Fast-moving consumer goods (FMCG) producers in Russia such as Nestle, Johnson & Johnson, Procter & Gamble, PepsiCo and Coca-Cola prefer to lease rather than purchase office premises, according to CBRE Research’s latest Trends in FMCG sector in Russia survey. Eighty-nine percent of the total office space is leased. In the last 5 years FMCG companies leased predominantly class-A offices, 68% of take-up.
The study that was held for the first time in 2015, CBRE analyzed the office space occupied by 62 largest FMCG companies (total office area around 240,000m²).
Historically when choosing location for their offices FMCG producers preferred class-A premises located in the CBD. As a result, 50% of the total office take-up of this segment is located within TTR. Though, following the general cost optimization trend of the last three years, FMCG producers prefer to lease office space beyond TTR (68% of take-up in 2013-2015).
Fourteen FMCG companies moved to new offices in 2015 occupying 22,000m². Twenty-two companies renegotiated their current lease terms (63,000m²), which was the record high figure.
Irina Khoroshilova, director of global corporate services department CBRE in Russia said: “On the back of import substitution programme implementation, we can expect activation of Russian food producers as well as international companies with local production which will continue to increase market share to cover falling import of food. The food imports share in retail stock has dropped down to 28% in 2015 from 34% in 2014 and continue to decline, to 24% in Q1 2016. So we can expect the growth of office space demand from the FMCG companies mentioned above. In addition decentralization trend will continue and FMCG companies will look for office space between TTR and MKAD.”
