Dollar rates of office rent in Moscow in 2015 reached a historical minimum

Dollar rates of office rent in Moscow in 2015 reached a historical minimum


MOSCOW, January 25. Average asking rental rates in 2015 denominated in dollars, decreased by 20% in offices of class A and 6% in offices of class b, reaching historically low values. This follows from the report of the international company Knight Frank.

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Dollar rental rates in business centers of class “A” has reached the value of $474 per square meter a year, losing $116 compared with 2014. In class “b” dollar rental rates decreased from $314 per square meter per year (in 2014) to $285, according to the report.

For the entire period of existence of the market of quality office space in Moscow the minimum dollar rental rates were recorded in 2003 ($375 per sq meter per year in class b and $535 per sq meter per year in class “A”).

According to Knight Frank, ruble rental rates for offices of class A in 2015 decreased by 17% to 25 149 rubles per square meter per year, and in the offices of class “b” – 12% to 15 103 rubles per square meter per year.

Greater reductions in rental rates the market experienced only in 2008-2009, when they had decreased by 55% in offices of class A and 52% in offices of class “b”, according to the study.

“The weakening of the ruble strengthened the tendency of transition of the office market of Moscow from foreign currency to ruble leases. Spaces where rates are denominated in dollars or euros, enjoyed considerably less popular compared to those that offered a RUB. And the attempts of owners to beat the situation by fixing the currency corridor or a particular exchange rate was not a success,” commented data report to the Director of office property Department at Knight Frank Konstantin Losyukov.