Analytics, Baltic, Real Estate

International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 07:49

Vilnius remains leader on Baltic office market

BC, Vilnius, 21.03.2018.Print version
The Lithuanian capital city Vilnius kept its leading position on the Baltic capital cities’ office market in 2017, Eriks Bergmanis, a partner at Colliers International real estate consultancy, said at the presentation of the latest Baltic real estate market overview, cites LETA/BNS.

Last year, 24,040 square meters of new office premises were completed in the Estonian capital city Talllinn and 65,960 square meters of new offices in Riga.


“While in 2011 the size of office space in Riga and Vilnius was roughly the same, Vilnius has rapidly taken the lead in the following years,” Bergmanis said, adding that the total office space built last year in Lithuania’s second largest city Kaunas was even larger than the total office space built in Riga, even though the population of Kaunas is two times smaller than that of Riga.


The Colliers representative said that around 150,000 square meters of new offices should be built in each Baltic capital in the next coming years, although there is no clarity at the moment about 35,000 square meters of office space in Riga that were supposed to be built as part of the New Hanza City project, which has been suspended due to the liquidation of ABLV Bank.


The share of unoccupied premises in A-class offices is 1.6%, in Riga, 1% in Vilnius and 5.2% in Tallinn. The share of unoccupied premises in B1 and B2-class offices ranges between 5 and 8%, with tenants tending to move to higher-class premises.


Last year, new lease agreements were signed for 35,000 square meters in Riga, around 50,000 square meters in Tallinn and more than 80,000 square meters of office space in Vilnius, where demand has been exceeding supply for several years already.


Bergmanis indicated that the monthly office rent in all three Baltic capital has been nearly identical, ranging between EUR 13 and EUR 16 per square meter in A-class offices. “Riga is costlier, though, because the offices offered for this price in Riga have been built 10 years ago, while in Tallinn and Vilnius these offices have been built in 2016 and 2017, and their quality is higher,” Bergmanis explained.

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