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Office market in Kyiv may be replenished with 170,000 sq m of new premises by year end – Cushman & Wakefield

KYIV. Oct 13 (Interfax-Ukraine) – The office real estate market in Kyiv may be replenished with 170,000 square meters of new premises by the end of 2021, according to a report by Cushman & Wakefield.

According to the company, the new supply of offices in Kyiv in the first half of the year amounted to 90,000 square meters, which is in line with last year. Among the largest commissioned objects: the LUWR business center (leasable area – 22,000 square meters), the Platforma Korolenkivska business center (17,200 square meters), the Wave Tower business center (12,000 square meters), and the GarmArt business center (11,800 square meters).

According to Cushman & Wakefield, the demand for office space has increased – the volume of absorption of offices over the first six months amounted to 85,200 square meters, which corresponds to the indicators of the same period of the pre-COVID 2019, and three times exceeds the indicators of 2020.

"About 45% of the total absorption volume comes from preliminary lease agreements drawn up in the first half of 2021. Net absorption, which was negative in 2020, reached almost 53,000 square meters in the first half of 2021, which indicates a positive trend in the market," the analytical report said.

According to it, among the largest lease transactions over the six months is the relocation of A.G.R. Group to a business center on 52 Dehtiarivska Street (2,900 square meters), as well as transactions of unnamed companies in the Rich Port business center (1,900 square meters) and in a business center on Druzhby Narodiv Boulevard (1,900 square meters).

Office vacancy in the first quarter increased to 13.8%, but slightly decreased in the second, to 13.2%.

Rental rates by the end of the first half of the year amounted to $27/square meter/month (excluding VAT and utility bills), according to the consulting company.

Cushman & Wakefield is an international commercial real estate advisory and agency company which is represented in over 60 countries. It ranks among the largest commercial real estate consultancies in the world with annual revenues of $8.8 billion.