Text c: office space race

ongoing – происходящий в настоящее время

to prompt – побуждать

speculation – размышление, обдумывание

to evolve – развивать(ся), развертывать(ся)

to launch – начинать, предпринимать

primary – основной, важнейший, главный

concern – беспокойство, тревога

prediction – предсказание; прогноз

supply – предложение (напр. товара и т.п.)

headquarters – штаб-квартира

domestic – отечественный

draw – то, что нравится, привлекает; приманка

availability – наличие

monetary – денежный, кредитно-денежный; валютный

to drive (drove, driven) – подгонять

to multiply – увеличиваться

to apply – применяться, быть применимым

share – доля

bold – смелый, дерзновенный

to exemplify – служить примером; иллюстрировать

trend – тенденция

leaseholder – арендатор; съемщик

suburbanization – рост населения, живущего за чертой большого города

exorbitant – непомерный, чрезмерный

to compel – заставлять, принуждать

to outstrip – обгонять, опережать

estimate – оценка

to exceed – превышать, быть больше

nevertheless – однако; все же

to necessitate – делать необходимым, требовать

review – пересмотр

to put off – откладывать, отсрочивать

to terminate – завершать

backdrop – фон, на котором развертываются события

eventually – в конечном счете, в итоге, в конце концов

as of yet – пока еще; до сих пор

tenant – арендатор

to snap up – раскупать, расхватывать, разбирать

facilities – сооружения, здания

adjustment – изменение, регулирование

premium – высшего качества, исключительный, первосортный

The ongoing crisis on the real estate market, particular­ly in the office real estate sector, has prompted considerable speculation as to how the situation will evolve: Will rents continue to grow? Will office demand continue? Will new projects be launched, and already started ones completed? These questions are a pri­mary source of concern not only for developers, but also for buyers and renters of office space. Despite the uncertainty, the prediction is that the market will stabilize and the quality of supply improve.

Recently, the office real estate mar­ket has reached its peak. Not surpris­ingly, Moscow is Russia’s largest administrative, economic and business center. The capital is the headquarters of leading domestic and multination­al companies, federal agencies, public organizations and research centers. More than one-third of employed Muscovites work in economic sectors where demand for office space is the highest. In short, the Russian capital is a big draw for many regional and international companies. In the past five years, Russia has enjoyed a healthy macroeconomic situation, while the availability of monetary resources in the economy has driven demand for office space. During this time, the scale of investment projects has multiplied.

Just 10 years ago, the construction of an office or shopping center with a total area of 10.000 to 20.000 sq m was considered a large project. Nowadays, by comparison, “large” can only be applied to complexes with 50.000 to 100.000 sq m.

But what about the quality? Over the past several years, the share of Class A projects has been constantly grow­ing. A case in point is the construction of the Class A “Morozov” business cen­ter in place of Class В “Krasnaya roza” complex. Bold projects, such as Avilon Plaza, Espace, Varshavskaya Plaza, Magistral Plaza, and Novoostapovsky exemplify a trend toward the decentralization of Moscow’s office market and the development of areas that 10 years ago were regarded as unfit for construction of international class office centers.

The combination of several func­tions (residential, office, commercial) within one large-scale project is a new trend, resulting from increased com­petition and developers striving to meet the ever-growing requirements of future leaseholders. Business parks such as Riga Land, Khimki Business Park and Borovsky BTs have been built outside city limits, illustrating a trend toward the suburbanization of Moscow’s office space market. Traffic conjestion and Moscow’s exorbitant prices com­pel many companies to relocate their offices to areas outside of the capital. Furthermore, demand has been out­stripping supply for several years in succession, thus, lease rates have been constantly growing.

According to estimates, potential demand for all types of office space is no less than 10.5 million square meters. Thus, with an estimated 8.8-9.5 million square meter increase in supply, potential demand should still exceed potential supply. Nevertheless, the ongoing economic and financial crisis necessitates a review of some market development forecasts and assessments. Many com­panies have to put off the lease of new office space and even consider termi­nating some of their current leases. Against this backdrop, the high num­ber of ongoing or proposed projects gives potential renters hope that rent costs could eventually fall. As of yet, the crisis has not pushed rent prices downward and the share of vacant space upward. However, there have been serious difficulties finding tenants: 25-30 per­cent of office space brought into serv­ice so far this year remain vacant. Compare this situation with last year, when the majority of good quality offices were snapped up by prospective tenants at the construction stage.

The market should stabilize within the next one or two years, with rents expected to freeze before falling. With unfavorable macroeconomic trends, the share of vacant office space will rise (up to 15-20 percent).

