Moscow - Property Week
Research
H1 2012
Moscow Office market report
Highlights • Occupier demand for quality offices in Moscow remains robust. The take-up of Class A and B space totaled around 450,000 sq m in H1 2012, a modest 3% increase compared with H1 2012. • New supply of Class A and B offices amounted to around 217,000 sq m in H1, 34% less than H1 2011. • It is expected that development completion levels will remain subdued over the rest of the year. Combined with robust tenant demand, this could support moderate rental growth during the next six months. • Vacancy rates have come under downward pressure due to the limited new supply. The class A vacancy rate fell from 12.5% to 11.9% over H1 2012, and the class B vacancy rate fell from 17.2% to 14.2%. • Average rents remained stable during H1 2012 for both Class A and B offices, at US$830 per sq m p.a. and US$480 per sq m p.a., respectively.
H1 2012
Moscow Office market report
Moscow City (Moscow International Business Center) 19 19 16a
18
17
ysky proezd
1 14
13 8a 8b
10
1st Krasnogvarde
16b
12 11
Complete
18
9
Kras nopr esnens kaya
7
4
20
Under construction
15 Expocenter
6
3
21
Partially complete
2
Under design Suspended
naberezhnaya
The Mo scow River
0 Table 1
Moscow City developments Site
Office component (sq m)
Status
Completion date
-
Expocenter
85,000
-
Complete
2009
Tower 2000
30,700
26,599
Complete
2002
1
Parking
170,101
-
Under construction
2015
2
Public Square and Moscow City Museum
19,000
-
Under construction
2015
3
Evolution Tower (ex. City Palace Tower)
169,000
80,000
Under construction
2015
4
Imperia Tower
287,724
70,110
Complete
2011
6
Central Core Parking & Metro Terminal (Underground)
278,000
-
Partially complete
2015
AFI Mall (ex. Mall of Russia)
179,930
-
Complete
2011
50,190
10,000
Under construction
2012
8a
Multifunctional Recreation Complex – Novotel and CityPoint office complex
9
Capital City Complex
288,680
72,315
Complete
2009
10
Naberezhnaya Tower
254,000
150,000
Complete
2007
11
Transport Terminal
228,000
122,000
Under construction
2015
12
Eurasia Tower
203,104
82,817
Suspended
n/a
13
Federation Tower
423,000
181,800
Partially complete
2007/2012
14
Mercury Tower
158,528
86,000
Under construction
2012
15
Multifunctional Complex
315,000
130,000
Under design
2015
16a
Multifunctional Complex
249,600
122,500
Under construction
2014
16b
Parking
180,000
-
Under construction
2014
Russia Tower
250,000
130,000
Under design
n/a
19
Northern Tower
136,580
78,000
Complete
2008
20
Multifunctional Business-Expo Complex
180,000
70,936
Under design
2014
21
Yuri Dolgoruky
n/a
n/a
Under design
n/a
17-18
2
Total size (sq m)
0
7-8b
2
Development
www.KnightFrank.es
www.knightfrank.com
Moscow Novator (26,500 sq m)
