A record level of office completions • was initially anticipated for 2009, but a lack of available funding forced many developers to postpone commissioning. While the 1.4m sq m of new office supply in 2009 was only 25% down on the high of 2008, it nevertheless prompted a slowing in the growth of the vacancy rate.
Total office take-up was just 415,000 sq m in 2009, roughly a quarter of the 2008 total. However, the market experienced a gradual revival in demand in the latter half of 2009, which is now translating into a greater level of transactional activity.
In 2009 rental rates decreased by 30% and 40% for Class A and B space respectively, with the total fall from the peak of summer 2008 amounting to 55-60%. However, this has provided a real opportunity for companies to acquire space in prestigious areas of Moscow on very competitive terms. Consequently, there is a growing demand for Class A space in the central part of the city.
