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In Vilnius, as demand for offices grew, the occupancy rate of business centers reached record highs, not seen since 2007.
In Vilnius, as demand for offices grew, the occupancy rate of business centers reached record highs, not seen since 2007. Although the supply of offices grew in 2013, three new A and B+ class business centers opened in the capital, with an area of about 17 thousand square meters, and almost all of the premises were leased. The vacancy rate of business centers in the capital decreased to 1 percent.
“Last year, the growth in office demand was driven by the improving economy of the country, the arrival of new international companies and business development,” says Aistė Adamonytė, Director of the Asset Management Department of the real estate company Eika. Almost all offices in the Eika Business Centre managed by the company are also leased. Only 200 square meters are available, which makes up less than one percent of the leased area.
Currently, the Vilnius office market is not only active, but also undergoing many changes. The most noticeable change is the changed needs of tenants. The market is dominated by demand for larger offices, with an area of from 500 to 2000 square meters. The main requirement is the largest possible typical floor area, therefore this trend is reflected not only in the business centers under construction, but also in the ones being designed. The criteria of office location, surrounding infrastructure and maintenance costs also remain important.
“There is a trend that companies moving to new premises are investing more in the equipment of the premises and office furniture. More attention is paid to the comfort of employees: bicycle storage rooms, showers, as well as larger kitchenettes and employee leisure areas are installed, for which the most attractive premises are given, for example, with the most beautiful panorama. Previously, this view would probably have been the location of the management or director’s office,” – the representative of “Eika” lists the changes in the lease. “As open-type offices become more popular, small conversation rooms – “booths” are becoming relevant.”
Bicycle parking options are becoming increasingly relevant for landlords, which are most often asked about by representatives of international companies. Car parking also remains no less relevant. According to A.Adamonytė, in order to effectively distribute parking spaces and provide an opportunity to offer more of them to tenants, a new parking system will be installed in the “Eikos Business Center”. “We will apply a world-popular system that only provides access to the car park, without assigning a specific parking space. In this way, the use of spaces is optimized, because every day some of the employees located in the business center are on vacation, sick, or go on business trips, so their parking spaces remain empty,” says the real estate specialist.
By the end of this year, the vacancy rate in Vilnius business centers will remain minimal. More changes in the office market will occur in 2015, when the business centers currently under construction will be completed. With the opening of new business centers, previously built office buildings will have to invest in system improvements and modernization in order to maintain their current class. Otherwise, the gradually decreasing value of the “old” business centers will be reflected in office rental prices.
More information:
Arvyda Rimšaite
Project Manager at UAB “Eika”
Mobile: +370 614 81106