From January to September of 2024, six new projects with the cumulative floor space of 35,700 sq m were added to the office estate market of Saint Petersburg, with three more facilities expected to be commissioned till the year’s end. The biggest of these has already been occupied.
The pace of new office development is insufficient to meet the high demand for quality office premises; consequently, the share of vacant space on the market for 9 months has sunk to the record 3.8%.
Given the acute shortage of supply in class A, the weighted average rental rate for such premises has soared by 46% since the turn of the year, whereas in class B the growth amounted to 26%.
In the midst of acute scarcity of quality office premises, interested occupiers are ready to consider alternative solutions: waiting for the potential vacation of some office units, accommodation in serviced offices, or leasing office space in off-plan office developments. Thus, in the business centres currently under construction, whose commissioning is expected by the end of the year, only 15% of space is still vacant.