Denis Borodako, CEO of Dominanta Development Company, has taken part in MID YEAR RESULTS 2024, the customary regular meeting of commercial real estate market players, where he identified which office formats are the most popular among investors.

For reference: Dominanta is currently working on QOOB, a Class A business center on Alexey Sviridov Street, at the intersection of Kutuzovsky Avenue and Rublyovskoye Highway. It will include two buildings with a total area of 21,450 square meters, with one building (10,800 square meters) designed to be sold as a single unit. Commissioning is scheduled for Q4 2025.

The developer plans to launch another office project in the fall.

"Based on our experience, we've concluded that so-called small-cut office spaces are in maximum demand right now. For example, at our QOOB Business Center, areas from 53 to 100 sq.m. are very popular. And we can understand why. The budget for such premises is comparable to the cost of an apartment. There's already a trend where private investors or individuals looking to preserve their savings buy two apartments and one office. The next most in-demand format is an entire floor dedicated to a private business. And the third popular option is buying a building or block with its own access point, around 10,000 square meters in size. One of the QOOB Business Center buildings is being sold as a single lot, and we're in negotiations with several buyers. We also have clients interested in buying a building that's part of our second office project, which we haven't even announced yet," said Dominanta CEO Denis Borodako, CEO.

The expert also drew the audience's attention to street retail premises in residential complexes. Today, it's not uncommon for clients to enter deals on terms that are not favorable to them economically, provided the property is in a good location.

"We've concluded that, when selling street retail premises, it's impossible to maintain the same concept for the complex that was planned initially. Which is why we have made a radical decision to stop selling such premises altogether and are transferring them under the operational control of the management company. We'll direct the positive cash flow from leasing towards maintaining private infrastructure for residents," comments Denis Borodako.

When it comes to forecasts, the expert is convinced that the office real estate market will not be slowing down over the next three years. It will still take a long time before the current demand for high-quality lots is fully met.