Despite difficult external conditions and significant risks, new business centers in Kyiv are emerging on the office real estate market even now. Despite the high vacancy rate of office premises, modern developers continue the construction of projects started in pre-war times, and even develop new solutions taking into account the modern needs of potential tenants and buyers.
The real estate market in the office segment, despite the worst expectations of experts at the beginning of hostilities in Ukraine, was able to withstand and adapt to new realities quickly enough, although it remains limited due to the increased risks of a major war. The ability to adapt is primarily due to the experience of overcoming various crises in Ukraine, including the events of 2008-2009, the beginning of the war in Donbas in 2014, and long lockdowns related to the coronavirus epidemic. Thus, constantly facing new challenges during 2022 and overcoming them - the beginning of a major war, massive missile attacks and blackouts, the office real estate market responded to the main request of customers - to continue working despite all the difficulties and risks.
As of the 1st quarter of 2023, the volume of activity in the rental sector was approximately 45,000 square meters, which was almost the entire volume for 2022. Such a surge in activity was due to the fact that tenants began to move to prime office locations, or the newest buildings included in sector A with attractive lease terms for them. The IT sector dominates the rental structure.
In addition, significant areas were planned for commissioning. The vacancy rate was little changed, as was the standard rental rate.
New business centers in Kyiv: market trends and trends 2024
Among the changes in the work of the market, various factors are outlined that tenants pay attention to when choosing a new office. For example, during 2022, the most important request from tenants was safety first. When choosing the premises, the greatest attention was paid to security factors, the safest locations were sought with an available bomb shelter, or a parking lot equipped for staying during air raids, with a metro station within reach, at a relative distance from critical infrastructure facilities.
After that, in addition to the request for security, there was a need for premises with energy autonomy and means of ensuring uninterrupted business operation in conditions of power outages.
At the same time, the owners of the relevant real estate, due to the need to retain customers, reduced the level of rent, created specialized discounts and special conditions. The same trend was observed at newly introduced objects. New and high-quality business centers continue to be put into operation on the market, which leads to an increase in the vacancy rate. Because of this, landlords were forced to use additional discounts and unique conditions, showing flexibility and trying to adapt to dynamic changes in the market.
After the de-occupation of the Kyiv region, most companies began to return their business to the capital, in addition, those companies that were forced to relocate their business due to various circumstances were also mostly relocated to Kyiv, which created additional demand for office space.
Another market trend is the movement of business from the central districts of Kyiv to the suburbs and suburbs. Such a trend began even during the pandemic, due to a significant concentration of people in sleeping areas.
At the same time, experts predict the further development of entrepreneurship in the capital, which can significantly increase the demand for office real estate and create conditions for an increase in rental prices. That is why metropolitan developers continue to create new office projects, using new technologies and taking into account the needs of modern tenants.
New business centers in Kyiv: Creative State of Arsenal 3
On December 12, the famous Creative State company opened the newest business space in the capital — Creative State of Arsenal 3. As of now, this is the fifth location in Kyiv and the sixth in Ukraine. The company's network is also represented in Dnipro.
The Creative State of Arsenal 3 business center is located in the historical building of the commandant's office, located on Arsenalnaya Square. The space has a significant area - more than 3,000 square meters, has three floors, and can accommodate 475 residents.
The infrastructure of the office center includes various workspaces of various formats. The center includes:
- 12 meeting rooms;
- 14 specialized Skype rooms;
- 5 mini Skype rooms;
- a separate hall for holding various events, designed for 50 people;
- a unique Hot Desk area, which includes 40 seats;
- 19 private type offices with different areas;
- 9 separate Business Suites.
It is worth noting that the location includes not only working premises, but also contains a special room for relaxation with sleep capsules, its own cinema, an equipped studio for various bloggers or creators with the necessary equipment for recording, a pop-up marketplace for use by Ukrainian brands .
The unique architecture of the building makes it possible to use the first floor of the building as a shelter in the event of a missile attack. Among the advantages of the office center are unique design solutions, diverse and multifunctional areas and the presence of various infrastructure, necessary safety equipment.
The above-mentioned location was created in partnership with the company A Development, with which two previous spaces in Kyiv were previously launched. The company also has new projects that it plans to implement in the near future.
New business centers in Kyiv: GRADIENT Business Centre
Among the capital's new business centers, it is also worth paying attention to the GRADIENT Business Center, located in the capital's business center at Korolenkivska Street, 4. The project was created by the developer VGO GROUP and was officially opened on October 20, 2023.
BC belongs to class A centers and includes a 21-story building with a total area of 102,000 square meters. The entire floor of the center is designed for co-working with an open terrace, there is a specialized event hall for various events, several conference rooms, and separate VIP meeting rooms.
The business center is distinguished by a rich infrastructure, which includes a bank branch, a cafe and a dining room, a gym, and a healthy food bar.
Seven levels are dedicated to automated parking, there are charging stations for electric cars, bicycle parking, and a shelter in case of air alarms.
Among other advantages, it is worth considering the presence of an autonomous power supply provided by 3 diesel generators, an intelligent control system for relevant engineering systems (Building Management System), a system for distributing the flow of passengers in elevators operating in automated mode, as well as a system for remote control of visitor admission using qr- code.
The business center is located in the center of the capital in the immediate vicinity of the Olimpiyska metro station, the location has a developed transport infrastructure.
New business centers in Kyiv: UNIT.City campuses
In 2023, the construction of two campuses in the innovation park UNIT.City in the capital was also completed. Each of the buildings includes an area of approximately 20,000 square meters and is equipped with modern technical means.
Construction was started in 2020, and commissioning was scheduled for March 2022, but due to the impact of the full-scale invasion of the Russian Federation, the developers were forced to take a break. The Polish architecture studio APA Wojciechowski participated in the project.
As of now, the certification of built campuses in accordance with LEED standards is being carried out.
Experts expect that in 2024, the level of new supply on the Kyiv office real estate market will continue to grow. There are several promising projects from capital developers, builders and their partners.
At the same time, the implementation of new projects depends on the general environment in the country, the specifics of the military and economic situation, and other factors. Significant growth of the market and implementation of a large number of new projects in the post-war period due to risk reduction, stabilization of the situation and inflow of investments are predicted.