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 ongoing 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."
Source: Jones Lang LaSalle Moscow, Russia & CIS