Business moved out: by the end of the year, every fifth office in Kyiv was empty
Kyiv, January 29 (PolitNavigator, Alexander Semenyuta) – The economic crisis has affected the occupancy of office space and hit the income of landlords in the capital. According to the consulting company Colliers International, at the end of 2014, 20% of office space in Kyiv was empty.
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The decline in business activity in the office real estate market since the beginning of 2014, as well as the introduction of a large volume of new supply of office space to the Kyiv market, also led to a drop in the cost of renting offices. Average rental rates at the end of 2014 for premises with basic finishing in class A were $23-35 m²/month, in class B - $12-21 m²/month, in class C - $8-10 m²/month.
In the first half of 2014, there were practically no transactions on the office market. The number of empty offices increased from 15,1% at the end of 2013 to 24% in the first half of 2014. Starting from the second half of 2014, there was a gradual revival of demand in the market, and an increase in the number of companies willing to consider moving to alternative premises.
“In the first half of 2014, demand and, as a result, consumption of office real estate decreased significantly. In the first half of 2014, the office real estate market was essentially “dead”. The situation improved slightly only in the fourth quarter of last year,” summarizes Managing Director of Colliers International Alexander Nosachenko.
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