The share of vacant office space in Moscow continues to decline
Due to the growing business demand, the vacancy rate of office space in Moscow continues to decline for the second year in a row. In the first quarter of 2025, this figure reached 4.8 percent, showing a new low since 2018. This was announced by Deputy Mayor of Moscow, head of the Moscow Department of Economic Policy and Development of the city Maria Bagreeva.
"The decrease in office space vacancy has been observed since the first half of 2023. Business activity in the city is growing, and companies need new workspaces to expand their business. At the end of the first quarter, the vacancy rate as a whole reached 4.8 percent, a decrease of 2.4 percentage points compared to the same period last year. This is the lowest figure since 2018. The share of vacant Class A premises decreased especially noticeably — by 4.6 percentage points, in the B segment — by 1.1 percentage points. According to analysts' forecasts, at the end of 2025, the share of vacant offices in the capital will not exceed 4.7 percent," said Maria Bagreeva.
The high demand for office space and the limited supply on the market also stimulates the growth of rental rates. The average rate at the end of March reached 28.6 thousand rubles per square meter, an increase of 28 percent over the year. At the same time, the cost of renting Class A offices increased by 16 percent, while in category B rates increased by 23 percent.
The volume of office space purchase and lease transactions in the first three months of the year reached 0.36 million square meters, almost unchanged from the first quarter of last year. The main tenants and buyers were companies operating in IT and telecommunications, the construction sector, professional services, and manufacturing. They accounted for more than 60 percent of the sold areas.
In January — March of this year, 35.1 thousand square meters of office space were commissioned in Moscow, which is 2.7 times higher than in the same period last year. Despite the intensive construction of new facilities, demand continues to outpace supply. This situation indicates not only the demand for modern office space, but also the potential for further development of the commercial real estate market.
Experts predict that the positive dynamics in the office real estate market will continue in 2025. This will be facilitated by steady business demand and active construction. Over 800,000 square meters of office space are expected to be commissioned this year, including large facilities with an area of more than 100,000 square meters.
"Currently, over 60 business facilities with a total area of more than 1.6 million square meters are being built in the capital. At each stage of construction, Mosgosstroynadzor specialists conduct on-site inspections to assess the compliance of the completed amount of work and the materials used with approved design solutions. This allows us to guarantee the reliability and safety of buildings during their further operation," added Anton Slobodchikov, head of the department.
