BAKU, Azerbaijan, October 6
By Tamilla Mammadova – Trend:
Rental prices in business centers in Georgian Tbilisi have decreased by an average of 10-30 percent, Trend reports via the international real estate company Colliers International.
In particular, in the second half of 2020, the average rental price for premises in business centers was $ 14.4 per square meter. During the reporting period, the largest decrease in the cost of rent in unclassified business centers located in the former Soviet administrative buildings - where rental prices fell by 4 percent, to $13.8 per sq.m.
Prices for premises in class-A business center decreased by 2 percent and amounted to $22.2 ha per square meter. Real estate in class B office buildings fell by 1 percent, which now stands at $ 4.3 per square meter.
In class A office buildings, the rental price has remained unchanged and is $ 11.3 per square meter.
According to Colliers International experts, the occupancy rate of class A and C business centers has decreased, which is primarily due to the coronavirus pandemic. At the same time, 21.5 percent of the premises remain vacant in class A business centers, 16.5 percent in C-class centers, and 14 percent in B-class office buildings.
The vacancy rate in unclassified business centers is 7.2 percent. On average, free space in business centers is 13.6%, which is 0.1 percent less than in the same period in 2019.
The report also talks about potential tenant migration. According to the findings of Colliers International, 61 percent of the space in business centers is occupied by banks, construction, and trading companies. In a pandemic, financial companies are the most vulnerable in terms of the risk of non-payment for rent, which means that companies of this profile in a pandemic are more exposed to the risk that at some point they will not be able to pay rent.
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