(1) IN THE STATE HOUSE AT A DISCOUNT.
(1) IN THE STATE HOUSE AT A DISCOUNT.
To work became cheaper. In the price has fallen not only a labour,
But also premises for business. If before crisis for office of the higher
Class it was necessary to pay about $900 for 1 sq. m a year and
The offer was equal to demand, now in the luxurious
Complexes are empty ten thousand square metres. Their owners
Cannot find tenants even on $600 for 1 sq. m a year.
At preservation of a present economic situation of the quotation on
Rent of offices will fall and further.
Ottsveli for a long time.
What serene and iridescent all seemed till August, 17th! On
To number of banks we began to be equaled to six France. The western companies
Hurried to stake out a place on perspective and almost
The virgin Russian market. And number of all small
Tourist, legal, rekrutingovyh and other firms grew with
In the speed of distribution of a flu. All it very much and not so
To solid offices premises were required. And they, premises,
Were under construction in almost conveyor way: yesterday waste ground or
Prehistoric small house - today a skyscraper, in which womb
Backwards-forward "white collars" scurry about.
Then - crisis. To driven in by boards cross-wise windows in
Offices has put, of course, not cunningly, though approximately the fifth part most
High quality offices, by estimations of experts of company Nobble
Gibons - CB Richard Ellis, now is empty. The prices for the office
Premises, "having broken" the first after the beginning of crisis time,
Have promptly spread downwards. Falling has averaged 30-40 %.
This falling has mentioned all sectors of the market of office premises: and
The most expensive, a so-called class And, and the most modest,
Class D.
Division of offices into classes, no less than hotels on "stars",
Has come to us from the West.
The higher class - "And" - is appropriated to office complexes,
Located in the central part of the city, equipped with all
Possible communication channels (digital telephone, satellite),
Having own protected closed parkings and
Finished under the higher category (the so-called office
European-quality repair). With protection and own service of cleaning of premises.
At the moment total amount of office areas of a class "And" in
To Moscow makes 560 thousand sq. m (in New York - 28 million sq.).
Class offices "B" are located, as a rule, in a median part
Moscow, near to brisk highways. Or in the centre - in
The reconstructed buildings, it is primary under offices not
The intended. Luxury in furnish, no less than closed
Parkings, here are not so obligatory. But on number of channels
Communications, life-support systems (ventilation, air-conditioning,
Cleaning service) and to level of protection-class offices "B" practically not
Concede to more comfortable of a class "And".
For today total amount of the areas of offices of a class "In" in Moscow
Makes about 895 thousand in sq.m. In aggregate offices of two
The higher classes in Moscow about 1,5 million sq. m. Only for 1997-1998
Years it has been constructed about 260 thousand sq. m of offices of a class "And" and
Almost 480 thousand sq. m of a class "In". Besides, by August, 1998
In a building stage was even more ten such
The centres.
Office premises of a class "C" are located in more often
The former Soviet scientific research institutes, the ministries and departments. Similar buildings
Are scattered across all Moscow. About any qualitative repair here
Speech, naturally, does not go. "Parking" is at the best
Marking in the cluttered up court yard of a building, and cleaning and protection -
The retired ensign at an input and "aunt Glasha" from whom it is necessary
To agree about cleaning of premises for "reasonable money". From
Communication channels here there is usual city phone.
Repair in premises of the given class is made by the tenant.
As to class offices "D" it is the same class "C",
Only located in the remote areas, from the bad transport
Availability and exposed to repair about forty years ago.
War to palaces.
During crisis most of all demand has fallen to office premises
Classes "And" and "In". That in general it is no wonder. After all the big
The part of premises in the centres of such level was occupied with the western
The companies which considerably have reduced the presence on the Russian
The market. And the banks, which part it was ruined, and a part essentially
Has limited itself in expenses, including on the maintenance of premises.
It was not slow to affect a status of the market of the office
Premises.
In the first epicritic months of the company which are turning off business,
Have released about 75 thousand sq. m of premises of a class "And" and "In". Still
52 thousand sq. m were offered in subrent. It, naturally,
Has affected rent cost.
Phillip Bogdanov, the director of company Noble Gibbons - CB Richard
Ellis: "If in July, 1998 to remove office of a class"And"it is less than
For $1000 a month (taking into account accompanying expenses on protection,
Cleaning, payment for a parking) it was difficult enough, now
The average price of premises of this class makes about $600. And
The prices have fallen practically at once: owners of these premises very sensitively
Have reacted to crisis ".
Except rent reduction of price, owners high quality
Complexes began to offer tenants and more favourable conditions.
For example, if earlier the minimum term of rent made two years,
That now to conclude the contract it is possible even for six months.
