Lviv, which in 2022 became the main hub for businesses from the central and eastern regions, is now facing an oversupply of office space and falling rental rates. About. Podrobnosti.ua wrote..
"Demand from IT companies has dropped significantly, and now the share of unoccupied offices in Lviv is even higher than in Kyiv. Large deals have virtually disappeared, while small offices of 100-300 sq m are holding the market." explains Roksolana Pirtko, an expert with over 15 years of experience in the market, CEO of Roksolana shopping mall and Spartak shopping centre in Lviv.
The market is developing unevenly. According to Roksolana Pirtko, the contrast between Roksolana and Spartak is clearly visible:
"At Spartak, about 20% of space remains vacant, and we have stopped the second phase of construction until the end of martial law. In contrast, Roksolana has only 10% of empty space. We managed to maintain stability by investing in generators and autonomous systems."
However, even modern centres are affected by external factors. "The occupancy rate is affected by cuts in the IT sector, mobilisation activity and a decline in foreign orders. This makes the market unstable, despite domestic investment," adds Roksolana Pirtko.
According to Roksolana Pirtko, the situation will remain challenging in 2025: rental rates will remain relatively stable, but demand will continue to be concentrated in small and medium-sized offices. "The recovery of full demand will only be possible after the war ends and the economy stabilises," she concludes.
