The average vacancy rate of A and B class professional business centers in Kyiv as of late 2012 came to 14.5%, in particular, 20% for A class offices and 12% for B class offices, reads a press release of the Ukrainian Trade Guild (UTG, Kyiv).
UTG said that rent rates for offices in professional A class business centers last year fell by 2.6%, to $28-40 per square meter monthly, excluding value added tax and operational costs.
The average rent rates for B class offices as of late 2012 retained at the level of late 2011 – $16-32 per square meter monthly, excluding value added tax and operational costs.
Operational costs for A class offices totaled $5-9 per square meter monthly and for B class offices – $3-6 per square meter monthly, excluding value added tax.
The press release says, referring to the head of the strategic consulting department at UTG, Viktor Oborsky, new supply of offices in Kyiv in 2012 came to 190,000 square meters, and the total supply expanded to 1.48 million square meters in 130 A and B class business centers.
“The total volume of high-quality offices in Kyiv by late 2012 reached 1.48 million square meters in 130 A and B class business centers. A record new supply has led to the increase in the vacancy rate and active price competition. Taking into account current demand, it will take around two or three years to absorb new supply of 2012 and stabilize the market,” the expert said.
The Ukrainian Trade Guild was set up in 2001. The company provides a full range of services that allow it to realize all stages of a development project. The company manages trade, office, industrial, warehouse, residential and out-of-town housing real estate.
The UTG is a member of the Association of Trade Centers of Ukraine and the International Council of Shopping Centers, and is also a member of the Urban Land Institute.
