Office Hunters Look to Outskirts

Lower prices are sending renters seeking office space outside of the city center and closer to the edges of the city, a recent study by CB Richard Ellis showed.

According to the study, the area between the Third Ring Road and the Moscow Ring Road saw 48 percent of all new office space constructed in the first half of 2008, while accounting for only 30 percent of new office space in 2007.

Major projects completed in 2008 include the Riga Land business park on Novorizhskoye Shosse, which sits on 36,200 square meters, the 25,800-square-meter Profiko business center on Krilatskiye Kholmy Ulitsa and the 25,100-square-meter Yuzhni Port complex on Yuzhnoportskaya Ulitsa.

One of the main reasons that businesses are choosing to move outside the city center are the lower rental prices -- while a Class A office complex in the city center is let for $1400 to $2500 per square meter, a similar space goes for only $900 to $1400 closer to the MKAD, Colliers International reported.