Kaunas Office Outlook, 2022 H2

Can the sleeping tiger in the Kaunas office market be awakened?

At the end of 2022, Kaunas had roughly 271,500 sqm of modern office space. As previously forecast, by year-end there were few attractive options left on the market for relocation or business start. The next 2 years will be dry in new supply and tenants will find little available space on offer.

• Vacancy in class A has fallen to 2.2%, the lowest level since the largest class A buildings were opened and substantial new supply was added to the market in 2018-2020.
• The Kaunas office market is very short of supply, so it is difficult to offer tenants solutions. Take-up was about 5,400 sqm in H1 2022 and some 9,900 sqm in H2.
• We await more signs of a mature market in Kaunas as the potential on the office segment is huge.