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Moscow

Moscow is Significantly Lagging European Cities on Office Stock

There is 1.3 sq m of office area per capita in the Russian capital city


Moscow, 2 October 2013 – Jones Lang LaSalle provides comparative analysis of office space supply in Moscow and European cities. We have analyzed office stock within the Main Cities.

Although Moscow is the center of business activity and in turn is the largest and the most developed Russian office market, it is seriously lagging European cities in terms of office space saturation. According to Jones Lang LaSalle, Moscow is in 5th place by absolute volume of quality office premises (15m sq m) behind European capitals like London (20.4m sq m), Berlin (17m sq m), Paris (16.7m sq m) and Munich (15.7m sq m). St. Petersburg, the other large Russian office market, with 2.25m sq m, is not in the top-20 of this list.

At the same time, it is important to take into account the population size difference, meaning the potential office employees of these cities. The Moscow office stock per capita equals to 1.3 sq m and is lagging behind the majority of large European cities by that factor.

Olesya Dzuba, Deputy Head of Research, Jones Lang LaSalle, Russia and CIS, notes: “There is 10 times less office stock per capita in Moscow than in Zurich and Geneva and 5 times less than in Paris or London. St. Petersburg’s office stock per capita is three times lower than in Moscow, at 0.4 sq m. This difference is a strong signal for developers to build quality office premises, which are in a deficit in the market. Importantly, these premises should gradually spread over the whole city instead of focusing in the City Center.”

The Russian capital is even more significantly behind the other European cities by volume of Class A stock. Olesya Dzuba comments: “In Europe 25-30% of quality office premises are Class A on average, and Moscow has a mere 17% of Class A office premises. Class A office stock per capita amounts to 0.2 sq m in Moscow, that is 20 times less than in Frankfurt.”
 

 

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 $46.3 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