According to the UTG, the drop in office rental prices was caused by the outflow of tenants. In January 2022, rent for one square meter in class A was $28.1, in class B, $17.9, and in class C – $11.9. However, in the fourth quarter of 2023, the rates were reduced by at least 30% to $19.9, $11.8, and $9.7, respectively.
“We do not see positive trends. Considering the increase in the costs of energy carriers, the increase in the price of utility bills, and with them, the operating costs (due to the increase in vacancy and the distribution of operating payments among a smaller number of operators), the burden on tenants will continue to increase, and rental rates in the near future will continue their further decline,” UTG top manager Kostyantyn Oliynyk explained.
In 2023, the vacancy rate set a new all-time high for the market, reaching 22-23% (compared to previous highs of around 17% in 2015 and 2022).