Changes in the market situation will lead to a gradual redistribution of demand in favor of “better conceived” facilities with corresponding adjustments in rents and sales. The share of premium facilities will increase.

Ex.1 Give Russian equivalents:

office real estate sector; office demand; to complete started projects; to improve the quality of supply; in short; the scale of investment projects; by comparison; to grow constantly; in place of; to meet the ever-growing requirements; traffic congestion; for several years in succession; some market development forecasts and assessments; the majority of good quality offices; to terminate one’s current leases.

Ex.2 Give English equivalents:

заставить серьезно задуматься; несмотря на неопределенность; достигнуть наивысшего подъема / расцвета; научно-исследовательские центры; за последние несколько лет; считать непригодным для строительства; крупномасштабный проект; возросшая конкуренция; за чертой города; спрос опережает предложение; в такой обстановке; ввести в эксплуатацию; на стадии строительства; неблагополучные тенденции в экономике; в пользу чего-л; на фоне финансового кризиса.

Ex.3 Answer the following questions:

1. What sector has been particularly effected by the ongoing crisis on the real estate market?

2. What problems interest developers, buyers and renters of office space most of all?

3. Why has the office real estate market in Moscow reached its peak?

4. Is there any difference between the current scale of investment projects and those of 10 years ago?

5. How does increased competition influence the office real estate sector?

6. What prompts the suburbanization of Moscow’s office space market?

7. What is the prediction for office space through 2012?

8. Have there been serious difficulties finding tenants so far?

9. When should the market stabilize?

10. What will changes in the market situation result in?

Additional exercise

Read the title of the text. Then choose the right answer to the question: What is the article about?

A Young people studying art and the architecture of old buildings.

B Students living in places that used to serve other purposes.

C Stylists who give advice to students on how to convert old places.

The Art of Living in Style

Converted spaces and older places lend style to student living

Before you go to the nearest Huge Apartment Megapiex to find your living space for the next semester, let it be known that there are alternatives. With a little patience and time to search around Tucson’s historic downtown and university areas, you may be able to find an older residence that makes up in style for what it lacks in modern conveniences, a place that had been many, many things before it became a place for you to call home.

Lauren Benz and her four room-mates live in studio Apartments, in the mostly commercial downtown area. Their loft-style apartment, which has been a graphic design studio and a recording studio, has a few problems other apartments don’t. There is no heating system, no central cooling system, no residential garbage service, no mail service and no parking. But the benefits of living in their apartment are numerous. The open architecture has allowed the room-mates to host parties with up to 600 guests, with space left over to allow bands to perform.

Henry Electric Apartments is another converted space. A former electric store opened in 1935, the building was divided into four separate apartments two years ago.

The contractors that renovated the building left the original, polished, concrete floors, while installing industrial-looking steel walls to the main room and recycled pool tiles to the bathroom. They also left the original Henry Electric sign out front, which can invite some confused visitors to the property. Residents have come out of their bedrooms to find elderly men browsing through their belongings, lооking for electrical supplies.

Rincon Apartments, located on North Six Avenue and East University Boulevard, are older apartments that boast the kind of early 20^th century architecture one won’t find in brand new places. “It’s the very first apartment building built in Tucson. It was built in 1908”, said owner and manager Margaret Sokser. “The historic building has seventeen units in it”, she said noting that over the years, there has been a fair mix of student and non-student residents. Each apartment has wooden floors, high ceilings and а fireplace.

Another apartment building in the university area, the Castle Apartments, on the corner of North Euclid Avenue and East Adam Street, was a hospital, tuberculosis sanitarium, nursing home, convent and vacation lodge before becoming an apartment building. The building, which was originally built in 1906, has thirty-two apartments and is mostly occupied by upperclassmen and graduate students, асcording to owner Kathy Busch. Castle resident Becky Blacher said living in a small complex owned by one person instead of a company made it possible for her to have an art show there. “Каthу was really excited”, she said about talking to her landlord in preparation for the show. “She’s so cool. What other landlord would let you put holes in cement walls?” Blacher said.

Decide which of the places A-D is described in each sentence 1-9.

А Studio Apartments

В Henry Electric Apartments

C Rincon Apartments

D Castle Apartments

Which residence is it?

1 It only provides the most essential conveniences.

2 It was origially designed to serve as a residential рrореrtу.

3 It used to serve hеalthcare purposes.

4 It is unusually spacious.

5 It has the biggest numbers of apartments to let.

6 It is sometimes mistaken for a shop.

7 It was used by musicians.

8 It was only converted into apartments a short time ago.

9 The people who live there seem to have good relations with the owner.