2015-12-31-莱坊-MIBC_Moscow-City_Office_Market_December_2016_5页_1mb

MIBC Moscow-City Research Summary (December 2016)

Demand & Occupancy

• Tenant Profile: Primarily transnational companies (e.g., VTB Group, Transneft) and Russian-origin firms; foreign tenants account for 60%.
• Occupier Mix: Banking/Finance (33%), Oil & Energy (28%), Non-Profit Organizations (19%), Real Estate (14%).
• Space Utilization: 47% of delivered office space is leased/purchased, with Shell & Core terms becoming more common to avoid high rental costs.

Supply & Development

• Construction Delays: Impact of the 2008-2009 crisis slowed development; key projects (e.g., Russia Tower, Neva Towers) face delays.
• Office Supply: Total office stock expected to reach ~1.3 million sq m by development completion; Class A supply phase II is restricted.
• Vacancy: Vacancy rate dropped from 44% (2014) to ~20% (Q4 2016), with ~240k sq m vacant space estimated if new projects are delivered.

Commercial Terms

• Rental Rates: Average RUR rate: 27,802/sqm/year (delivered); downward trend due to competition, with USD rates declining ~43% (2013–2015).
• Currency Shift: ~80% of Moscow-City office space is marketed in RUR now, to hedge against currency volatility.
• Key Rates:
  • USD/SQM/YEAR: 500–750 (Class B); 600–700 (Shell & Core).
  • RUB/SQM/YEAR: 18,000–32,000.

Transport & Accessibility

• Infrastructure: Direct metro/suburban train access via 3 stations (~50k daily riders). Pedestrian galleries and parking solutions (max. 10k spaces) enhance accessibility.
• Parking: Paid rates vary; premium areas charge ~200 RUR/hour; some terminals under construction (e.g., Shelepkhinskaya Hub) aim to improve connectivity.

Market Outlook

• Post-Crisis Recovery: Declining vacancy and stabilized rental rates indicate gradual absorption of space.
• Challenges: Construction delays, vacancy risk from oversupply events, and competition for large/quality units.

Developer Notes

• Source: Knight Frank Research, 2016 (Disclaimer: Market overview does not constitute property-specific recommendations).