Dezhnev Plaza (11,000 sq m)
M-10 Fourth Trans port Rin
M-8
g
Country Park III (19,120 sq m)
14 H oe Dmitrovsk
River City (9,700 sq m)
10
in Third Transport R
SkyLight (61,250 sq m)
bo slo vo No
16
8.1
8
w
er
Park Pobedy (92,000 sq m)
7.3
7.2
Novy Arbat Str
Usadba Vsevolzhskih (720 sq m)
kaya St r
(47,485 sq m)
LightHouse (22,520 sq m)
Rosso Riva (11,700 sq m)
Vo 9 Districts lgoBusiness 1. Central gra Key projects commissioned 2. GR South dsky Av 6.1 en 6 ue 6.2 in kH1 for 2012 y 2012 and planned 3. GR West 9.3 4. GR North completed under construction 5. GR East Golden Ring 6. TTR South Class A
Le ni ns
m ol
os o
2
Knight Frank is
project consultant Key projects commissioned 9.1 in H1 2012 and planned for 2012 BC at Zhukovskogo St 13 completed under sq m) (7,250 construction 1. Central Business Districts M-7 Arma 2. GR South Class A (4,700 sq m) 5 3. GR West ClassghB 4. GR North way Entuziastov Hi 5. GR East 9.2 17 NizIIIhego Knight Frank is Aquamarine 6. TTR South rodproject s consultant
(42,150 sq m)
6.1 Leninsky 6.2 Tulsky
Class B
Key projects commissioned in H1 2012 and planned for 2012 completedM-3 under construction
Class A Class B
Key projects commissioned Key projects, 2012
K2 (phase I) (18,100 sq m)
Knight Frank is project consultant
in H1 2012 and planned for 2012
completed
under construction
Class A Class B Knight Frank is project consultant
1. Central Business Districts 2. GR South 3. GR West 4. GR North 5. 3 GR East 6. TTR South 6.1 Leninsky
1. Central Business Districts 2. GR South 3. GR West 4. GR North 5. GR East 6. TTR South 6.1 Leninsky 6.2 Tulsky
7. TTR West 7.1 Presnensky 7.2 City 7.3 Kievsky 7.4 Khamovniki
8. TTR North 8.1 Tverskoy-Novoslobodsky 8.2 Prospekt Mira
6.1 Leninsky 6.2 Tulsky
7. TTR West
Str
Ko m
49, bld. 2, Pyatnitskaya St (2,050 sq m)
Morozov (phase II) nue(13,000 sq m) ve
Class B
a nay Myt
sk yA
7.4
Dom na Mosfilmovskoy (17,470 sq m) Vorobyevskiy (14,400 sq m)
1
3
M-1
Premium: West (18,800 sq m)
4
7.1
City Point (10,000 sq m)
Grand Setun Plaza (58,220 sq m)
Dom na Mayakovke (1,245 sq m)
7
Riv
Av en ue
co
Garden Ring
11 Frank is Knight project consultant
7. TTR West
6.1 Leninsky 6.2 Tulsky
7. TTR West 7.1 Presnensky 7.2 City 7.3 Kievsky 7.4 Khamovniki
8. TTR North 8.1 Tverskoy-Novoslobodsky 8.2 Prospekt Mira 9.1 Basmanny 9.2 Tagansky 9.3 Volgogradsky
10. FTR North 11. FTR South 12. FTR West 13. FTR East
er
iv 7.1 Presnensky wR sco Mo he City T7.2 7.3 Kievsky 7.4 Khamovniki
M-2
1. Central Business Districts 15 Imagine City 2. GR South (5,300 sq m) 3. GR West Solutions BP (bld 2,3) 4. GR(39,520 North sq m) 5. GR East 6. TTR South
9. TTR East
under construction
Class A
Olympic Hall (11,000 sq m)
Atmosphere (20,700 sq m)
St r
Str
os
8.2
