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​Moscow

‘Green’ office stock in Moscow will double by the end of 2015


Moscow, 24 June 2013 – Jones Lang LaSalle presents Moscow ‘Green’ Office Market Overview. According to JLL Research, less than 2.5% of the total high-quality office stock in Moscow is fully BREEAM or LEED certified. However, with a high interest from developers and tenants side to the ‘green’ buildings, in the upcoming 3 years this market will grow significantly.

The first BREEAM building in Moscow was Ducat Place III certified in 2010. The majority of other ‘green’ buildings have been certified in the last two years. In 2013 Jones Lang LaSalle Moscow HQs became the first property in Russia certified under LEED and BREEAM standards simultaneously.

Liliana Stoianova, Head of Office and Occupier Research, Jones Lang LaSalle, Russia & CIS:
“Today only 8 office buildings in Moscow are fully BREEAM or LEED certified, as well as parts of the premises in two office buildings (see the table below). All these premises have a total office area of 253,000 sq m. As of mid-2013 the ‘green’ office stock in Moscow is higher than in several other cities in Eastern Europe like Prague, Warsaw, Bucharest and Budapest (see the chart below). However, looking at the ‘green’ share of total office stock, Moscow with 2.5% share is still lagging behind these cities (6-12% of ‘green’ offices).”

In the CEE & SEE region, there are currently 670,000 sq m of certified high quality office premises. BREEAM certification system is currently leading in the CEE & SEE region in terms of volume of space already certified. Over 64% of “green” office space has been certified using this system in this region. In terms of number of certified developments, 26 are BREEAM certified and only 15 are LEED certified.

Ksenia Agapova, Sustainability Consultant, Jones Lang LaSalle, Russia & CIS:
“Globally, ‘green’ buildings gained popularity during the last 30 years. In Russia, this trend is still in its infancy, but during the last 3 years the ‘green’ building concept was spread rapidly. Today another 10 Moscow office buildings with a total office area of more than 300,000 sq m are expected to be certified by the end of 2015. As a result, the ‘green’ office market size in Moscow will be more than twice as big as today.”
 
“Green” office stock in Eastern Europe
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Source: Jones Lang LaSalle

 

Certified office properties in Moscow
Certified_office_properties_in_Moscow.png

Source: Jones Lang LaSalle

One of the main incentives for a building to be ‘green’ is the reduced consumption of energy and other material resources that the building can achieve. In Russia the reason behind ‘green’ development is not so obvious due to lower energy prices as opposed to the Western countries, and therefore, the question of saving resources is not so topical.

Ksenia Agapova commented: “In Moscow, being ‘green’ is a tool for differentiation of the commercial assets and is seen as a new approach for revaluing portfolios and a way in offsetting future risks in energy prices, obsolescence. An important role is also played by the prestige of occupying an office in a ‘green’ building. Due to several global requirements the market saw a number of foreign companies applying the ‘green’ standards to their Moscow office headquarters. Interest is coming as well from Russian tenants seeking to improve the quality of their office premises and working conditions of their employees. Developers and investors are increasingly interested in investing into ‘green’ construction, similar to their colleagues in other European countries.”

Jones Lang LaSalle research unveils the main pros and cons of ‘green’ office for both investors/developers and occupiers.

For investors and developers main pros are:

Cost savings during the building operation

Reduced risk of increasing operational expenses due to growing prices of energy resources

Additional opportunities for prospective investments

Low vacancy rate

Longer lease agreements

Reduced risk of obsolescence of the object in the future.

As for the investors and developers cons, they are increased costs and (possibly) longer construction period, as well as longer payback periods.

Pros for tenants are:

Compliance with policy of corporate social responsibility

Prestige of having an office in a ‘green’ building

Lower utility costs

Increased employees’ loyalty and productivity.

Main cons for tenants are the lower choice of ‘green’ buildings on the market and additional requirements for fit-out from owner’s side.



About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 242 million square meters and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $47.7 billion of real estate assets under management.

In Russia and CIS Jones Lang LaSalle have offices in Moscow, St. Petersburg, Kiev and Aktau. Jones Lang LaSalle, Russia was voted Consultant of the Year in 2004, 2006, 2007, 2008, 2009, 2010, 2011, 2012 and 2013 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 www.jll.ru​