According to NF Group, at the end of the first half of 2024, the St. Petersburg office real estate market recorded a minimum level of vacancy. The total share of vacant space in the segment is 5.4%.
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In the first six months, the total area of vacant offices in class A and B business centers decreased by 27% and amounted to 230 thousand sq. m. m. Experts note that the decrease in vacancy is due to the minimal volume of new supply of office space and the consistently high demand for them. Also in the Northern capital market there is a significant increase in weighted average rental rates. Class A business centers are experiencing the highest six-month growth rate in history (+13.7%).
At the end of the first half of 2024, the St. Petersburg office real estate market was replenished with four new class B business centers with a leasable area of 34.4 thousand square meters. m. Among them are “K-37” and “Lakhta Plaza”, which are already fully leased. Also, a car showroom and the former Crystal Palace cinema on Nevsky Prospekt were reconstructed into an office center.
In the second half of 2024, developers plan to complete construction of no more than 100 thousand square meters. m of office real estate. Most of these areas have already been leased or are at the stage of contract negotiations.
“Despite minimal vacancy and a significant increase in rental rates for office space in St. Petersburg , current rates have not yet reached a level that would encourage developers to actively build new speculative projects. With limited new construction, market vacancy could drop to less than 5% by the end of the year. It is predicted that rental rates will remain positive, but restrained, due to limited effective demand,” said Regina Voloshenko, director of the office real estate department at NF Group .
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