By the end of 2017, the commercial real estate market recorded some recovery in demand. Irina Derevenskikh, Marketing and Advertising Director of the company Coldy, discussed the most popular types and sizes of commercial real estate, as well as potential customers’ requirements regarding the housing, with Zdanie.info portal.
The scope of new office construction in 2016 reduced dramatically; this year, the offer of new office premises remains low. Did your company feel the change in the market? If so, which types of premises are now more in demand?
— Our company’s experts note, first of all, that the requirements of both buyers and tenants have changed. Small area premises are most in demand today in retail. Experts point out that the growth in demand for them, depending on the specific characteristics of the premises, reaches 40%. Among diverse categories of office premises, offices of class «B» are becoming much more popular; offices with finished interior decoration are in demand.
How did the crisis affect the work of your company? What difficulties did you face? What do you think of the current situation in the commercial real estate market?
— We can say that the crisis has affected us positively, in our developing investment products. Our company traditionally offers various formats of ready-made rental business: from small units to large blocks. Historically, during times of crisis in Russia, one of the most popular and reliable ways to save capital is to invest it in real estate. We fully agree with this. However, we consider that it is even more profitable to invest in real estate that begins to bring in a regular and predictable income from the moment of purchase. I must say that the owners of commercial real estate that is leased may even be in a better position than the owners of leased residential housing. The reason is that commercial real estate such as offices or retail brings in long-term, several years contracts, while apartments are rented for one year.
Did your company have to implement strategies aimed at keeping tenants, in the time of crisis? Did the rental rate decrease?
We have not reduced rental rates. To attract more tenants, we did some work on finishing our premises. This attracted more customers interested in our offers: today, there are many tenants who do not want to wait and do not want to invest money and other resources in the finishing. One of the important requirements of tenants to date is to enter a fully finished building and start working immediately