Office renting activities in Istanbul is an unusual period. The companies that evaluate the drop in prices as an opportunity, want to sign more reasonable prices when renewing the contract. While the proportion of vacant offices in the central areas of Istanbul reaches 17 percent, experts say that the bottom level is not seen, and that it will take 12 months.
Office market moved in Istanbul. The reason for this is not the new foreign investments but the bargaining tables of companies that consider the drop in prices as an opportunity. Emphasizing that the vacancy rate in Istanbul's central business areas reaches 17%, it is a 12-month period for the bottom spot.
According to O.E.B. from Dunya Newspaper, JLL Turkey director Franc Neal explained that the most intensive work today is "to evaluate opportunities". Contract renewal is the most important trend of today. Neal said he was sitting on a bargaining table in Istanbul to improve the conditions of many companies with the decline in office rents. In this context, there are those who move from old offices to newer ones, and there are those who are moved to wider offices with more convenient rentals.
"It is possible today to find a chance to pass through the more modern offices we have rented for less. It is very right time to move, "he said. Many companies are evaluating this opportunity. "The downsizing of the companies for the economy is of course not good, but that creates a demand," Neal said, referring to an important demands coming to them as well.
Negotiations are also on the terms. When Neal was formerly held in the office, all the investments made in his office were obliged to the tenant, and now the office owner can share the costs. Last year there were 118 relocations in Istanbul, with help from a professional service company in central offices. Neal said that at least this year is expected to move. Another trend in the office market is offices that are more flexible. Neal explained that not only global companies but also big Turkish companies are in this trend.
You Can Not Manage Uncertainty
Neal, explaining his observations of the influence of Western and tensions on foreign direct investment, "of course affected, we saw this clearly in 2016. This is likely to continue, "he said. "Right now all the businessmen are in front of two different plans; They are waiting. Nobody has decided yet. You cannot manage uncertainty. You can only manage risks. The risk is also determined there. Otherwise, you would say 'wait' for a new investment. Demand at a certain point will reach a level and the business world will have to make a decision, "he said.
1.5 Years From Russia
So when? Neal replied, giving an example from his previous workplace in Russia: "In the past two years, a troubled period has passed in Russia. Everything stopped. It was not possible to foresee which way to go. Now the movement started. Turkey is 1.5 years behind that clock. I anticipate that everything will stabilize next year and that investors will start to come.
Rate of Empty Office 17%
17 percent of the offices in the central regions in Istanbul are empty today. Neal said that this ratio is at the same level in Moscow, "They came here from space 28 percent. They are recovering. If you think about it like a clock, in Istanbul the office is full at 3 o'clock and the occupancy is falling. There is a road to go further down. Moscow is on the way out. They turned from the bottom, and Istanbul did not see the dippy. "When do we come to the bottom? According to Neal, there may be a period of 12 to 18 months to see the bud. The most convenient shopping is "dip" but Neal emphasizes that the best offices will be already exhausted when it comes to the bottom spot. "That is a very good time to move for now. Such periods create significant opportunities for companies; You can do what you cannot do during the explosion period.