Compliance test

On the strength and weaknesses of the capital’s class A office centers
Compliance test

LOOKING AT BOTH

Elite office centers in Kiev, now not so much. However, despite the belonging of all these objects to the most prestigious class A, they are naturally different from each other. And sometimes it is very important that allows you to set the “first among equals”. This is what we tried to do with the help of authoritative experts.

EXPERTS:

Anna ANTONOVA, head of commercial property division at Knight Frank Ltd

Sergey KARAMNOV President of Real Estate Solutions

Valery KIRILKO, managing partner of Concorde Development

Vadim NEPOSEDOV General Director of consulting group ” Ukrainian trade Guild»

Andrey PLYUGIN Director of Astera

The main difficulty in the preparation of this rating was due to the fact that currently in Ukraine there is no single classifier of office real estate. However, we proceeded from the fact that there are a number of generally accepted basic criteria that guide market operators in determining the category of office space. The criteria we have formulated the following way:

1) location of the object, its transport accessibility

2) architectural and planning solution, engineering equipment of the facility

3) service infrastructure of the facility

4) quality of object management.

The main characteristics of office centers were evaluated on a five-point scale (although, we note, sometimes its framework was too narrow).

The final place of each object in our rating was determined by summing up the assessments of all experts and deducing the average score. Well, in order to minimize the impact on these estimates of subjective factors, we suggested that specialists first of all pay attention to the prospects of the concepts that were implemented when creating a particular object.

The result is a picture:

first place-trade and office complex “Parus “(“Elsburg Plaza»)

location of the object, its transport accessibility-5
architectural and planning solution, engineering equipment of the object-5
service infrastructure of the facility-4,5
the quality of object management-4.5.
Total-19 points

second place – business center “Millennium»

location of the object, its transport accessibility-5
architectural and planning solution, engineering equipment of the object-4
service infrastructure of the facility-4,5
the quality of object management-4.
The amount of 17.5 points

the third place was shared by the business centers “Dominant” and ” Podol Plaza»

«Dominants’»:

location of the object, its transport accessibility-5
architectural and planning solution, engineering equipment of the object-4
service infrastructure of the facility-4
the quality of object management-4.
Amount-17 points

“Hem Plaza»:

location of the object, its transport accessibility-5
architectural and planning solution, engineering equipment of the object-4
service infrastructure of the facility-4
the quality of object management-4.
Amount-17 points

fourth place-office and shopping center “iceberg»

the location of the object, its transport accessibility-4,5
architectural and planning solution, engineering equipment of the object-4
service infrastructure of the facility-4
the quality of object management-4.
The amount is 16.5 points.

IN ORDER TO BECOME!

“SAIL” (Mechnikov street, 2).

№ 3 08, rating KN 1 is located in the business center of Kiev.

Nearest metro stations: Klovskaya-200 m, Palace of sports-500 m.

The distance by the shortest road to Khreshchatyk is 1.2 km; Central bus station-4.6 km; railway station-3 km; airport “Kiev” – 7.8 km.

The total area of the building is 75 thousand m2.

For rent-46 750 m2.

Number of floors-33.

Commissioning-2007.

Unlimited number of telephone lines, climate control.

Underground 4-level Parking for 300 cars.

Infrastructure: two conference rooms, shops, a dining room for employees, a cafe, a luxury restaurant, related and consumer services (post office, Bank office, photo Studio, copy center, dry cleaning, fitness center, travel Agency, ticket office).

The layout of the premises-open space.

Occupancy-85%.

Main tenants – “Interpipe”, “Olympus”, “Raiffeisen Bank Aval”, TNK-BP, “AWT Bavaria”.

In principle, the leadership of “Sail” was not a big surprise. The highest presentable office building in the country today became one of the most remarkable Kiev new buildings of 2007. According to experts, “Elsburg Plaza” – a great combination of the advantages of the Central location with modern architectural and planning and engineering solutions. In addition, this object has a developed infrastructure and quality service. It is important that the concept of “Sail” for the first time among the business centers of this class provides for the lease of entire floors and individual blocks of 600 m2. At the same time, the cost of rent here reaches $58/m2 without VAT and related payments, which, according to some experts, is too much even for a business center of this level, although it is not the maximum for the capital. Thus, the price of rent in BC “Leonardo” (2nd phase) is $70/m2 without VAT.

Experts also pointed out other “cons” “Elsburg Plaza”: first, very difficult transport accessibility of the complex due to constant traffic jams on the surrounding streets and, secondly, the lack of Parking spaces.

“MILLENNIUM” (St. Vladimir, 12).

№ 3 08, KN 2 Rating is in the business center of Kiev. There are many popular cafes and restaurants nearby, as well as museums, art galleries, etc.

Nearest metro stations: “Golden Gate” -1 km, “Maidan Nezalezhnosti” – 0.8 km.

The distance by the shortest road to Khreshchatyk is 1 km; the Central bus station is 6.1 km; the railway station is 3.5 km; the airport “Kiev” is 8.9 km.

