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21% of companies plans to increase real estate costs in 2011 year
19.04.2011 2720

21% of companies plans to increase real estate costs in 2011 year

21% of companies plan to increase real estate costs in 2011. This conclusion was reached by GVA Sawyer specialists as a result of the company’s II annual research of demand for high-quality office real estate.

In order to identify the relationship between the general economic characteristics of the companies, their plans for the next six months to a year and the demand for office real estate, GVA Sawyer and a law firm DLA Piper conducted a survey of large companies in Moscow and St. Petersburg, typical office tenants. Investment, financial and legal companies were interviewed, as well as companies in the trading, raw materials, manufacturing, construction and other sectors.

“Comparison with the results of the previous survey, conducted in the spring of 2010, allows us to speak of an increase in optimism in the development of companies in Moscow and St. Petersburg,” notes Vyacheslav Fadeev, Head of the Department Marketing Department Consulting Company GVA Sawyer. “The drop in income has practically ended, there has been an increase in office real estate costs, not only due to the growth of rates, but also with the need to develop the business.”

As a result of the study, it was found that over the year, 53% of companies increased revenue, 38% remained at the same level. Only 9% of the companies surveyed reduced their income.

Next year, 74% of respondents plan to increase the income of their company. None of the respondents expected a reduction in income.

The increase in real estate costs over the past year occurred in 28% of companies. About 19% of companies have reduced spending on office real estate. Interestingly, in the spring of 2010 (during I survey) planned to increase spending only 6% of companies, but actually increased spending on real estate about 28%. It should be noted that only 2% increased spending due to an increase in the rental rate, and 24% due to additional leases or the purchase of space.

Now 21% of companies plan to increase property costs in the next six months or a year. In the spring of 2010 there were only 6% of such companies.

Basically, the increase in real estate costs is planned by companies in the B2B sector and trade. Moreover, if earlier growth in rental costs was assumed by 8% of companies in the B2B sector, now it is 30%.

The data obtained as a result of the survey allow us to conclude that the activity of retailers and companies in the B2B sector, which are quicker than others recovering from the crisis and need new areas, has increased compared to last year.

The next survey is scheduled for late 2011.

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GVA Sawyer Brokerage Department exists since 1996, operates throughout Russia and carries out rental and sale transactions in all segments of commercial real estate. 

21% of companies plan to increase their real estate costs in 2011. This is the conclusion made by GVA Sawyer specialists as a result of the II annual survey of demand for ...
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