CMWP: Most offices in Tashkent are built without considering tenant requirements

Commonwealth Partnership Uzbekistan Presents a New Real Estate Market Study

Approximately 80% of office buildings in Tashkent are designed and constructed with technical specifications that do not meet tenant requirements. This conclusion was reached by analysts from the international consulting firm Commonwealth Partnership Uzbekistan (CMWP), as outlined in a report available to Kursiv.

CMWP attributes the mismatch between office spaces and tenant demands to several factors: insufficient attention to building design, cost-cutting on structural and engineering works, developers’ lack of understanding of tenant needs, and the use of foreign regulations that often do not align with local climatic conditions.

Typically, office spaces are rented out without interior finishing. Exceptions to this occur in only 5% of cases. This trend is influenced by both property owners’ reluctance to incur additional expenses and tenants’ preference to have spaces customized to their specific needs. Additionally, the Tashkent market lacks specialists in space outfitting (Fit-Out services).

Regarding the cost of interior finishing, analysts estimate it ranges from $650 to $1,200 per square meter on average, excluding VAT. This cost covers work that does not include furniture and IT equipment installation.

According to CMWP, an office fit-out costing $650 increases rental rates by $11 per square meter. Currently, a property owner’s willingness to outfit and furnish an office is a strategy to secure higher rental prices.

Source: Kursiv
Photo: Benzoix / Freepik