of the year.
In June, against the dollar’s decline, some owners of class A space increased the listed rental cost. Also the increase in the average level of rental rates for such properties was affected by a change in the supply of space being offered: high-quality space at lower rates are in the greatest demand and are gradually disappearing, leaving space at higher rates unoccupied. Thus, the average listed rental rates for class A facilities at the end of the 2 nd quarter have returned to the level at the beginning of 2016.
