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More than half of tenant companies do not plan to give up office space – CBRE survey
KYIV. March 1 (Interfax-Ukraine) – More than half of the companies renting office space in Kyiv do not plan to abandon their lease, they are considering various options for optimizing rental costs, according to a CBRE Ukraine survey.
“Moving is a rather expensive procedure. Even moving to an office with a ready or partial renovation requires relocation costs, bringing a new office to the format necessary for the company’s operation is a rather expensive part. Therefore, most of the companies, more than 50%, still choose to stay in leased premises today,” Yaroslav Horbushko, Director of the Capital Market Department at CBRE Ukraine, said during the URE Club’s online conference Results of 2022 and forecasts for 2023 on Tuesday.
More than 140 local and international companies of small, medium and large businesses with offices in Kyiv took part in the survey.
According to the published results, 28% of respondents took a wait-and-see attitude and postponed the decision on a possible change of location. Another 28% intend to stay in their current offices and negotiate better terms with the landlord.
About 13% of companies plan to reduce the staff and the area of rented premises, 12% partially or completely move to co-working. According to CBRE, only 12% of surveyed companies intend to give up offices, 4% to sublease the office, and 3% are considering moving to cheaper premises.
“A large number of tenants negotiate with their landlords to switch to the so-called ‘military’ rental rate, which is valid during martial law. This can be either a one-time agreement or a monthly review of the conditions. There is also a sublease, reduction of space or moving to a new office or migration to another city,” Horbushko said, adding that foreign tenant companies mostly stay in their offices, renegotiating lease agreements.
According to him, the main request of tenants has shifted towards security: preference is given to offices with a bomb shelter, and protected windows. An important factor is the remoteness of the business center from critical infrastructure facilities.
