Office crisis in Kyiv: the market faces negative supply for the first time due to the war
4 August 2025 17:48
In the first half of 2025, the Kyiv office real estate market demonstrated negative supply for the first time in history, a phenomenon when space is not just not growing, but physically disappearing, [ komersant] reports.
According to CBRE Ukraine, cited by Delo.ua, about 45,000 square meters of office space were destroyed or seriously damaged by Russian missile attacks, which led to a 3% reduction in total supply in just six months.
Losses are accumulating, security is at the forefront
Since 2022, the losses in Kyiv’s office stock have already reached 6%, but it was in 2025 that they became a record. Some business centers are so damaged that they are not expected to be restored in the near future.
“This decline significantly affects not only the quantitative indicators, but also changes the geography of demand, the structure of tenants and their needs,” comments Anastasia Kachan, Senior Consultant at CBRE Ukraine.
Security issues came to the fore when choosing an office: engineering reliability, shelter, autonomous power supply and remoteness from critical infrastructure, which is often the target of shelling.
Demand is changing: hybridity, optimization, sublease
Small and medium-sized companies adapted to hybrid work are now forming the basis of demand. Large players are reducing their office presence or changing their status. About 19% of new lease requests in the first half of the year were caused by forced relocation due to destroyed offices.
The average occupancy rate in offices is 30-40%, which encourages tenants to optimize space to 50% of the pre-war level. Preference is given to premises with ready-made renovation and flexible conditions, while space without fit-out is losing its appeal.
The market is also actively moving to subleasing and dividing large areas into smaller units, which allows business centers to remain competitive even in a crisis.
The war has radically changed the office real estate market in Kyiv. From now on, security, adaptability and efficiency of space use determine its rules.
Business centers damaged or destroyed during shelling
Toronto-Kyiv Business Center
- As a result of a missile strike on December 20, 2024, Russian forces damaged the facades, smashed windows, and destroyed part of the building. The business center housed the offices of MacPaw, Sense Bank, investment company SD Capital, and the Novus supermarket (headquarters).
- Despite the significant damage, no people were injured in the attack; the bank and other companies continued to operate as usual or with local restrictions.
Grand Business Center (Dragon Capital)
- Located next to Toronto-Kyiv, the business center suffered damage to its facade and interior as a result of the same attack on December 20, 2024.
Louvre business center (Shevchenkivskyi district)
- Partially damaged in the Lukyanivska metro station area during the attack on December 20: windows were smashed and structural damage was recorded.
Obolon Business Center (foreign broadcasting offices)
- During the missile attack on the night of April 6, 2025, the building housing the editorial offices of Ukrainian broadcasting channels (FreeDOM, UATV, etc.) was partially destroyed. The upper floors were damaged, the lower floors were heavily damaged, and there was an explosion crater nearby.
Business center in Solomyansky district
- As a result of the shelling on June 23, 2025, the facade, windows, and interior were damaged. Rescuers removed the rubble, no one was injured .
BC “Forum Victoria Park”
- Parts of the facade of the Forum Victoria Park Business Center were destroyed, glass was smashed and office equipment was damaged as a result of the shelling on June 23, 2025
Business center 101 Tower
- On October 10, 2022, the 101 Tower business center in Kyiv was damaged by shelling, where, in addition to DTEK’s office, there are offices of Microsoft Ukraine and Samsung Ukraine.
