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Façade buildings: rental business is suffering from the greedy

Advertisements “For rent”, which are hanging in the shop windows of some buildings in the Kyiv centre for months do not mean there is no demand for them. This is mostly because the owner and potential tenant cannot agree on the price. And if they agree, there is a risk they will part forever after 2-3 months – not every company can withstand such a price pressure.

Oleh Yakuba, Head of Commercial property Department at NAI Pickard, points out that rental rate varies in the range from $60 (CBD) up to $300 per sq. m. (the “very centre”: Maydan Nezalezhnosti, Khreschatyk) including VAT plus utility payments. Of course, the smaller is the space, the higher is the rental rate for 1sqm, adds the expert. More than that, the rental rate is influenced by the term of the agreement, steadiness of the relations, fit-out and status (brand) of the future tenant. “Sometimes an owner chooses a tenant who pays less rent, but has a reputation of a reliable client”- he says.

Location Total area, sq.m. Rental rate, $/month per sqm including VAT
Khreschatik, Glavpochtampt - Prorizna St. 60 250-300
Khreschatik, Glavpochtampt - Prorizna St. 250-300 120-135
Centre, Maydan Nezalezhnosti 250-300 150-200
Shota Rustavelli St. 170-220 70-90
Velyka Vasylkivska St, near metro station Lva Tolstogo 100

100

Sourse: NAI Pickard

The full version of the article is available in Russian.

05/04/2011