The total area of the building is 8 thousand m2.

Number of floors-9.

Commissioning-2000.

Parking-open for 15 cars, underground-40 cars.

Unlimited number of telephone lines, climate control. There is a restaurant.

The layout of the premises-open space.

Occupancy-100%.

The main tenants until recently were IMA Group, TACO, Panasonic, WBB, SAP AG, Baker & McKenzie, Da Vinci, Servier Int., Nafta-Service, but now their composition has changed completely.

Problems with Parking and transport accessibility are characteristic of the business center “Millennium”, which took the second position in our ranking. In addition, here it is necessary to add some difficulties with engineering (inefficient air conditioning system) and the lack of this business center’s own full-fledged territory, as well as problems with Parking. Although, of course, to some extent this is offset by the rich interior of the building, as well as magnificent views of the dome of St. Sophia, St. Michael’s Golden-domed Cathedral and St. Andrew’s Church.

“DOMINANT” (Basseynaya street, 4-b).

№ 3 08, Rating KN 3 is located in the center of Kiev, near a lot of cultural and historical places and business, office, commercial real estate.

Nearest metro stations: “Palace of sports” – 0.2 km, “Leo Tolstoy” – 0.2 km, “Khreschatyk” – 0.75 km, “Theater” – 0.7 km, “Klovskaya” – 0.7 km.

The distance by the shortest road to the Central bus station-4.4 km; railway station-2.7 km; airport “Kiev” – 8 km.

The total area of the building is 3.7 thousand m2.

Number of floors – 6.

Commissioning-2003.

Two-level underground Parking (total per quarter) for 400 cars, where BC allocated 80 Parking spaces.

Unlimited number of phone lines. Central air conditioning, ventilation, water supply, power supply, fire alarm system. There is an ATM.

The layout of the premises-open space.

Occupancy-100%.

The lessee – LLC “K. A. N. development.”

“PODOL PLAZA” (Skovoroda street, 19).

№ 3 08, the Rating of KN 4business center, although not formally included in the zone of the business center of the capital, but as close to it. In addition, the Hem is the historical center of the city.

Nearest metro station: Kontraktova square-0.7 km –

The distance by the shortest road to the center (Khreshchatyk) – 2.6 km; Central bus station-8 km; railway station-6 km; airport “Kiev” – 10.2 km.

The total area of the building is 18 355 m2.

Number of floors-9.

Commissioning-2000.

Parking-open and underground, only 145 Parking spaces.

Unlimited number of telephone lines, climate control.

The layout of the premises-open space.

There is a Bank branch, cafe, restaurant.

Occupancy-100%.

The main tenants are Philip Morris, JTI, Jansen Silg, Microsoft, Intel.

Regarding the business centers “Dominant” and “Podol Plaza” we can say that they are United not only the same place in the ranking, but also in many ways similar image. Both of them look like such modesty with great opportunities: not too catchy appearance and standard interior decoration they are combined with good functionality, which is provided by highly qualified managers. Traditional for Kyiv offices of the elite “weakness” – lack of Parking spaces, shall we say, non-ideal transport accessibility – alas, here, too, there. Also note that the” Dominant”, according to experts, little advertised, and besides there is not quite adequate rental rates.

“ICEBERG” (Zhilyanskaya str., 73 to 79).

№ 3 08, Rating KN 5 is located on the street. Zhilyanskaya, which is rapidly turning into a modern business street of the capital. There are large Ukrainian and international banks, financial companies.

Nearest metro station: Vokzalna – 1 km; “Leo Tolstoy” – 1.5 km, the Republican stadium is 1.5 km away.

The distance by the shortest road to the center (Khreschatyk) – 2.5 km; Central bus station-4.6 km; railway station-1 km; airport “Kiev” – 6 km, airport “Boryspil” – 50 km.

The total area of the building is 39 thousand m2.

For rent-25 500 m2.

Number of floors-14.

Commissioning-2006 (partially), 2007 (fully).

Underground two-level Parking for 150 cars, ground Parking for 40 cars.

The layout of the premises-open space.

There are two conference rooms, shops, cafeteria.

Occupancy-100%.

The main tenant – Samsung Electronics, “ARMA motors”, Nokian, Luk-Aftermarket, Nissan, “Orans”, “Plasmatech” Studio “We.”

As for the office and shopping center “iceberg”, this is the case, experts believe, when a good idea spoiled not very successful execution. As a result, failed to realize until the end the potential is definitely interesting object.

* * *

If we talk in General about the immediate prospects of all considered business centers, they, no matter what, experts see in pink. This is explained by the fact that the land in the city center, suitable for the construction of modern BC class A, is now very small, and their number is decreasing every year. Meanwhile, the volume of construction of elite offices in Kiev is very small, and a significant increase in the coming years is not expected. According to the boldest forecasts of experts, the balance between the demand for high-class offices and supply will not come earlier than 2012. In such cases, there is no serious competition among BC of the highest category. Because today are in demand not even very successful projects.