In Vilnius, the area of vacant A and B+ class offices in business centers increased slightly – At the end of 2018, the total vacancy rate (free office space) reached 4.1 percent, compared to 1.4 percent in the same period a year ago. Meanwhile, the vacancy rate for class B offices decreased from 6.5 percent to 5 percent. The vacancy rate for class A business centers managed by the real estate development company EIKA at the end of 2018 did not even reach 0.5 percent (a year ago – 4 percent). The same vacancy is planned for 2019..
According to Giedrius Brūzgė, Director of the EIKA Property Management Department, although the vacancy rate in A and B+ class business centers increased in 2018, the office rental price remained similar throughout the year – 14.0-14.7 EUR per sq m. m., which, by the way, increased slightly compared to 2017, when the price ranged from 12.4 to 13.8 EUR per sq m. m. This shows that even with vacant space, landlords believe in demand and seek to rent without reducing the price. “We ended 2018 with 0.6 vacancies in the offices we manage. We filled the vacancy rate mainly thanks to the development of existing tenants, while technological companies are happy to set up in our centers,” G. Brūzgė assesses the success.
The situation in Vilnius in the B-class office rental market is even more active – even with rising rental prices, more space has been rented here. In 2018, the price per sq m reached 9.4-9.5 EUR and was higher than in 2017 (8.7-8.8 EUR). “It is likely that companies are increasingly moving to B-class offices from even lower-class offices, improving working conditions,” says G. Brūzgė.
In Vilnius In 2018, the market was supplemented by 48 thousand sq. m. of new office space, the majority of which, about 80 percent, has already been leased. In 2019, it is planned to open almost 132 thousand sq. m. of office space, of which about 53 percent has already been leased. According to G. Brūzgė, in 2019, compared to 2018, there will be much more activity, but an even greater supply of new office space is expected in 2020, when the market should be supplemented by another 127 thousand sq. m. of office space. “Active development is observed in the central part of the city, where new office complexes that will open offer high-quality office space. Only a few office projects are planned away from the central part of the city, and they should occupy smaller areas than projects developed in the central part of the city. Another trend is the development of offices for one tenant, for example, Saltoniškių 7 stage II – Telia, Green Hall III – Oberlo, Saltoniškių 7 III – Danske,” – G. Brūzgė monitors market trends.
Kaunas The office market in 2018 was active, 7 new office buildings were opened in this city, offering almost 38 thousand sq. m. of office space to the general market. However, the vacancy rate in 2018 compared to 2017 was similar and reached 10.7 percent, in 2017 – 10.5 percent. This shows that newly opened business centers are attractive to tenants and are being leased. According to the EIKA representative, the vacancy rate is increasing in business centers opened earlier, as tenants are moving to higher-class newly opened business centers. The price per sq. m. decreased from 9.7 to 8.9 EUR per year. In 2019, 41 thousand sq. m. of space will also be active and should open in Kaunas, with half of the space already leased. However, in 2020 Only one office building is planned, and compared to Vilnius, the planned supply of new offices in Kaunas still remains smaller.
Klaipeda The office market is the most passive, with 3 office projects planned for development, but their planned completion date has not been announced and development has not begun. In 2018, office vacancy was 13 percent, up from 11 percent at the end of 2017. The price at the end of the year was 8 EUR per sq. m., slightly lower than at the end of 2017 (8.5 EUR).
Collaborations The co-working center market in Vilnius is actively expanding and 6 co-working centers have opened during the year. There are currently 19 co-working centers in Vilnius. For example, compared to Riga, the co-working center market in Vilnius is more active. In 2018, there were 14 co-working centers in Riga, 5 less than in Vilnius. In 2019, 1 co-working center has already been opened in Vilnius, and 3 more are planned to be opened. In 2019, the Live Square co-working center will be the largest in Lithuania by area, occupying 2,300 sq. m. No co-working centers planned to be opened in Riga have been announced.
Comparing the prices of memberships for an unassigned workspace in coworking centers in Riga and Vilnius, the lowest price is similar and amounts to 60-75 EUR per month. However, the highest price in Riga is 190 EUR per month, and in Vilnius it is 320 EUR per month. The average monthly price for unassigned workspaces in coworking centers in Vilnius is 162 EUR per month, in Riga – 117 EUR per month.