Volume of O1 Properties lease transactions tripled in 2016
February 28, 2017. Investment company O1 Properties announced results of 2016. The company leased more than 80,000 square meters of office space during the year, of which just over 50,000 square meters under new contracts. Contract volumes were three times greater than in 2015. As a result, the vacancy rate of the O1 Properties portfolio including assets under management has now fallen to 12% and for class-A properties located in Moscow’s central business district to 8%. These figures are much below the average vacancy ratio for Moscow office real estate at present.
The largest leasing transactions last year were at the Avrora*, Bolshevik, Silver City, White Stone and Vivaldi Plaza business centers. The iCUBE business center welcomed its first tenants in 2016 including ABB, which moved its Moscow office at the center. Most transactions in 2016 were in the 3rd and 4th quarters.
The structure of new tenants reflects traditional tenant structure for the company: two-thirds of new agreements were with major international companies, and the remainder -with leading Russian corporations.
Among largest lease transactions, secured by O1 Properties in 2016, were as follows:
|
Company |
Square meters |
Business center |
|
Yandex |
10 333 m2 |
Avrora* |
|
ERGO |
3 200 m2 |
Silver City |
|
ODIN |
3 150 m2 |
Bolshevik |
|
Cherkizovo** |
2 200 m2 |
White Square |
|
Danaher |
1 800 m2 |
Stanislavsky Factory |
|
Moet Hennessy Distribution Rus |
1 600 m2 |
Bolshevik |
|
Liga Stavok |
1 200 m2 |
White Stone |
|
LafargeHolcim |
1 200 m2 |
Silver City |
|
Russia National Reinsurance Company |
1 100 m2 |
Ducat Place III |
Several interesting new formats appeared in the street-retail segment. Thus the Boston seafood&bar opened at the Vivaldi Plaza and the Red Bottle restaurant began work at the Bolshevik business and cultural center.
Alexander Ostrovsky, CEO of O1 Properties: “We are grateful to our new partners for their trust and for appreciating the quality of our properties. In the second half of 2016 the market conditions were friendly to companies considering plans to expand their offices or relocate them to high-quality sites. As a result, the amount of vacant space in the class-A office properties in Moscow began to decline, a trend that applies to the market as a whole and our portfolio in particular”.
* Avrora business park stands out of O1 Properties portfolio. The company manages the property and provides day-to-day operation, tenant relations, marketing and leasing services.
** Office expansion.