2400 Euro per year for each. That lose their offices, if the pros are leaving
Recently, we tried to imagine how much currency is losing the country if it company will curtail its work in our country. Did it for example, PandaDoc is a company with 250 employees salaries only brings a minimum of us $6.7 million each year. This amount does not include office rent and much more.
Asked Colliers International to tell how many will not receive the economy on the example of a company that 250 people, which takes office in the centre of the city.
To accommodate up to 250 people need at least 2000 m2 (8 m2/person). Take for darowizny calculate the average rate of an office in BC class B1 (the”Kiroff”, “Riviera”, “FutuRIS”, “Royal Plaza”, etc.):
18 euros + VAT, operating costs 1,5 Euro + VAT, utility costs 1 Euro + VAT.
After simple calculation will get the annual office budget in Euro:
518 400 + 43 200 + 28 800 = 590 400, that is almost 600 000 Euro including VAT per year for a quality office B1.
Now many owners are going to meet tenants, providing a discount of 10-30% off rates on current contracts and offering the same discount when signing new contracts.
What would happen if at least 10% of the tenants the best Minsk real estate go?
— Increase the vacancy rate, therefore, the pressure on rates will increase — they will gradually decline, this in turn, can increase the activity of the companies — they will move to the premises of the best qualities at an affordable price.
The new middle will shift from 18 to 13 to 16 Euro per m2 (minus 10-30%) in case of activity in the market. Drop rates by 10% is not critical, it is not a market crash, and a lot of pressure inside the system (on rental rates in the first place).
You can talk about reputational costs, but big business probably physically can’t afford relocation. Judging by the polls within companies, there is a prevailing number of employees, wanting at all costs to go abroad.
Reputational costs likely will affect the number of new projects, the development of technology and the it industry as a whole. And the result — in the formation of the qualitative demand in the office market.
In General, the rapid development of it industry has the strategic importance not only for the office market. Of course, the lack of development or even reduction of large companies in the sector will affect the level of demand for office space: given the commissioning of new level of jobs increase, the rate will go down.
But more importantly, it was the driving force in a number of other industries, has influenced the development of the Belarusian society as a whole — the economy and the level of consumption (it professionals and their families some of the most effective), medicine, education and the further vector of development, the value system of the younger generation. Thousands of talented people focused on innovation work in the technology sector, having before our eyes the success of the Belarusian it companies. What will happen with the guidance of the talented youth of tomorrow and what country it will be tomorrow, unfortunately, unclear.
Minus us $6.7+ million just from PandaDoc. That loses the country, if you leave it On topic Minus us $6.7+ million just from PandaDoc. That loses the country, if it takes the Collapse — if the pros leave. Expert on the situation on the real estate market On the topic of Collapse — if the pros leave. Expert on the situation on the real estate market