Moscow Office Market Q1 2013 I CBRE

The report issued by the CBRE Russia Research Team focuses on the office sector in the country’s capital city, Moscow. Analyzing market indicators and offering predictions for the near future, the report covers the following topics among others:

• Active office development both in Moscow-City and beyond the Third Transport Ring

• New supply growth compared with 2012 results

• First Prime Class A office building has been put into operation since 2011

• First mixed-use complex has been delivered in Moscow-City since 2011

• Continuing decentralization: the zone between the Third Transport Ring and MKAD saw the highest volume of both new delivery (55%) and take-up (59%)

• 84% of closed deals were done in Class B buildings, in Class A – only 16%

• The majority of deals were signed by Russian companies, 86% of the total

• The most popular office size demanded was blocks up to 1,000 sq m, 75% of the total number of deals

• The overall vacancy rate increased (from 11% in Q4 2012 up to 12% in Q1)

• Vacancy in Class B properties increased by 1% (to 11%)

• Stable level of vacancy in Class A buildings

• Stable rents