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Moscow

Moscow office completions volume decreased by 32,5%

Jones Lang LaSalle introduces preliminary Moscow office real estate market results for the third quarter of 2011


Moscow, 13 October 2011 – Jones Lang LaSalle’s preliminary research shows that 2011 the volume of completed Moscow office real estate projects in the third quarter of accounted for 141, 200 sq m. The decline over the same period last year reached 32,5%.

According to the information of Jones Lang LaSalle, the significant reduction of completed projects can be observed during the whole 2011. The total volume of new office space that entered the market during first 3 quarters of 2011 amounted to about 437, 200 sq m, showing the 31% decline compared to the same period of 2010.

Among the biggest projects that entered the market last quarter were class A BC Olympia Park (leasable area 51,000 sq m), class В+ BC Delta Plaza (leasable area 20,000 sq m), BC Ochakovo (leasable area 20,700 sq m), BC EKO (leasable area 11,600 sq m). The total supply of quality office space in Moscow exceeded 13 million sq m by the end of Q3 2011.

Despite the completion of the new big projects’ construction, vacant space volume remained at the level of 17% in Q3 2011. Vacant premises are mainly located in the new projects without current tenants and in the less competitive buildings.

Vacant space volume stabilization promoted the rental rates conservation at the level of the second quarter. In Q3 maximum annual rental rates in prime sector amounted to $1,200 per sq m, $600-850 per sq m in class A, $400-600 per sq m in class B+ and $300-400 per sq m in class B (without VAT and operational costs).

Liliana Stoianova, Head of Office and Warehouse Markets Research, Jones Lang LaSalle, Russia & CIS, noted: «The third quarter of 2011 was characterized by the stabilization of rental rates for all classes of office premises. Office tenants displayed the same level of market activity in the last quarter. The biggest deal of this quarter was the lease agreement of Kasperskiy Laboratory for about 30, 000 sq m premise in business complex Olympia Park, as well as the UniCredit Bank’s contract for leasing about 12, 000 sq m in Nagatino i-Land phase I. We expect that rental rates will remain stable till the end of 2011».


About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2010 global revenue of $2.9 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 158 million square meters worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with approximately $41 billion of assets under management.
In Russia and CIS Jones Lang LaSalle have offices in Moscow, St. Petersburg and Kiev. Jones Lang LaSalle, Russia was voted Consultant of the Year in 2004, 2006, 2007, 2008, 2009, 2010 and 2011 at the Commercial Real Estate Awards, Moscow and Consultant of the Year at the Commercial Real Estate Awards 2009, St. Petersburg. For further information, please visit our web site www.joneslanglasalle.ru