- 18/03/2019 - 10:56
304,000 sq.m of office premises were delivered within 9 months of 2016 what makes up less than half of new building supply of the same period last year, creating a new record of low supply for the same period during the last 10 years. The total new building supply won`t exceed 500,000 sq.m in 2016.
Since the beginning of the year 2016 the total net absorption has increased 12 times compared to 2015. The tenants carry on moving to high-quality A/B+ buildings which are still becoming cheaper. However, the growth of net absorption in Class A office buildings is driven by a number of large transactions. Many companies still move to another offices not because of their expansion but because they would like to reduce their occupancy costs and benefit from the better technical conditions in their new offices.
Over the last three months the net absorption has exceeded new building supply by 15% leading to decrease in vacancy rate. During the third quarter the average vacancy rate has fallen by 0.4 points to 16.2%.
Average base rental rates for high-quality office premises are still going down. This downward trend is due to the growing number of owners who strive to meet the market needs. Such owners change the price of the rent according to solvent demand. To sum up, for the period of nine months the decrease of Class A/B+ rental rates has come to 14-15%.