The advance payment became unessential also. Now for rent of offices
Classes "And" and "In" it is possible to pay by the month. And in case of entering
Payments for year forward even to receive 2-3 months "the free
Service ".
The prices for class offices "In" - with $600-750 have a little bit less fallen
(Taking into account operational and working costs) to $450-550.
Lessors of this class have reacted to crisis not at once,
The rent here fell slowly and, probably, yet
Has finished falling.
Till now it is leased less premises, than
It is released. Thus it is necessary to consider, that a number of the large companies on
To treaty provisions cannot refuse premises before the expiration
Contract term. Which till August, 1998 consisted on 3-5
Years. From here the black market, that is prospering practice of subrent
High quality offices.
Many companies which improvidently concluded
dogovory for long term, now actively hand over a part of the rented
Them of premises that though somehow to cover losses. Therefore at
Certain luck it is possible subarendovat perfectly well finished
Office of a class "And" or "In" with furniture and even computers of all for
$300-400 for metre a year. The proprietor of a premise, as a rule,
Makes light of subrent, though before crisis hardly
Would admit the similar.
Such situation, even under the most optimistic forecasts,
It will be saved not less than 1,5-2 years. Some increase in demand,
By estimations of experts, can come unless after
Presidential elections. And that if will be real hopes on
Economy lifting. Therefore all civil-engineering designs of offices of a class
"And" and "In" which have been realised less than on 50 %, now
Are frozen. After all if earlier office buildings of the higher classes
Paid off for 4-5 years now new investors should wait
At least years ten because investments have been made from
Calculation of the old price of rent which has fallen to 30-40 %.
The modesty falls in the price.
In spite of the fact that expensive offices in Moscow already more than 1 million
Sq. m, they all the same in a lump continue to remain some
Exotic. Overwhelming majority of the Russian companies:
Tourist, rekrutingovye, legal and other obviously
Small firms on a monetary turn - prefer to lodge in
Less respectable premises.
Offices of classes "With" are intended for business such and "D".
Total area of office premises of this level in capital to calculation
Does not give in. After all the most part from them surrenders polulegalno -
Management of establishments to which these buildings belong.
The market of inexpensive premises has reacted to crisis not so quickly,
As it was with more expensive offices. First two months
Stagnation which was caused by that was observed
Lessors did not wish to lower the price. And tenants could not
To pay the same money, as before crisis. But by new year a situation
Began to vary. The prices for offices of a class "With" and "D" have fallen to 30-50 % -
Depending on area and a status of a premise office of such class
Now it is possible to remove for $90-200 for sq. m a year, whereas to
Crisis the price fluctuated between $250-500.
It is characteristic, that unlike offices of a class "And" and "In", where
The tenant pays off till now depending on a course
Dollar, owners of premises more poor quality in the last
Time is handed over by the areas under the firm rouble rate.
Thus contract term, as a rule, does not exceed half a year -
At its renewal increase of cost of rent is possible.
Clearly, that the tenant at such approach wins: on six
Months he is insured from course jumps at a currency stock exchange.
So on this sector of the market the situation is reproduced has begun
90th years when uniform quotations were not also all depended from
Arrangements between the owner and the tenant.
All on sale.
The situation and in the market of sale of office premises has changed. To
Crisis offices of classes "And" and "In" practically were not on sale. Them
Owners quite reasonably expected to pay back expenses on
Building for 3-4 years and then to start to take the pure
Profit.
Now, when the recoupment of investments was stretched for 7-10 years,
Proprietors of office buildings wish to leave the
Property. Yes here demand is not present. After all after "black August" on
The market, besides again constructed office complexes, have appeared and
Buildings of numerous banks and firms. And actually on
To below cost prices. As a result to speak now about any uniform
Price level of sale of offices not to have - all depends from
Arrangements of the seller and the buyer.
Worst of all, by estimations of realtors, buildings are on sale,
Equipped under banks. First, it is too much them. Secondly,
They demand rather considerable investments at re-equipment under
Other kind of offices - to whom the big operational halls are now necessary?
On the average former bank buildings located in the centre,
Completely finished and equipped with all necessary channels
Communications, are offered, by different estimations, a maximum on $1800-2000 for
1 sq. m.
As to offices of a class "With" and "D", they now
Practically are not on sale, however, as well as before crisis. Is not present
Demand, offers.
Thus realtors try to avoid any forecasts about
Status of the market of sales of office premises even on the nearest
Prospect. Large investments in the real estate now does not do
Practically anybody.
Statistical data and materials for tables are given
Company Noble Gibbons - CB Richard Ellis.
VLADIMIR KALMANOV.
//* an information Source: the Profile, 8.03.99
//* Reg. Nom. - 1090300091.25-------------------------------------------
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