Demand

The last month did not show decrease of the demand for office space. However, there is a tendency of the companies to optimize the office rental cost. Due to recently increased vacancy for the offices of good quality located on the periphery of Kiev many reputable companies have a chance to enlarge the office space and at the same time to optimize the rental costs.

Old Podol has always been one of the most attractive areas of Kiev. The charm of ancient buildings and modern infrastructure are combined here, which allows to run successfull business. The most important traffic there are metro and tram. The are three metro stations in Podil area: "Pochtova Poscha", "Kontraktova Ploscha", "Taras Shevchenko".Office rent in the old part of Podil is one of the most prestigious. Many foreign and Ukrainian companies prefer to rent an office in this part of Kiev.

About 60 buildings of the total area of about 285 000m2 offer offices for rent in this part. The share of stand alone houses offered for rent here is significant. High quality office space make the majority here (A class office space share comprises to 40%). At the same time about 30000m2 of new A class office space supply expected on the market in 2012. The vacancy rate (the share of available space offered for rent) for the A-class buildings now stands at 5%, which reflected in the highest for this area rental rates for such offices $ 25m2/month

Office property market of Kiev suffered a significant rearrangement since the crisis began. Class A office centers were hit the first and emptied more than half in the first 6 months of the crisis on Ukraine. This was reflected in rents in these office centers. Stable companies that have withstood the first wave of the crisis and leased at the time B class offices, took advantage of this opportunity and started to rent a top-class offices. At the same time, companies that were forced to economize in a crisis, actively began to rent C class offices. Thus, today we have the largest number of vacant space in the segment of B class office rental. Thus, the most popular today is the C Class office space for rent and office premises on the outskirts of Kiev.