In the first half of 2009, demand for the Kiev office centers continued to
shift towards cheaper premises. During the first half of 2009
vacancy rate in business centers has increased by almost a factor of 2 and
reached 10-15%. Until the end of 2009 is expected to fall rates at least another
by 12-15%. These are data from a recent research report of "Knight
Frank Research ".

As reported LigaBusinessInform the press service of the company, I-II quarters
2009 continued downward trend in rental rates, which began in
IV quarter of 2008. During the first half of 2009, rates declined in
on average 35% of the IV quarter of 2008. In I half of 2009
demand continued to shift towards cheaper premises. The process
redistribution of demand for office space in the direction of small
units (100-300 square meters). Key events in the first half
2009 in the office segment was concluded several major transactions:
Pharmaceutical company "Boehringer Ingelheim Pharma GmbH" signed
lease for more than 1,500 sq.m. in the office center on the street. Turgenev, 26.
German home appliance maker Miele rented in BC Deloitte
1,000 sq.m. The company "Kimberly-Clark" rented about 600 m.
square. in BC "Protasov." The Turkish construction company "Dogus Insaat
ve Ticaret AS "rented more than 500 square meters in BC" Carat ", located
on the street. Zhylianska, 110. International pharmaceutical companies and international
commodity trader rented a 1800 sq. m. in BC "Leonardo-2" on the street. B. Khmelnitsky
19-21A. The company "Huawei Technologies" signed a lease for
2000 sq.m. in BC "Irv". Proposal during the first half
2009 segment of commercial real estate of Kiev Class "B" has increased by 21, 2
thousand sq. m. by entering a business centers, "Capital Hall" and "Left-bank".
Thus, the total supply of professional office space
Kiev at the beginning of July 2009 was 1055, 8 thousand square meters
On July 1, 2009 structure offers a professional office
Real estate is as follows: Class "A" - 15%, class "B +" - 31%
and "B" - 54%. Demand compared to the same period of 2008
year in the first half of 2009, there were significant changes in the structure
demand: significantly increased the proportion of requests for cheaper office space.
In January-June 2009 about 40% of lease applications had to segment the class
'B-', whereas in the first half of 2008, more than 50% of requests were
application for Class "B +". On a class "C" in the first half of 2009 had
30% of applications, whereas in the first half of 2008, requests for this segment
accounted for only 15%. In the market, the process of restructuring
Demand for office space. Small blocks of 100-150 square meters area become
most liquid objects. In 2008, the most popular
have offices ranging from 200 to 500 sq. meters, whereas in January-June 2009, the main
number of applications from prospective tenants had to rent office space
from 100 to 300 sq.m. Requests for blocks of space over 1000 square meters, as a rule,
not associated with the expansion, and the union of different entities separate
companies in the same building. Demand for office space in facilities located
under construction, is virtually nonexistent. Tenants prefer
consider the operating business centers or facilities, ready for commissioning
into operation. The preliminary agreement signed in exceptional
cases and, as a rule, the conditions for granting significant discounts.
During the first half of 2009, vacancy rates in business centers
Kiev has increased by almost 2-fold and reached 10-15%. Commercial terms
In the first half of 2009 continued downward trend in rental
rates for office space, but with the II quarter rate of decline in several
slowed. In the first half of 2009, falling interest rates
rent averages: Class "A" - 25%, for Class "B +" - 34%
Class "B" - 40% of the rental rates set forth in the IV quarter
2008. As of July 1, 2009 rental rates were
in the range of $ 420-540/m.kv./god for Class A offices, at $ 240-420/m.kv./god
B + class office and $ 180-240 / mВІ / year in office class "B-". More
30% of trades are recorded lease office space in UAH without
binding to the dollar. With the continued growth forecast
vacancy in the second half of 2009, the rental market of office real estate
Kiev is projected to further decline in rental rates. Until the end of 2009
may be expected incidence rates for at least another 12-15%. This will be
contribute to the following factors: - Growth
proposals due to the growth of the market sublease. - Continued
decline in demand from prospective tenants due to the reduction of
staff, reducing the costly parts of the budgets of companies. - Change
tenants of office space at lower cost. According to analysts,
volume of new construction in the capital also significantly reduced. Of the announced
to be commissioned in the second half of 2009, 192, 7 thousand square meters office
area, according to recent estimates, the market will not exceed 70, 2 thousand square meters
Recall that according to the company "Ukrainian Trade Guild" for
From 12 to 22 July index office market in Kiev is much
added. Growth over the past 10 days was 4, 11% (14, 5 points). Average
rents offices in Kiev today is $ 39, 1 for 1
sq.m.

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