The Potential of Kaunas Office Market Awaits!
Despite a stalling economy, Kaunas’s office market holds potential. The hesitancy among developers may impact vacancy rates in the future. Prospects for a more developed market depend on improved dynamics between landlords and tenants.
KEY INSIGHTS
• Limited new supply: Developers are hesitant to start new construction in Kaunas, resulting in a dry spell of new office space for the next two years. This scarcity of supply is limiting tenants’ choices.
• Low leasing activity: Despite demand for office space, leasing activity remains low in Kaunas due to the serious lack of supply. In H1 2023, only a small area of office space was leased, with the few signed deals.
• Limited options for premium offices: Vacancy in class A office spaces is decreasing, and there will be no new class A offices in Kaunas in 2023. The total available class A space is quite small, leaving very limited options for tenants seeking premium offices, with the overall vacancy rate expected to fall to 2-3% in 2023.