16:17 22.02.2022

Classification of office real estate in Kyiv updated

3 min read

KYIV. Feb 22 (Interfax-Ukraine) – More than 20 companies of the Ukrainian office market took part in the development of an update of the Kyiv's office real estate classification, including the criterion of compliance with international green certificates.

"The classification is advisory in nature. It is not building codes or national standards. This is what the market and tenants expect from future projects. It affects developers, who we recommend analyzing their projects in accordance with new criteria, for tenants who will be able to compare objects when choosing a location, and for an investor who will be able to evaluate projects for purchase," Managing Partner of CBRE Ukraine Radomir Tsurkan said at a press conference entitled "Presentation of Office Real Estate Classification. Version 2022" at Interfax-Ukraine.

According to him, updating the classification was necessary, given the rapid growth of the market: the volume of office space in Kyiv at the beginning of 2022 is more than 2 million square meters. In addition, the requirements for office real estate on the part of tenants have changed.

The new classification has six categories: location, architectural features of buildings, parking, engineering systems, management and property, environmental efficiency.

According to URE Club partner Natalia Nesterenko, there are 46 criteria in the new classification, 11 of which are new. Among them is the environmental performance criterion, which provides for compliance with one of the international standards for assessing the environmental performance of buildings (BREEAM, LEED, WELL, etc.).

"In addition to the introduction of a new criterion "environmental efficiency," we left time for existing facilities to modernize, and for new ones to be properly designed. For class A from 2025 this is a mandatory criterion, for class B it is a recommendation," she told Interfax-Ukraine.

In addition, three criteria are mandatory for class A: transport infrastructure, management of the entire business center by one company, centralized ventilation, air conditioning and heating system.

The boundaries of the Central Business District (CBD) were also expanded. Thus, the new borders run along Bulvarno-Kudriavska, Zhylianska, Korolenkivska, Konovaltsa, Almazova, Parkova Road, Petrovska Alley.

"We moved away from the criterion that class A facilities can only be located in CBD. Instead, we divided the location criteria into three: proximity to the metro, developed social and commercial infrastructure, quality of transport interchange," Head of Analytics and Consulting at Cushman&Wakefield Marta Kostiuk said.

According to the expert, the updated classification can be a guideline for other cities and regions of Ukraine.

The updated classification will be published on March 1 on the URE Club website. About 20 companies took part in the development of the update.

The previous update of the classification of office real estate was developed in 2014 by market participants based on the platform of the European Business Association.