Office vacancy in Kyiv 0.7 p.p. up in Q3, 2014, rent rates 6% down, says JLL
Kyiv, October 10 (Interfax-Ukraine) – The vacancy level on the high-quality office property market in Kyiv grew by 0.7 percentage points in July-September 2014 and came to 23.3% or 414,900 square meters, Consultant of the economic and strategic research department of Jones Lang LaSalle (JLL) Marya Supchan said at a press conference at Interfax-Ukraine on Thursday.
"Mainly, this was linked to growth in vacancy of A class offices – by 3 percentage points [to 35.3%] while in B class the vacancy rate slightly grew, only by 0.1 percentage points [to 19.5%]," she said.
JLL said that by the end of the third quarter of 2014, the share of A class offices was 152,100 square meters and the share of class B offices was 262,800 square meters.
Supchan said that growth in vacancy on the office property market in Kyiv resulted in the decline in rent rates.
She said that the largest rent rate in July-September 2014 grew by 6% and by 11% since early 2014, to $31 per square meter (value added tax and operation cost not included).
JLL said that the range of the basic rent rate per square meter for class A offices in Kyiv in the third quarter of 2014 came to $19-31 and that for class B - $12-22.
The operation cost for class A and class B offices in the third quarter of 2014 stood at $6-8 and $4-5 per square meter a month respectively.
Supchan said that in July-September 2014 only two class A business centers with a total area of 5,400 square meters were commissioned in Kyiv; DemievSky (3,800 square meters) and Intellect (1,600 square meters).
Thus, by the end of the third quarter a total of 1.777 million square meters of high-quality office property was in Kyiv.
JLL said that in the fourth quarter of 2014 it was announced that another 5,300 square meters of office property will be commissioned.