At the end of Q1 2021, the total volume of Moscow office supply amounted to 19.3 million sq m. In Q1 2021, about 310,000 sq m were commissioned, which is 38% more than the indicator for the entire 2020.
The vacancy rate in Q1 2021 amounted to 8.5%, which is 0.3 p.p. higher than in Q4 2020. The increase in the total vacancy rate was due to the completion of several new properties, as well as the increase in the vacancy rate of Class A buildings. Rental rates are in a state of stagnation, but their potential growth is stimulated by a significant shortage of high-quality space in premium locations. Currently, the activity of tenants in the office market continues to remain at a good level. Companies are considering various options; both moving to a new office to save or improve the quality of their current office and expanding the current space due to business growth.
The vacancy rate in Q1 2021 amounted to 8.5%, which is 0.3 p.p. higher than in Q4 2020. The increase in the total vacancy rate was due to the completion of several new properties, as well as the increase in the vacancy rate of Class A buildings. Rental rates are in a state of stagnation, but their potential growth is stimulated by a significant shortage of high-quality space in premium locations. Currently, the activity of tenants in the office market continues to remain at a good level. Companies are considering various options; both moving to a new office to save or improve the quality of their current office and expanding the current space due to business growth.