The beginning of 2017, as well as the end of last year, was marked by a record low volume of completions. The new minimum is caused by the postponement of commissioning of many business centres, the construction of which is at high stage of readiness. In Q1 2017, Dubrovka Plaza and new reconstructed buildings in Bolshevik Phase I were commissioned, with a total rentable area of about 21,100 m².
Based on the plans of developers, Moscow office market should be replenished by 500,000 m² of new supply in 2017. Half of this volume is expected for commissioning in the first half of the year. In Q2 2017, Neopolis Business District, Oasis, Fili Grad Phase II and others business centres are planned for delivery.
Office real estate market almost did not feel the seasonal decline in activity in Q1 2017. Take-up amounted to 239,000 m², which is 45% higher than the value in the same period last year and 66% higher than in Q1 2015.
In Q1 2017, the volume of renewals and renegotiations dropped to its lowest level in the last two years. They have a 19% share in the structure of total leasing activity. Thus, normal proportion of new lease and purchase deals and renewal and renegotiation transactions was reached in Q1.
Lease deals dominated in the structure of demand in January-March 2017. They form 97% of take-up. In this period 223,000 m² were leased. At the same time, in Q1 both tenants and buyers give preference to Class B premises. This segment accounted to 69% of take-up.
The volume of vacant office space in Moscow City business centres is declining gradually. At the end of Q1 vacant office space is amounted to about 142,000 m², which is 10% less than the available area in Q1 2016 and 55% below the value in Q1 2015. The vacancy rate has changed from 16% in Q4 2016 to 15.6% in Q1 2017.
These results were reported by CBRE Research Department.