Light at the end of the tunnel for the Kyiv office market?

As DTZ’s Office Agency team finish 2009 with a number of major office transactions and continue with strong start to 2010, could this be an indicator that the office market is now at the point of recovery?

In quarter four 2009, DTZ secured the first major letting of the second tower at Horizon Park Business Centre Phase II, acting on behalf of ISA Prime Developments. The 3,500 sq m letting enabled major IT outsourcing company, Ciklum LLC, to consolidate their office space and provide for future mid term expansion requirements. In another major transaction DTZ, again acted on behalf of ISA Prime in securing the letting of 1,050 sq m to international chemicals giant BASF, who took the remaining space in building one at ISA’s Horizon Podil development.

Other lettings involved the leasing of 1,300 sq m at Protasov Business Park at 2/1 Grinchenko St., 350 sq m at FIM business centre at 1 Magnitagorskaya and deals were closed at Panorama Business Centre and Leonardo Business Centre Phase II.

In January 2010, DTZ acting on behalf of KPMG secured a new 2,500 sq m lease at the Baroque Centre at 11 Mikhailivska, including securing an additional 515 sq m to cater for KPMG’s future expansion requirements. Additionally DTZ secured the letting of 888.8 sq m to OS-Direct at Vector BC, DTZ acted on behalf of Vector BC.

Between November 2009 and the end of January 2010, DTZ acted on around 9,900 sq m of leased space.

Nick Cotton, DTZ’s Managing Director commented, “The Ciklum deal particularly is further evidence of the recent trend amongst large scale occupiers to seek to consolidate their current offices and provide future mid to long term expansion options. As a result, we are now beginning to see a diminishing supply of quality options for larger occupiers, particularly around the Grade B/B+ range.”