O1 Properties leased 22,000 sq.m. of office space, not including renewal agreements, in the first half of 2021. The figure is 46% higher than in the same period of 2020. As a result the vacancy rate at the Company’s business centres fell below 7% in the first half of 2021.
Demand was particularly strong at centres in established Moscow business districts: White District (near Belorusskaya metro station) and the zone around Paveletskaya metro station. There is no specific trend among new tenants as regards industry specialization.
The table shows the top-5 deals in the first half of 2021:
|New tenant||Space (sq.m.)||Site|
|Otkrytie Broker||3 544||Silver City|
|Deutsche Bank||2 200||White Square|
|Konfidentsialny Arendator||1 884||Lighthouse|
|Konfidentsialny Arendator||1 800||Ducat Place III|
|Avtodor-Engineering||1 584||White Stone|
Pavel Barbashev, commercial director of O1 Properties, commented: “Demand in the first half of this year rose to pre-pandemic levels, pushing the vacancy rate in our portfolio below 7%. The trend is further evidence to refute forecasts of total transition by business to indefinite remote work and reduction of office-based work. The biggest share of demand remains focused in the central business district, which offers logistical advantages for any office format as well as excellent access to amenities. In the third quarter we are already processing a volume of deals close to the total amount in the first half of the year, so we expect further decline of the vacancy rate.”