In 2021, ten business centers commissioned in Kyiv with gross leasable area of 155,000 sq m – Colliers Ukraine

KYIV. Jan 27 (Interfax-Ukraine) – In 2021, ten business centers were put into operation in Kyiv with a gross leasable area of 155,000 square meters, the international company Colliers Ukraine told Interfax-Ukraine.

By the end of 2021, the cumulative supply of professional office space in Kyiv reached 2.302 million square meters, which is 7.2% more than in 2020.

As the press service of Colliers Ukraine emphasized, over the past two years (2020-2021), office space with a total area of 310,000 square meters was put into operation, which exceeds the total volume of commissioned space for 2015-2019.

Among the new supply in 2021 was the only A class business center – Magnett business center (a gross leasable area of 32,000 square meters, the first stage). At the same time, even at the commissioning stage, the occupancy of the facility was about 90%, which confirms the high activity of the market.

In general, a gross office space take-up in 2021 amounted to about 130,000 square meters, which is 30% more than in 2020. However, this is lower than the results of pre-pandemic 2019, when a take-up rate was at the level of 170,000 square meters.

According to Colliers Ukraine analysts, the most active tenants of office space were companies from the IT sector, which share in the demand structure is 51% (about 65,000 square meters in 2021). Companies in the field of professional services accounted for about 12% (about 16,000 square meters) in the demand structure.

Among the significant events in the office real estate market, it is worth highlighting an agreement signed during the quarantine period, in which Colliers Ukraine acted as a participant – a long-term agreement of American University Kyiv (AUK) in partnership with Arizona State University on the lease of the Kyiv River Station on Poshtova Square. A gross leasable area of the project is 7,745 cubic meters.

Despite the significant volume of the new office space supply, there is a stable average vacancy rate in class A and B business centers at the end of 2021 – 11.5%. At the same time, compared to the end of 2020, a vacancy rate in A class business centers decreased from 10.8% to 8.5%, and in B class buildings a vacancy rate increased to 12.4% from 11.7%.

There was an upward trend in rental rates. The prime headline rent increased from $26/square meter/month in 2020 to $27/square meter/month in 2021. In A class facilities, there was also an increase in the lower limit: from $18/square meter/month up to $20/square meter/month in 2021. In B class facilities, the range of rental rates has changed from $11-19/square meter/month in 2020 to $14-19/square meter/month in 2021.

According to Colliers Ukraine, in the absence of global shocks in 2022, the commissioning of objects announced by developers, with a total volume of about 220,000 square meters, is likely.

Colliers International is a leading multidisciplinary professional services company for commercial real estate. The company has offices in 67 countries around the world.