What changed in two years with the market of lease of a commercial real estate in Rostov-on-Don

During the period from September, 2014 to September, 2016 some changes in price policy of owners of non-residential premises in a segment of offers on lease were observed. More than 70% of owners built the cost and indexation proceeding from general logic of the population, including the panic moods connected with sharp changes of the currency rate. However in some cases deduction of a rental rate for a period of 6 up to 12 months at the previous level without indexing of cost (the period of 2015, the first quarter 2016) affected business relations of the lessee and lessor more favorably.

For an example we will consider a market situation on one of objects in the territory of Rostov-on-Don.

In 2011 between the owner and the organization the lease contract of the non-residential premise on B. Sadovaya St. (Kirovsky district) at the average market rate of 1.400 rubles for 1 sq.m/month for a period of 10 years in which the parties agreed about annual indexation no more than 10% was signed. In the first quarter 2015 at the initiative of the lessee the rate of 1.863 rub/sq.m/month was reviewed by the owner towards reduction to 1.490 rubles (that is close to a four-year minimum), however the parties agreed that temporary this measure and for completion of year a rate will be increased by 10%; by result of negotiations for January 1, 2016 the parties came to the mutual decision that the cost of a rental rate will constitute 1.639 rub/sq.m/month based on data on the prices and proposals (lease of non-residential trade and office premises) of Kirovski and a part of Lenin Rostov-on-Don of the areas, in borders of streets: Budennovsky Avenue of B. Sadovaya St., Kirovsky Avenue.

Today on a market situation for the fourth decade 2016, the minimal cost of lease of one square meter of the non-residential premise constitutes 1.250 rubles, not including payments for utilities and other servicing of rooms and the adjacent territory of the building.

Offers (the area from 250 to 500 m 2) on the ground and second floors are taken as a basis (trade rooms, servicing of the population and so forth) B. Sadova, Voroshilovsky, on the main administrative and historical prospectuses: B. Sadovaya St. (highest pedestrian and automobile "cheloveko-flow" (from these people / hour on the separate taken piece)), Budennovsky Ave, Kirovsky Ave, Voroshilovsky Ave and some crossing lanes B. Sadovoy in a zone of 50-100 meters. In some cases in 2016 the cost of 2.100 rubles for square meter a month which was specified in the lease contract registered in justice more than one year is fixed. For reasons of confidentiality and the signed agreement (about nondisclosure) between the parties, transaction details, such, as: the room address, the name of the organization of the lessee and other data, including data on the owner aren't disclosed. 

From the provided information, and also practical realities of the Rostov real estate market and its participants (community of professionals, including members of UPN and certified (according to RGR) specialists of Brokers and agents), it is possible to draw a preliminary conclusion that the average market rental rate on front trade and office premises of non-residential fund constitutes 1.675 rub/sq.m.

However, considering complexity and requirements imposed by the potential Lessee by search, we will note that on an equal basis with the actual arrangement of an object a key role is played by technical condition of the building (material and a condition of capital overlappings and bearing walls), its engineering communications (communication, water supply, water disposal, the got electric power), an esthetic type (architectural appearance of a facade and internal rooms), availability of favorable social conditions (proximity of stops of general transport, healthcare institutions and education), and also availability of an entrance node to visitors and citizens with limited functionality (disabled people, the Second World War, etc.). Among real estate professionals and in a business community Kirovsky administrative area of Rostov-on-Don is highly - demanded, has a prestigious arrangement and the increased demand exceeding the offer (according to specialized Internet platforms and internal accounting of requests of clients).

The expert of the market of the elite real estate of the company Maralin Ru - Ivan Butenko