ya
eM
tr ya S ska
g
a dsk
Tv ers ka ya
12
Th
completed
ue
ak ov
yA ven
Key projects commissioned in H1 2012 and planned for 2012
Ru s
ng rad sk
Mira Aven
Len i
ue
way igh
M-9
8. TTR North
M-4
8.1 Tverskoy-Novoslobodsky 8.2 Prospekt Mira
9. TTR East 9.1 Basmanny 9.2 Tagansky 9.3 Volgogradsky
10. FTR North 11. FTR South 12. FTR West 13. FTR East 14. MKAD North 15. MKAD South 16. MKAD West 17. MKAD East
GR = Garden Ring TTR = Third Transport Ring FTR = Fourth Transport Ring
Borders of subdistricts
M-5
7.1 Presnensky 7.2 City 7.3 Kievsky 7.4 Khamovniki
8. TTR North 8.1 Tverskoy-Novoslobodsky 8.2 Prospekt Mira
9. TTR East 9.1 Basmanny 9.2 Tagansky 9.3 Volgogradsky
10. FTR North 11. FTR South 12. FTR West 13. FTR East 14. MKAD North 15. MKAD South 16. MKAD West 17. MKAD East
GR = Garden Ring TTR = Third Transport Ring FTR = Fourth Transport Ring
Borders of subdistricts
■ KF Dark Blue ■ KF Dark Blue S1 ■ KF Dark Blue S2 ■ KF Dark Blue S3
Table 2
Moscow submarket data Transport Ring
Transport ring Transport average rent ring vacancy (US$ per sq rate m pa)
Direction
Sub Max prime Average district rent (US$ class A rent per sq m (US$ per sq pa) m pa)
Average class B rent (US$ per sq m pa)
Stock (sq m)
Vacancy rate
Boulevard Ring
(BR)
1,089
6.05%
1
Centre
CBD
1,500
1,269
777
665,582
6.05%
Garden Ring
(GR)
814
7.00%
2
South
GRS
1,200
848
762
900,474
6.79%
3
West
GRW
1,200
1,153
840
539,300
2.26%
4
North
GRN
1,200
965
760
734,887
4.91%
5
East
GRE
915
767
628
254,771
26.31% 18.45%
Third Transport Ring
(TTR)
Fourth Transport Ring (FTR)
MKAD
612
519
386
6.31%
10.73%
14.47%
6.1
South
LEN
870
–
539
161,200
6.2
South
TUL
822
600
428
694,201
3.39%
7.1
West
CITY
1,190
920
–
476,942
11.20%
7.2
West
KHAM
900
900
554
254,526
7.40%
7.3
West
KIEV
615
615
400
224,400
2.11%
7.4
West
PRES
644
–
611
268,453
1.73%
8.1
North
PRM
8.2
North
TV-NOV
885
800
790
349,750
8.50%
1,000
950
643
639,371
9.1
East
5.23%
BASM
640
–
482
411,897
9.2
5.53%
East
TAG
635
–
635
273,000
1.38%
9.3
East
VOLG
560
–
360
187,274
11.12%
10
North
FTRN
720
676
462
714,151
7.71%
11
South
FTRS
1,000
–
450
917,328
9.52%
12
West
FTRW
900
750
692
447,386
10.94%
13
East
FTRE
550
–
443
420,084
18.28%
14
North
MKADN
309
–
220
473,221
12.83%
15
South
MKADS
700
–
479
669,293
5.17%
16
West
MKADW
780
–
413
1,073,045
21.18%
17
East
MKADE
453
–
343
201,800
830
480
Total Source: Knight Frank Table 3
Key occupier transactions, H1 2012 Company
Acquired space (sq m) Address
Property
Lease Merlion*
16,599
MKAD, 66th KM
Myakinino
Novartis*
15,934
72, Leningradskiy Ave
Alcon
Eurasian Economic Commission*
6,849
12 bld. 1, Yakovoapostolskiy Lane
Yakovoapostolskiy
BDO Unikon Business Solutions
6,322
8, Preobrazhenskaya Sq
Preo 8
FIA
5,922
2, Yakimanskaya Emb
