Moscow Rents Spike 41% in the Global office market

According to the World Property Center news portal based on Cushman and Wakefield’s Office Space Across the World 2012 report, Russia’s capital Moscow experienced a steep increase in prime office rents in 2011, making it the fastest-growing location in Europe.

A lack of construction activity caused by economic uncertainty has seen supply levels ease in Moscow and in a growing number of markets across the globe.

For the fastest-growing markets, demand also improved. A rental uplift of 41% in Moscow made it the second fastest-growing city in the world – in terms of prime office rents – behind Beijing which saw a 75% jump. It also resulted in the city taking fourth position in the top 10 most expensive office locations in the world ranking, up from seventh position last year.

Mark Pollitt, Head of Moscow Office Agency at Cushman & Wakefield, said, “The outlook for 2012 remains positive, following a strong close to a number of deals in Q4 2011. Demand is driven from Russian businesses, especially from the IT and Telecoms sectors, making strategic expansion and consolidation decisions. Demand for the most expensive prime buildings could be more subdued this year with a possible delay in decision-making for international companies.”

 

February 21st, 2012