Marketbeat Q1 released

Cushman & Wakefield published results for commercial real estate market of Russia for Q1.

Capital Markets
Total investments volume into commercial real estate in Q1 2014 reached $1.05 billion. This is 4 times less than in the same period of the previous year, when investments plunged to 4,5 bn USD.

Retail
9 new shopping centers with a total GLA of 354,383 sq m were opened in Russia in Q1 2014. Throughout Q1 2014 and the whole of 2013, rental rates were stable across all sub-sectors.

Offices
Altogether, there are 1.76 mn sq m of available office premises in 569 existing buildings and 1.70 mn sq m is on the market in buildings that are under construction. In Q1, rental rates have been on a downward trend: within a quarter Class A average rental rate decreased from $877 (Q4 2013) to $796, Class B average rental rate decreased from $575 (Q4 2013 ) to $535 (per year per sq m, triple net).

Warehouse & Industrial
Moscow region:
During Q1 240,000 sq m of quality warehouses were delivered, - a record volume for the last five years. The total volume of warehouse deals in the Moscow Region reached 112,000 sq m.By the end of Q1 2014, the average rental rate in the Moscow Region for Class A was within the $130 - $135 range.—$5 compression at the higher end was registered.

Russia except Moscow region:
In total, more than 72,000 sq m of new warehouse space has been delivered in Q1. Outside the Moscow Region in Q1 2014, take-up was more than 100,000 sq m and this was a record quarterly volume. Rates were stable in most locations.

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