The office property markets in Russian regions are experiencing a shortage of vacant space. Perm has one of the lowest levels of vacant office space among 14 biggest Russian cities, 2.4% of all available premises. The only exceptions are Moscow and St. Petersburg. For comparison – the average proportion of vacant space in million-plus cities is now 3.5%, or half of what it was the year before, the CORE.XP consulting company estimates.
In recent years, the development of new office centers has slowed down due to economic factors, the growing cost of building materials and market volatility, explains Yelena Malinovskaya, director for leasing at Skolkovo Park.
The demand remains high in a few segments of the office property market including IT or finance, which naturally exacerbates the shortage.
“Tenant requirements have also changed,” the expert says. “Modern companies are looking for open layout offices with well-developed infrastructure, convenient location and environmentally friendly solutions, which is not always the case with older buildings. Many companies shifted to telecommuting during Covid-19, which lessened the demand for large offices, but not eliminated it entirely.”
The office space market is in a stabilization phase now. Construction of new office centers is expected to increase, with due account of the changed requirements for modern offices, Yelena Malinovskaya predicts. The demand for properties offering a high level of comfort and developed infrastructure remains high, spurring the prices of such facilities. In addition, the popularity of hybrid participation, where employees can work from the office or from home, is growing, which stimulates demand for smaller offices with convenient infrastructure.
“The shortage of office facilities is a temporary situation, which is bound to change soon due to new development,” the expert concludes.