Office for lease: analysis of prices vs. location

The appearance of specialized business centers is a trend which has appeared in Ukraine not so much time ago. Since various industries have been developing and the requirement for having a separate office has become rather strong. Moreover, not many firms and companies can afford to have a separate building for placing all their personnel. Thus, renting several offices/rooms or floors in a business center is not something weird these days. As the demand is growing, the number of business centers is also growing. In our overview today we will analyze rental prices in the main IT outsourcing cities of Ukraine: Kyiv, Kharkiv, Lviv, Dnipro, and Odesa. There exist the following types of offices: classes A, B, B+ and C. The class is usually defined by the location of the building, presence/absence of furniture, internal state of the building, parking, cleaning, security, etc.

Kyiv. Capital city has always been an attractive place for doing business, hence, there is a high demand for rental areas. Due to tough times for Ukraine, many small firms and big companies moved their businesses from the east of the country to different regions. Kyiv became the leader among them, thus, the demand has overcome the supply. Yet, many companies relocate their offices due to the growth or staff redundancies. More or less, the market today tries its best to satisfy all the demands related to location, pricing, area, etc. For now, Kyiv is supposed to be the only city in Ukraine offering A-class offices, the rent for which starts from $25 for the square meter (this is considered the cheapest variant at the end of 2015) and reaches $40 in the central part of Kyiv. If the office center is located farther from the center, even if it belongs to A-class its price will start at $15 per square meter. However, the price per square meter in high-class offices depends on dollar rate. If we speak about C-class, again depending on its location, the price is settled in hryvnias regardless dollar exchange rate. Rental payment for B/B+-class offices in remote areas from the center start from $8 to $16 (here district and condition of the building determine the price). Whenever you decide on renting the office in the capital city, analyze the market offers by the following points: - location; - building state (whether there is a need for significant repair works or not); - distance to subway or bus stops, etc.

Kharkiv. Kharkiv offers a significantly enough amount of offices, hence, the market does not lack working space. Most of the offices here belong to B/B+ and-class premises. The price starts from $2 at the cheapest. Kharkiv estate agencies offers differ depending on the floor, district and distance to public transport stops. According to various sources, many offices’ rent is defined by dollar exchange rate. Currently, rental payment for offices in new business centers starts from $4. As in many cities, these also have parking, security and cleaning service. The significance of these issues matters, since, small offices do not have the aforementioned. Another benefit is that if you are considering the long-term agreement, rent might be lowered.

Lviv. The Western center of Ukraine’s IT hub is the third in the list of the main IT outsourcing destinations. The current supply of offices in Lviv meets the demand of the industry. However, there are no business centers offering A-class premises. The first one is expected to be finished by the end of 2016. For now, the price for office rent starts from $3 and can reach $15. Mainly, what is paid attention to is secure and enough parking places, spacious and bright rooms and other facilities necessary for successful job performance? So far, Lviv has several big business centers located both in the central part and residential areas. All of them are within easy reach, in case a worker does not have a personal vehicle. Despite big business centers it is possible to find small separate buildings, however, the rent seems to be more expensive, since, in that case, one company should pay for parking service, cleaning and other support by one’s own. For big companies, of course, this is not such a huge problem, but for the small ones and start-ups, renting separate rooms or locating in co-working (which are becoming extremely popular in the city as well), is more affordable.

Dnipro. No. 4 in the rank of IT top centers, Dnipro is strengthening its position as, unfavorable conditions have been caused by the military action taking place not that far from the border of Dnipro region. Local IT luster is doing its best to develop the industry there and not to let its specialists leave. The city also does not offer A-class offices, but the market has a huge supply of B/B+ ones. The rent starts from $2 and grows depending on what the office includes. Usually, furniture (at least part of it) can be found in the office but the price would be undoubtedly higher. As many companies do not want to care about furniture search at once, they agree to pay more. But eventually, buying own turns out to be less expensive Since certain requirements have occurred automatically, many constructors create such offices to attract as many clients as possible.

Odesa. Southern Palmira has been claimed to be the best place for living and working due to its location and benefits like seaside. Many specialists say that have chosen Odesa for its climate and possibility to relax by the sea after tough working day. What concerns the availability of premises, the city has plenty of them. There is no a problem for finding the appropriate office. The prices there also start with $3,5 and reach $15 at the most. There are no such a big number of business center like in Kyiv, most of the office are located on the first floors of residential buildings or trade centers. However, this does not seem to interrogate with the demand. Many companies prefer renting a place where their company will be solely located with no strangers coming and leaving (except the clients of course). Since IT companies do not have many visitors, this option is the most secure and allows avoiding undesired people in.

The choice for preferable premises for locating and conducting your business really matters if you strive for creating appropriate working atmosphere. The market is now full with various offers, thus, there should be no problem with opting for the certain one. Moreover, the availability of rental space opens the market for new clients and companies.

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