Office rental in Moscow — trends, costs and selection criteria

Office rental in Moscow in 2024 demonstrates certain trends and features that may be useful when planning rentals.

Supply and demand: in the Moscow office real estate market there is a decrease in the vacancy rate to 8%. This is the minimum figure for the last 10 years, which is due to high demand, despite the relatively low pace of commissioning of new office buildings

Types of offices:

• Flexible office spaces (coworking and flexible workspaces) are becoming increasingly popular. As of the end of 2023, the area of ​​flexible offices amounted to 393 thousand square meters. m.
• Class A and B offices located in central areas remain in trend. Offices in Moscow City and within the Central Administrative District are especially in demand, where rental rates are among the highest.

Rental cost:

• class A offices in the center of Moscow (for example, in Moscow City) can cost about 45-50 thousand rubles. per sq. m per year.
• class B offices offer more affordable conditions — approximately 20-30 thousand rubles. per sq. m per year.
• Outside the center, prices for offices may be lower, but they also greatly depend on the condition and infrastructure of business centers.

Current Trends: In 2024, there will be an increase in rental rates, especially in popular areas such as Moscow City. At the same time, demand for flexible office space continues, driven by flexibility in leasing and convenience for startups and small companies.

What factors determine the cost of renting offices?

The cost of renting an office depends on a number of key factors that influence the price level in a particular area or building. Here are the main ones:

Building class:

Offices are divided into classes A, B and C:

• class A: the most prestigious buildings located in the city center with high-quality finishes, modern infrastructure and additional services (parking, security). Rent here is the highest.
• class B: mid-price offices, often located closer to the outskirts, but with good infrastructure.
• Class C: older or less comfortable buildings, often without modern finishes and additional services. Rental prices are lower here.

Location:

• The closer the office is to the city center, the more expensive the rent. For example, offices in the Central Administrative District or Moscow City have the highest rates.
• good transport accessibility, the presence of a metro or key highways nearby increases the cost.

Area and layout:

• Large offices, especially open plan ones, can be more expensive due to their ease of adaptability to business needs.
• the presence of meeting areas, kitchens, and lounges also increases the cost.

Technical equipment:

• offices with high-speed Internet, modern air conditioning and energy supply systems, as well as a high-quality security system will cost more.
• The level of engineering systems (elevator, ventilation, etc.) is also important.

Availability of infrastructure:

• additional services and infrastructure, such as secure parking, co-working spaces, restaurants and cafes in the building or nearby, raise the rental price.
• the ability to use the office as the company’s legal address also adds value.

Lease term and terms of the agreement:

• Long-term leases may provide discounts, while short-term leases (less than a year) are often more expensive due to greater flexibility for the tenant.
• rent indexation conditions, responsibility for repairs and utility bills can also affect the final cost.

Vacancy in the market:

• The level of rental rates is influenced by the general supply and demand in the office market. During periods of high demand, for example when office vacancy falls, prices rise. In 2023-2024, demand for offices in Moscow was high, which led to a decrease in the level of available space and an increase in prices.

Thus, the cost of renting an office in Moscow is influenced by many factors, such as location, prestige of the building, infrastructure and the market as a whole.

The decision to find an office rental on your own or with the help of a real estate agent depends on your goals, timing, and level of experience in the commercial real estate market. Here are the pros and cons of each approach:

Independent search

Pros:

• savings on commissions: if you find an office yourself, you do not need to pay an agent’s commission, which can be 50-100% of the monthly rent.
• control over the process: you can independently evaluate options, research the market and negotiate directly with landlords.
• flexibility: you have the opportunity to independently choose your search criteria, filter out unsuitable options and negotiate at your own pace.

Cons:

• labor intensive: searching on your own can take a lot of time, especially if you have no experience. You will have to spend resources monitoring multiple sites and visiting sites.
• Limited access to information: Real estate agents often have access to exclusive listings that are not publicly available.
• Complexity of negotiations: You may lack the experience to effectively negotiate the terms of a lease or understand the legal nuances of a contract.

Search through an agent

Pros:

• saving time: the agent can quickly provide suitable options, reducing your participation in the search.
• Expertise: Professional realtors know the market, current rates and can provide you with the best solutions based on your budget and requirements.
• Negotiation support: an agent can help you achieve better terms on price, rental terms or other aspects of the contract.
• legal security: agents can also check the reliability of tenants and advise on legal issues.

Cons:

• cost of services: as a rule, the agent receives a commission for his services, which can reach significant amounts.
• risk of dependence on the agent: in some cases, the agent may offer a limited range of properties with which it has agreements, and not the most suitable ones for you.

Bottom line

• If you are familiar with the market and have enough time and skills to negotiate, then searching on your own can be a profitable solution.
• If you value time and don’t want to get bogged down in details, an agent can greatly simplify the process and help you avoid mistakes.

Typically, for small offices (for example, up to 100 sq. m.), an independent search is more justified, while for large objects or offices in prestigious business centers it is better to attract an agent.

Office selection

When renting an office, it is important to consider several key aspects in order to choose the right space and avoid possible problems in the future. Here are the main points:

Location:

• transport accessibility: the office should be convenient for employees and clients. Consider the availability of parking, proximity to public transport, and access to major highways.
• environment: check if banks, post office, restaurants and other important business facilities are nearby.

Size and layout:

• number of employees: calculate how many square meters will be needed to comfortably accommodate employees, taking into account the growth of the company.
• layout: open space or offices — depends on the format of work. It is also important to have meeting areas, kitchens and bathrooms.

Rental price:

• Rent: does it include utilities, cleaning, security, internet and maintenance? It is important to clarify all hidden costs in advance.
• Rental holidays: Find out if landlords provide a rent-free period to get your office ready for use.

Long-term rental terms:

• rental period: pay attention to the duration of the contract. Is it possible to extend it under the same conditions?
• change in rental price: check whether rent indexation is possible and how often.

Technical equipment:

• Internet and communications: check how stable the Internet is and whether it is possible to carry out additional communications.
• power supply and air conditioning: make sure the reliability of engineering systems.

Condition of the premises:

• renovation and decoration: the office must meet company standards. Check who will be responsible for the repairs: the tenant or the landlord.
• security: check the presence of a security system, CCTV cameras and fire alarms.

Legal points:

• lease agreement: read the agreement carefully. Clarify the procedure for termination, the possibility of subletting the premises, and property insurance.
• legal address: if you plan to register a company in a rented office, make sure that the premises can be used as a legal address.

Environment and building status:

• image of the building: make sure that the office building matches the status of your company.
• Neighbors: Find out in advance which companies are located nearby to assess potential interaction and work comfort.

Considering all these points, you can choose an office that will be convenient and functional for your business.