Office development picks up in Moscow: JLL

Around 244,500 m2 of new office space was completed in Moscow during the third quarter - equal to the total for 2012, Jones Lang LaSalle has reported.

This reflects a 45% increase on a year-on-year basis, according to JLL's analysts.

For the rest of the year, completions are anticipated to be around 180,700 m2. As a result, the total completion level in 2013 is expected to rise by 32% compared to 2012, at 750,000 m2.

Leasing activity was relatively solid in Q3 with take-up volume of 323,000 m2. A total of 1 million m2 was transacted in the first three quarters, which was up 18% over the same period last year.

'During a period of more than two years, prime rents remained flat at $1,000 to $1,150 per m2 per year. Rental costs are expected to remain largely stable for the rest of the year with Class A rents ranging between $600 and $850 and Class B+ at $350-600, ' Valentin Stobetsky, head of office group, Jones Lang LaSalle, Russia and CIS, said.