RD Group on Situation in the Premium Class Office Sector

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Premium class business centers are mildly affected by the recession if compared to other sectors – the vacancy level at such facilities makes less than 5%. This was reported today by Roman Tkachenko, Head of the Representative Office of RD Group in Russia, at the conference “Real Estate Market Results 2015”.

On February 10, the conference “Real Estate Market Results 2015”, organized by Kommersant Publishing House, took place in Moscow. In the course of the event, the representatives of the state bodies, investors, developers and builders summed up the results of the residential and commercial real estate market, discussed the plans and the strategy for the industry development in the short term.

Based on the 2015 performance, the total volume of the office areas amounts to 16.6 mln sq. m, out of which the volume of the vacant areas makes over 3 mln sq. m. Consequently, the lease contracts in the sector of class A and B business centers are under revision with account of the new market environment.

“Under these circumstances, the premium class office assets are the only exception as they managed to maintain the stable lease flow nominated in the foreign currency. However, the share of such assets in the market is low and totals about 3%, noted Roman Tkachenko. The secret of the high demand for the premium class projects, such as Romanov Dvor Business Quarter, existing under any economic conditions lies in the professional management of the real estate, infrastructure development and offering new services to the tenants.”

Among the speakers invited to participate in the conference “Real Estate Market Results 2015” were Mikhail Men, Minister of Construction, Housing and Utilities, the representatives of the Federal Service for State Registration, Cadastre and Cartography (Rosreestr), Agency for Housing Mortgage Lending (AHML), Pioneer Group of Companies, NDV Group, etc.