Two new business centers were opened in Kyiv. What is happening with demand and rental prices?

In the first half of the year, 29,300 square meters of new office space were put into operation in Kyiv, according to a study by CBRE Ukraine. This total consists of two B-class business centers, Heritage (13,300 square meters) and tw12ve (16,000 square meters). The total volume of office space in Ukraine is 2.25 million square meters. In the second half of the year, there are plans to open another 7,200 square meters. The average office vacancy as of the end of June is 24.3%. In Kyiv, 70,000 square meters of offices were leased (+13% compared to the first half of last year). The effective rental rate decreased by 5% to $19 per square meter per month. This is the lowest indicator in the last 10 years, but experts do not expect a further decrease. The reasons for this are the need for more new development projects and the small volume of new offices that will be opened in the medium term. UTG also noted that due to the increase in the cost of energy sources and the rise in utility bills, the burden on tenants is increasing, and rental rates are decreasing.