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Moscow

Non-investment office aquisitions remain popular in Moscow

Jones Lang LaSalle issues a report Lease vs. buy: Office acquisitions in Moscow


Moscow, 29 June 2009 – Jones Lang LaSalle has issued a report on office acquisitions in Moscow. The report analyzes quality office purchase deals for owner occupation (non-investment purchases).
 
Non-investment office acquisitions are rare in mature markets, as long-term leasing is considered to be a cost-effective and less risky option for occupiers. Although the Moscow office market is relatively developed, office acquisitions for owner occupation have been quite popular due to local specifics. Office purchases have been attractive in the past and have a potential for further development.
 
The advantages of a purchase include the ability to use office as collateral, potential capital value growth, removing leasing risk, total control of the property, image, exclusivity, possibility of individual architectural design. Besides, the purchase can be attractive from a financial viewpoint.
 
The report offers comprehensive analysis of the factors governing office sales from buyer’s as well as seller’s side. It evaluates financial advantages of the office purchase under different scenarios of the Moscow market evolution and discusses the factors that will affect this evolution.
 
Vladimir Pantyushin, Head of Economic and Strategic Research Group at Jones Lang LaSalle, said: “Recent price corrections on the office market made the acquisition option attractive again. The on-going recovery of market activity serves as a confirmation, showing renewed interest from clients. At the same time, the selection of assets has improved significantly. When market rents stabilize, we expect further boost to both leasing and acquisition requests.”
 
 
 
About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specialising 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 2008 global revenue of $2.7 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 1.3 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than $41 billion of assets under management.
In Russia and CIS Jones Lang LaSalle have offices in Moscow, St. Petersburg, Kiev and Almaty. Jones Lang LaSalle, Russia was voted Consultant of the Year in 2004, 2006, 2007, 2008 and 2009 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, http://www.joneslanglasalle.ru