According to Cushman & Wakefield, absorption on Moscow office market showed substantial growth in H1 2016 after the low 2015. Absorption totaled 215,000 sq. m, which is in two and a half times more than the whole last year index. For reference – in H1 2015 absorption totaled -210,000 sq. m.
Significant absorption share is related to increased business activity and the companies’ desire to improve working environment as today lessors are offering attractive lease terms.
With low construction activity on the background, the increased demand had the positive impact on all market indicators.
Cushman & Wakefield
In H1 2016 total volume of leased and acquired office areas remains high totaling 658,000 sq. m, the number of executed new deals reached 980. 30% of areas were realized through the acquisition of entire buildings and separate blocks in business centers.
Yulia Bogomol, Associate, Research, Cushman & Wakefield, says: “Demand increase over the new construction is a very positive trend. Due to this vacancy level has slightly decreased by the end of the second quarter. However, this is just the beginning of the long market recovery process. Taking into account all factors, we should expect not only rise, but fall as well”.