During the pandemic in spring 2020 and today, many experts in the office real estate market noted a decrease in activity among potential tenants, as well as changes in requests.
If before the pandemic, for example, the company was looking for an office for rent with an area of 1,000 - 1,200 m2, then after the onset of the pandemic and the revision of the work schedule by the management of the companies and due to the limitation of the number of people simultaneously present in the office, the same company began to consider offices with an area of 500 - 600 m2.
Many large companies that managed to conclude long-term lease agreements in professional business centers before the pandemic are now forced to sublease a third, and sometimes even half of their office space in order to optimize rental and office maintenance costs. It is pleasant to note that landlords, owners of business centers in Kiev are willing to meet such wishes of their tenants and even help to sublease office space, despite the fact that they themselves have vacant office premises and they could somehow hinder or primarily advertise and promote their direct premises. This further underscores the fact that true partnerships emerge during tough times for businesses. This is appreciated and taken into account in the long-term perspective of cooperation.
In general, the rent rates in the office real estate market in Kiev were not decreased critically. From the beginning of the pandemic to the present day, there has been a slightly greater loyalty in pricing for new tenants on the part of landlords, for example, discounts for the first 12-18 months of rent, willingness to perform basic repairs, cosmetic repairs, etc.
In March 2021, rent rates for renovated office premises in Kiev
in class A business centers ranged from $ 22 - $ 30 / m2 + VAT, in class B business centers - $ 10 - $ 15 / m2 + VAT.
The activity among potential tenants for office space of about 2,000 m2 is also quite high. As the landlord of one of these renovated and open-plan premises notes, despite the lockdown, the number of viewings, site visits in March was astonishingly high, and the office was signed for lease within two weeks from the moment it was put on the market, which pleases developers, consultants and market participants.