Golutvinskiy Dvor
Pegas Touristic
4,200
14, Smolnaya St
Smolniy
Roche Diagnostics
3,853
2, Letnikovskaya St
Vivaldi Plaza
VTB 24*
3,590
8, Preobrazhenskaya Sq
Preo 8
OMZ
3,173
20, Ovchinikovskaya Emb
Central City Tower (phase II)
Tinkoff Credit Systems*
3,126
39, Leningradskoe Hwy
Olympia Park
24,945
18 bld. 2, Andropova Ave
Nagatino i-Land
23,036
18 bld. 3, Andropova Ave
Nagatino i-Land
Purchase (owner occupation) Raiffeisen Bank* Alfa Bank Source: Knight Frank
4
*Knight Frank acted as a consultant on the deal
13.67% 13.70%
H1 2012
Moscow Office market report
Figure 1
Figure 2
Average rents
Take-up vs new supply
US$ per sq m per annum
000s sq m Class A
1,600 1,400
Class B
1,800 1,600
1,200
1,400
1,000
1,200
800
1,000
600
800 600
400
400
200
2011
H1 2012
2010
2009
2007
2008
2006
2005
0
2004
200
Vorobiovsky
Figure 3
Figure 4
Vacancy rates
Figure 5
Average rents by submarket
Distribution of leasable office stock
%
US$ per sq m per annum
000s sq m
1,200
4,500 4,000
1,000
3,500 3,000
800
2,500
600
Lighthouse
1,000
FTR
MKAD
* Excluding Moscow-City
MoscowCity
TTR*
GR
BR
500 0
* Excluding Moscow-City
Figure 6
Figure 7
Vacancy rates by submarket**
Prime office yields
10
10
5
8
0
6
* Excluding Moscow-City ** Based on Class A and Class B properties
MKAD
12
FTR
15
MoscowCity
20
TTR*
% 14
GR
%
BR
H2 2011 H1 2012
0
0
H2 2010 H1 2011
200
H1 2006 H2 2006 H1 2007 H2 2007 H1 2008 H2 2008 H1 2009 H2 2009 H1 2010
5
5
1,500
400
FTR
10
2,000
MoscowCity
15
TTR*
20
GR
Class B
BR
25
Class A
H1 2006 H2 2006 H1 2007 H2 2007 H1 2008 H2 2008 H1 2009 H2 2009 H1 2010 H2 2010 H1 2011 H2 2011 H1 2012
MKAD
H1 2006 H2 2006 H1 2007 H2 2007 H1 2008 H2 2008 H1 2009 H2 2009 H1 2010 H2 2010 H1 2011 H2 2011 H1 2012
0
New Take-up supply
2,000
Source for all graphs: Knight Frank
RESEARCH
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H1 2012
Moscow Office market report
Highlights • Occupier demand for quality offices in Moscow remains robust. The take-up of Class A and B space totaled around 450,000 sq m in H1 2012, a modest 3% increase compared with H1 2012. • New supply of Class A and B offices amounted to around 217,000 sq m in H1, 34% less than H1 2011. • It is expected that development completion levels will remain subdued over the rest of the year. Combined with robust tenant demand, this could support moderate rental growth during the next six months. • Vacancy rates have come under downward pressure due to the limited new supply. The class A vacancy rate fell from 12.5% to 11.9% over H1 2012, and the class B vacancy rate fell from 17.2% to 14.2%. • Average rents remained stable during H1 2012 for both Class A and B offices, at US$830 per sq m p.a. and US$480 per sq m p.a., respectively.
