Supply of office leasing in Kyiv to be same as last year in 2013, says UTG
Kyiv, August 1 (Interfax-Ukraine) – The new supply on the office property market in Kyiv in the second half of 2013, taking into account offices declared for opening, could be around 163,600 square meters of a combined gross lettable area, and at the end of the year it could reach 197,200 square meters, which is almost the same as in 2012.
The forecast was presented by representative of the Ukrainian Trade Guild (UTG, Kyiv) at a press conference at Interfax-Ukraine in Kyiv on Wednesday.
"Last year some 200,000 square meters of lettable office space was commissioned, and in the first half of 2013 – some 33,000 square meters in three projects, although by the end of the year we expect that another almost 200,000 square meters will be commissioned," Head of Strategic Consulting Department at the UTG Viktor Oborsky said.
The company said that thus, by late 2013, the total supply of high-quality space in business centers of A, B+ and B- classes in Kyiv will be some 1.64 million square meters.
"With the large vacancy level of office premises of 15-16%, it could expand to 20% by late 2013 if the declared volume of offices is commissioned," Oborsky said.
He also said that rent rates for offices in A class business centers by the end of the first half of 2013 were $25-40 per square meter a month (value added tax and operating costs not included), that for B class - $15-32 per square meter a month (value added tax and operating costs not included), and operating costs amounted to $5-8 per square meter a month and $3-6 per square meter a month respectively.
"Demand for offices today is mainly formed on B class premises, as they are cheaper," he added.
UTG partner Vitaliy Boiko added that by the end of the first half of 2013 office leasing market saturation was seen in almost all regional centers of Ukraine.
The Ukrainian Trade Guild was founded in 2001. It specializes in providing comprehensive support for development projects. Over 12 years of work it has participated in opening some 97 real estate objects. Among them are the Ocean Plaza trade and entertainment center (Kyiv), Meganom (Simferopol, Crimea), French Boulevard (Kharkiv), and others.
The UTG is selecting tenants for 17 objects with a total leasable area of 772,000 square meters. The UTG in 2012 managed seven shopping centers in Ukraine with a total leasable area of 325,000 square meters.
The UTG is a member of the Association of Trade Centers of Ukraine and the International Council of Shopping Centers (ICSC), and is also a member of the Urban Land Institute (ULI).