Status of Levent Zincirlikuyu Esentepe Line in Istanbul CBD

When examining office regions within the framework of international standards, classifications are typically made as Central Business District (CBD) and Out of CBD areas. The Central Business District encompasses office areas where professional office buildings are concentrated and demand is highest.

Average rental and occupancy rates differ between CBD and Out-of-CBD areas in Istanbul. Although the regions within the CBD have varying rental and occupancy rates, they generally share similar averages.

The most defining factor of the Central Business District concept is accessibility. New transportation projects bring new settlements along with them.

As a significant trading city for centuries, Istanbul's CBD has constantly shifted over time, depending on the construction of new roads. For example, in 1846, with the connection of the Historic Peninsula and Beyoğlu via the Galata Bridge, trading areas moved from the Golden Horn, Saraçhane, and Aksaray to Beyoğlu. After 1950, commercial and manufacturing functions concentrated around Galata and Eminönü. In the 1970s, Eminönü and Beyoğlu formed the CBD, where trade was most concentrated. The opening of the Bosphorus Bridge in 1973 played a major role in shaping the modern CBD. The construction of peripheral roads led to a rapid increase in office buildings in Şişli and Beşiktaş, making Esentepe the heart of the CBD. The opening of the Fatih Sultan Mehmet Bridge in 1988 shifted the CBD's center to Levent, forming its current structure.

In today's Istanbul, the Central Business District (CBD) starts from Barbaros Boulevard, continues along Büyükdere Avenue, and ends in Maslak. This CBD corridor encompasses regions such as Levent, Etiler, Maslak, Zincirlikuyu-Esentepe-Gayrettepe, and Beşiktaş-Balmumcu. Office regions outside of these areas are classified as Out of CBD. Within the CBD, the two regions with the highest demand are Levent and the Zincirlikuyu-Esentepe-Gayrettepe regions. Below is a brief overview of the general structure and demand in these regions.

In modern Istanbul, the Levent area consists of plazas and standalone villas on both sides of Büyükdere Avenue. Levent is considered the heart of the CBD. Its location between the Bosphorus Bridge and the Fatih Sultan Mehmet Bridge provides ease of transportation. The Istanbul Metro line, which began service in 2000 between Taksim and 4th Levent, is the most significant factor providing accessibility to the area.

Over the past two years, nearly all of the production areas in the Levent region have changed hands following several sales transactions. The most notable recent deal in the area was the acquisition of the IETT land by Sama Dubai. Over the next 3-4 years, hotel, office, shopping mall, and residential projects will be developed, further transforming the region.

The Zincirlikuyu-Esentepe-Gayrettepe region can be considered the former heart of the CBD, as it was the first area in Istanbul where professional office buildings were developed. Due to the aging of the supply over time, demand for the region declined somewhat in recent years. However, new projects currently under development are revitalizing the area, making it one of the most sought-after regions in Istanbul once again.

Several large projects in the design and construction phases are located in the Zincirlikuyu-Esentepe-Gayrettepe region. One of the most significant projects in the area will be developed on the Karayolları land, purchased by Zorlu Holding, which gained much attention during and after the bidding process. The mix-use (multi-functional) project planned for this site will be a crucial development for the region. Additionally, the project being developed by the Çiftçiler family on adjacent land is also one of the notable projects within the CBD. The Tat Towers, which are being developed by Tepe İnşaat, will offer over 30,000 square meters of office space and are expected to be completed in 2008.

The current stock of office buildings in the Central Business District is unable to meet the high demand for office space. The economic crisis of 2001, which caused a halt in construction investments, and the subsequent inability of investors and developers to respond quickly to improving economic conditions are key reasons for today's supply shortage in the CBD. As the economy began to recover, investors who quickly invested in office construction started seeing returns. For example, Kempinski Residences Astoria Complex, a mixed-use project, included a portion of office spaces, which drew significant interest from potential tenants even during the construction phase. As a result, most of the office space was pre-leased.

The lack of new office projects to be added to the stock in the near future within the CBD boundaries is a clear indicator that professional office users will continue to face difficulties in finding space. Rental rates, which have increased by approximately 25-30% over the past six months, are expected to continue rising in the coming months if demand persists at its current level.