H1 2012
Moscow Office market report
Moscow City (Moscow International Business Center) 19 19 16a
18
17
ysky proezd
1 14
13 8a 8b
10
1st Krasnogvarde
16b
12 11
Complete
18
9
Kras nopr esnens kaya
7
4
20
Under construction
15 Expocenter
6
3
21
Partially complete
2
Under design Suspended
naberezhnaya
The Mo scow River
0 Table 1
Moscow City developments Site
Office component (sq m)
Status
Completion date
-
Expocenter
85,000
-
Complete
2009
Tower 2000
30,700
26,599
Complete
2002
1
Parking
170,101
-
Under construction
2015
2
Public Square and Moscow City Museum
19,000
-
Under construction
2015
3
Evolution Tower (ex. City Palace Tower)
169,000
80,000
Under construction
2015
4
Imperia Tower
287,724
70,110
Complete
2011
6
Central Core Parking & Metro Terminal (Underground)
278,000
-
Partially complete
2015
AFI Mall (ex. Mall of Russia)
179,930
-
Complete
2011
50,190
10,000
Under construction
2012
8a
Multifunctional Recreation Complex – Novotel and CityPoint office complex
9
Capital City Complex
288,680
72,315
Complete
2009
10
Naberezhnaya Tower
254,000
150,000
Complete
2007
11
Transport Terminal
228,000
122,000
Under construction
2015
12
Eurasia Tower
203,104
82,817
Suspended
n/a
13
Federation Tower
423,000
181,800
Partially complete
2007/2012
14
Mercury Tower
158,528
86,000
Under construction
2012
15
Multifunctional Complex
315,000
130,000
Under design
2015
16a
Multifunctional Complex
249,600
122,500
Under construction
2014
16b
Parking
180,000
-
Under construction
2014
Russia Tower
250,000
130,000
Under design
n/a
19
Northern Tower
136,580
78,000
Complete
2008
20
Multifunctional Business-Expo Complex
180,000
70,936
Under design
2014
21
Yuri Dolgoruky
n/a
n/a
Under design
n/a
17-18
2
Total size (sq m)
0
7-8b
2
Development
www.KnightFrank.es
www.knightfrank.com
Moscow Novator (26,500 sq m)
Dezhnev Plaza (11,000 sq m)
M-10 Fourth Trans port Rin
M-8
g
Country Park III (19,120 sq m)
14 H oe Dmitrovsk
River City (9,700 sq m)
10
in Third Transport R
SkyLight (61,250 sq m)
bo slo vo No
16
8.1
8
w
er
Park Pobedy (92,000 sq m)
7.3
7.2
Novy Arbat Str
Usadba Vsevolzhskih (720 sq m)
kaya St r
(47,485 sq m)
LightHouse (22,520 sq m)
Rosso Riva (11,700 sq m)
Vo 9 Districts lgoBusiness 1. Central gra Key projects commissioned 2. GR South dsky Av 6.1 en 6 ue 6.2 in kH1 for 2012 y 2012 and planned 3. GR West 9.3 4. GR North completed under construction 5. GR East Golden Ring 6. TTR South Class A
Le ni ns
m ol
os o
2
Knight Frank is
project consultant Key projects commissioned 9.1 in H1 2012 and planned for 2012 BC at Zhukovskogo St 13 completed under sq m) (7,250 construction 1. Central Business Districts M-7 Arma 2. GR South Class A (4,700 sq m) 5 3. GR West ClassghB 4. GR North way Entuziastov Hi 5. GR East 9.2 17 NizIIIhego Knight Frank is Aquamarine 6. TTR South rodproject s consultant
(42,150 sq m)
6.1 Leninsky 6.2 Tulsky
Class B
Key projects commissioned in H1 2012 and planned for 2012 completedM-3 under construction
Class A Class B
Key projects commissioned Key projects, 2012
K2 (phase I) (18,100 sq m)
