The capital’s business centers have developed preventive operation plans in case of potential blackouts, the availability of autonomous energy supply does not affect the level of rental rates, experts interviewed by the “Interfax-Ukraine” agency reported.

According to the head of the strategic consulting department of the UTG company Kostyantyn Oliynyk, the generators purchased as part of the BC are unable to fully provide all office premises with electricity for full-time work. However, some tenants, primarily co-working spaces and IT companies, have taken a number of measures: connecting to two or three alternative power lines, purchasing generators, connecting to the Internet from several providers, Starlink, additional drinking water tanks, etc.

Anastasiya Kachan, CBRE Ukraine’s senior office real estate consultant, said that as part of preventive measures dictated by past blackouts, an important request of the landlord remains to provide each of the tenants with sufficient power from the generator to support the functioning of the entire working infrastructure. In order to minimize losses from potential blackouts, BC management companies developed operational plans before the autumn-winter period, arranged shelters within the buildings, and also purchased and tested the necessary equipment.

“It is also worth noting that in case of repeated power outages during the heating season of 2023, the demand and attendance of offices may increase again, because offices have mostly become even more autonomous and provide employees with comfortable functioning,” – Kachan said.

According to CBRE Ukraine, the vacancy rate remains stable since the beginning of the year and as of the end of the III quarter of 2023 is 25.8%, while vacancy in class B (26%) remains slightly higher than in class A (24%).

“It should be noted that the high level of vacancy in Class A is dictated by the entry into the market of a significant volume of new supply in this segment in the IV quarter of 2022, while the vacancy in existing Class A objects has not changed much. This reflects the general trend of demand in the market, where tenants seek better quality premises at reduced rental rates, supported by favorable offers from landlords to attract more tenants,” – says Kachan.

As for rates, according to Oliynyk, they have decreased by at least 30% since the beginning of the war. “Given the increase in the cost of energy carriers, the increase in the price of utility payments, and with them OPEX, in particular due to the increase in vacancy and the distribution of operating payments to a smaller number of operators, the burden on tenants will continue to increase, and rental rates will continue to decrease in the near future,” – believes Oliynyk.

According to Anna Silvestrova, head of CBRE Ukraine’s office real estate department, as of the 3rd quarter of 2023, the prime effective rental rate remained unchanged since the beginning of the year and amounted to $21 per sq.m/month.

“Although the owners of business centers have invested in alternative energy supply of buildings, these were necessary actions to retain the tenant. Given that the demand in the market is quite restrained, and autonomous energy supply is a must-have today, its presence does not significantly affect rental rates.” – said Silvestrova.