In Moscow, the vacancy rate was declining since Q3 2015 when the vacancy was 17%. A year ago, the vacancy rate was 16.3%, in Q1 it was 13.1% already.
Lower vacancy rate was recorded in all classes. In H1 2018, the Class A vacancy rate declined to 12.9%, Class B+ to 11.6%, Class B- to 11.9%.
Geographically, the vacancy rate diminished strongly in key Moscow submarkets over the last year, by 6 ppt to 11.4% in the Moscow City and by 4.4 ppt to 8.9% in the Central Business District.
“The vacancy rate in the city centre reached the ten-year minimum, at 7.7% for both Class A and B+ premises there. The Central Business District net absorption was at 75,000 sq. meters in H1 2018, in H1 2017 it was negative,” comments Elizaveta Golysheva, Head of Office Agency, JLL, Russia & CIS. “The key deal was Aeroflot in the Arbat 1 business centre. Moreover, vacancy rates in such centres like Legend or Paveletskaya Tower diminished strongly. Considering the high demand and the lack of completions in the Central Business District, the vacancy rate there will continue to decline. Therefore, we expect the CBD to transition into a landlord market in H2 2018.” (Read more…)