Knight Frank is project consultant
in H1 2012 and planned for 2012
completed
under construction
Class A Class B Knight Frank is project consultant
1. Central Business Districts 2. GR South 3. GR West 4. GR North 5. 3 GR East 6. TTR South 6.1 Leninsky
1. Central Business Districts 2. GR South 3. GR West 4. GR North 5. GR East 6. TTR South 6.1 Leninsky 6.2 Tulsky
7. TTR West 7.1 Presnensky 7.2 City 7.3 Kievsky 7.4 Khamovniki
8. TTR North 8.1 Tverskoy-Novoslobodsky 8.2 Prospekt Mira
6.1 Leninsky 6.2 Tulsky
7. TTR West
Str
Ko m
49, bld. 2, Pyatnitskaya St (2,050 sq m)
Morozov (phase II) nue(13,000 sq m) ve
Class B
a nay Myt
sk yA
7.4
Dom na Mosfilmovskoy (17,470 sq m) Vorobyevskiy (14,400 sq m)
1
3
M-1
Premium: West (18,800 sq m)
4
7.1
City Point (10,000 sq m)
Grand Setun Plaza (58,220 sq m)
Dom na Mayakovke (1,245 sq m)
7
Riv
Av en ue
co
Garden Ring
11 Frank is Knight project consultant
7. TTR West
6.1 Leninsky 6.2 Tulsky
7. TTR West 7.1 Presnensky 7.2 City 7.3 Kievsky 7.4 Khamovniki
8. TTR North 8.1 Tverskoy-Novoslobodsky 8.2 Prospekt Mira 9.1 Basmanny 9.2 Tagansky 9.3 Volgogradsky
10. FTR North 11. FTR South 12. FTR West 13. FTR East
er
iv 7.1 Presnensky wR sco Mo he City T7.2 7.3 Kievsky 7.4 Khamovniki
M-2
1. Central Business Districts 15 Imagine City 2. GR South (5,300 sq m) 3. GR West Solutions BP (bld 2,3) 4. GR(39,520 North sq m) 5. GR East 6. TTR South
9. TTR East
under construction
Class A
Olympic Hall (11,000 sq m)
Atmosphere (20,700 sq m)
St r
Str
os
8.2
ya
eM
tr ya S ska
g
a dsk
Tv ers ka ya
12
Th
completed
ue
ak ov
yA ven
Key projects commissioned in H1 2012 and planned for 2012
Ru s
ng rad sk
Mira Aven
Len i
ue
way igh
M-9
8. TTR North
M-4
8.1 Tverskoy-Novoslobodsky 8.2 Prospekt Mira
9. TTR East 9.1 Basmanny 9.2 Tagansky 9.3 Volgogradsky
10. FTR North 11. FTR South 12. FTR West 13. FTR East 14. MKAD North 15. MKAD South 16. MKAD West 17. MKAD East
GR = Garden Ring TTR = Third Transport Ring FTR = Fourth Transport Ring
Borders of subdistricts
M-5
7.1 Presnensky 7.2 City 7.3 Kievsky 7.4 Khamovniki
8. TTR North 8.1 Tverskoy-Novoslobodsky 8.2 Prospekt Mira
9. TTR East 9.1 Basmanny 9.2 Tagansky 9.3 Volgogradsky
10. FTR North 11. FTR South 12. FTR West 13. FTR East 14. MKAD North 15. MKAD South 16. MKAD West 17. MKAD East
GR = Garden Ring TTR = Third Transport Ring FTR = Fourth Transport Ring
Borders of subdistricts
■ KF Dark Blue ■ KF Dark Blue S1 ■ KF Dark Blue S2 ■ KF Dark Blue S3
Table 2
Moscow submarket data Transport Ring
Transport ring Transport average rent ring vacancy (US$ per sq rate m pa)
Direction
Sub Max prime Average district rent (US$ class A rent per sq m (US$ per sq pa) m pa)
Average class B rent (US$ per sq m pa)
Stock (sq m)
Vacancy rate
Boulevard Ring
(BR)
1,089
6.05%
1
Centre
CBD
1,500
1,269
777
665,582
6.05%
Garden Ring
(GR)
814
7.00%
2
South
GRS
1,200
848
762
900,474
6.79%
3
West
GRW
1,200
1,153
840
539,300
2.26%
4
North
GRN
1,200
965
760
734,887
4.91%
5
East
GRE
915
767
628
254,771
26.31% 18.45%
Third Transport Ring
(TTR)
