Yerevan Office Market 2018
Business Centers
Overview:
The Armenian office market is mainly focused on Yerevan, The vast majority of office stock is located in so called Central Business District.
The Central Business District, is located in the Southern part of Yerevan downtown, on the area connecting 3 major squares, Russia Square, Republic Square and Sakharov Square. The area hosted most of business centers, banks and governmental buildings and close to the main retail shopping streets (Northern ave. and Abovian st.), is in particular popular with domestic and international companies. Imposing government office buildings are located along the main square of fo the city, Republic Square. However, the main difficulty is the low availability of car parking in the centre, and especially in current area. There is certainly demand for the city centre from international
and domestic firms i.e. auditors and lawyers, as well as IT and telecom companies. The majority of buildings are ‘B’ Class office buildings located in this area with a few ‘A’ Class office buildings refurbished and improved in the last couple of years. The biggest office location, Elit Plaza, comissioned in 2012 is a 18 floor (24.000 sq.m) A Class business center located next to the Cenral Bank of Armenia.
Furthermore, currently the first in Armenia business center named KAMAR is going to be BREEAM certified upon complition in the Q1 2017. KAMAR Business Center is an upscale Class A office building in the City Center of Yerevan, Armenia. The building has a prominent and highly visible location on Shahumyan Square. The complex is comprised of a 9-story totaling 23,100 square meters, 14,300 of which is the Net Leasable Area.
Supply:
The Completion of 2 new Class A business centers (Piazza Grande and Yerevan Plaza) has pushed the the volume of modern office stock towards app. 15,000 sq m at the end of 2011 and the commission of Elite Plaza in 2012 rised it for another 24,000 sq m. All three office buildings are located in Central Business District, next to each other. Although, the realization of the first in the region BREEAM certified business center KAMAR has been announced for 2015, the completion dates have been postponed. The delay of construction work to KAMAR has postponed the previously announced increase in modern office stock for the year. However, constuction works are very active now and planed completion is the Q1 2017. With the completion of this modern complex, which is located directly between Piazza Grande, Elite Plaza and Yerevan Plaza, the market will be enriched with additional Class A 14,300 sq m NLA.
Demand:
Market entrance of the major international retailers and companies as Carrefour, Dufry and Inditex, increased the modern office stock demand in Yerevan mostly in Class A and B segments. Also the booming IT/Telecom sector is hosting more and more international giants like Oracle, Nokia, Microsoft, EPAM and Synaptics also has rised the demand epsacially in A class buildings.
However, due to traditional big number of SMEs in the country, demand in Yerevan office market is mostly storng in lower segment. Class C business centers as IT Park, Viasphere Technopark, Eraz are located far from the downtown but ussually offer pretty developed, comfortable and friendly invoirment and infrastructure.
Rents:
Prime rents currently stand at approximately €20-25/m²/month (Class A). Class B rents are arround €15,5-20/m²/month and Class C rents are €8,5-13,5/m²/month. With signs of economic improvement across Europe, prime rents remain rather stable.
MARKET BEAT
