Friday, August 18, 2017

Available office space expected to drop in Yekaterinburg

The amount of office space for rent in Yekaterinburg is expected to drop to pre-recession figures by 2014, according to the Director-General of OOO Ural-Hermes Alexander Zasukhin.

Since 2007, the amount of quality office space in the city has more than tripled. The total area of office realty is expected to rise to 1.65 square meters by 2020. The number of up-to-date business centers will also rise to 91, according to Ural Business Consulting.

"This has to do with the fact that the buildings being commissioned at the moment are primarily the ones that were started as early as before 2008, and virtually no new projects were launched during the recession years," Zasukhin said, Ural Business Consulting reports. "Given that an office building normally takes three to five years to put up, it would be only logical to presume that the amount of new office space will drop in 2013 and 2014. A number of independent experts feel that this situation might even lead to some office space shortage over the given period. However, for this shortage to become a reality, some new tenant companies must appear to rent offices, and the existing office space should also expand - and this is only possible if the Russian economy gathers a fast development pace."

Currently, most office space in Yekaterinburg pertains to Class B, with more than 20 percent of offices currently vacant in the segment. For Class A, 10 percent are vacant, though this may be a result of the building of eight new business centers in 2011.