Fourth Transport Ring (FTR)
MKAD
612
519
386
6.31%
10.73%
14.47%
6.1
South
LEN
870
–
539
161,200
6.2
South
TUL
822
600
428
694,201
3.39%
7.1
West
CITY
1,190
920
–
476,942
11.20%
7.2
West
KHAM
900
900
554
254,526
7.40%
7.3
West
KIEV
615
615
400
224,400
2.11%
7.4
West
PRES
644
–
611
268,453
1.73%
8.1
North
PRM
8.2
North
TV-NOV
885
800
790
349,750
8.50%
1,000
950
643
639,371
9.1
East
5.23%
BASM
640
–
482
411,897
9.2
5.53%
East
TAG
635
–
635
273,000
1.38%
9.3
East
VOLG
560
–
360
187,274
11.12%
10
North
FTRN
720
676
462
714,151
7.71%
11
South
FTRS
1,000
–
450
917,328
9.52%
12
West
FTRW
900
750
692
447,386
10.94%
13
East
FTRE
550
–
443
420,084
18.28%
14
North
MKADN
309
–
220
473,221
12.83%
15
South
MKADS
700
–
479
669,293
5.17%
16
West
MKADW
780
–
413
1,073,045
21.18%
17
East
MKADE
453
–
343
201,800
830
480
Total Source: Knight Frank Table 3
Key occupier transactions, H1 2012 Company
Acquired space (sq m) Address
Property
Lease Merlion*
16,599
MKAD, 66th KM
Myakinino
Novartis*
15,934
72, Leningradskiy Ave
Alcon
Eurasian Economic Commission*
6,849
12 bld. 1, Yakovoapostolskiy Lane
Yakovoapostolskiy
BDO Unikon Business Solutions
6,322
8, Preobrazhenskaya Sq
Preo 8
FIA
5,922
2, Yakimanskaya Emb
Golutvinskiy Dvor
Pegas Touristic
4,200
14, Smolnaya St
Smolniy
Roche Diagnostics
3,853
2, Letnikovskaya St
Vivaldi Plaza
VTB 24*
3,590
8, Preobrazhenskaya Sq
Preo 8
OMZ
3,173
20, Ovchinikovskaya Emb
Central City Tower (phase II)
Tinkoff Credit Systems*
3,126
39, Leningradskoe Hwy
Olympia Park
24,945
18 bld. 2, Andropova Ave
Nagatino i-Land
23,036
18 bld. 3, Andropova Ave
Nagatino i-Land
Purchase (owner occupation) Raiffeisen Bank* Alfa Bank Source: Knight Frank
4
*Knight Frank acted as a consultant on the deal
13.67% 13.70%
H1 2012
Moscow Office market report
Figure 1
Figure 2
Average rents
Take-up vs new supply
US$ per sq m per annum
000s sq m Class A
1,600 1,400
Class B
1,800 1,600
1,200
1,400
1,000
1,200
800
1,000
600
800 600
400
400
200
2011
H1 2012
2010
2009
2007
2008
2006
2005
0
2004
200
Vorobiovsky
Figure 3
Figure 4
Vacancy rates
Figure 5
Average rents by submarket
Distribution of leasable office stock
%
US$ per sq m per annum
000s sq m
1,200
4,500 4,000
1,000
3,500 3,000
800
2,500
600
Lighthouse
1,000
FTR
MKAD
* Excluding Moscow-City
MoscowCity
TTR*
GR
BR
500 0
* Excluding Moscow-City
Figure 6
Figure 7
Vacancy rates by submarket**
Prime office yields
10
10
5
8
0
6
* Excluding Moscow-City ** Based on Class A and Class B properties
MKAD
12
FTR
15
MoscowCity
20
TTR*
% 14
GR
%
BR
H2 2011 H1 2012
0
0
H2 2010 H1 2011
200
H1 2006 H2 2006 H1 2007 H2 2007 H1 2008 H2 2008 H1 2009 H2 2009 H1 2010
5
5
1,500
400
FTR
10
2,000
MoscowCity
15
TTR*
20
GR
Class B
BR
25
Class A
H1 2006 H2 2006 H1 2007 H2 2007 H1 2008 H2 2008 H1 2009 H2 2009 H1 2010 H2 2010 H1 2011 H2 2011 H1 2012
MKAD
H1 2006 H2 2006 H1 2007 H2 2007 H1 2008 H2 2008 H1 2009 H2 2009 H1 2010 H2 2010 H1 2011 H2 2011 H1 2012
0
New Take-up supply
2,000
Source for all graphs: Knight Frank
RESEARCH
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