This post was automatically translated into English
The Klaipėda office market is gradually recovering, although this trend is quite slow.
The Klaipėda office market is gradually recovering, although this trend is quite slow.Over the year, the vacancy rate in the port city’s offices decreased from 14% to 11%, but there is still about 7,000 square meters of vacant space in business centers. The highest vacancy rate in the port city remains in modern class A business centers, which exceeds 20% and reaches 3,500 square meters.
Aistė Adamonytė, Director of the Asset Management Department of the company “Eika” Lep, points out that office occupancy is most driven by the expansion of international companies and large development-oriented local capital companies. Such companies are most often established in the capital due to the supply of qualified employees and the opportunity to choose an attractive office. When choosing an office, these companies are particularly important not only for a prestigious location, the quality of the premises and low maintenance costs, but also for the landlord’s ability to offer alternatives for future expansion.
A.Adamonytė notes that Klaipėda is still left behind by international companies. The main office tenants in Klaipėda are local capital companies related to logistics and port activities. The needs of these companies are best met by small premises from several dozen to 200 sq. meters, divided into separate offices. The demand for premises larger than 400 sq. meters in Klaipėda is very low. The rental price depends largely on the level of equipment and operating costs of the premises. “One of the main reasons for the high vacancy rate in offices is the lack of large companies. Small companies that dominate the port city are oriented towards optimally designed, smaller and cheaper office premises. Unlike the capital, in the Klaipėda market, the rental price is one of the main criteria for choosing an office. Another problem is the lack of qualified specialists needed by international companies,” says the representative of “Eika”.
The Baltic Business Center, managed by the company Eika, stands out in the Klaipėda office market. Currently, all the premises in it are leased. “The recipe for success is the proven lease-back strategy. Some companies have already purchased premises in this center, while others continue to extend lease-back agreements,” says A.Adamonytė. “In Klaipėda, tenants tend to choose smaller offices, so the concept of this center “hit the top ten”. The most popular premises in this business center are small office-type premises of 25-35 sq. meters. According to Eika, the Baltic Business Center is the only office building in Klaipėda where lease-back is possible, not just office rental or sale.
No new larger business center projects have been implemented in Klaipėda over the past two years and are not planned in the near future. This is due to high vacancy rates, low rental prices and the lack of large development-oriented companies. Given the current situation, the representative of the company “Eika” does not predict any price changes in the Klaipėda office market in the near future. The average rental price of vacant premises in the port city has not changed for the past few years and remains at 30-35 LTL/ sq. meter in class A business centers, 18-26 LTL/ sq. meter in class B.
More information:
Arvyda Rimšaite
Project Manager at UAB “Eika”
Mobile: +370 614 81106