Riga office market sees increase in preleasing deals
The “Riga Office Outlook” report for the third quarter of 2021 shows that more and more new space is being developed in the Latvian capital. Rising along with the new properties is the number of prelease agreements.
- Take-up of 24 000 sqm in Q3 was driven by a number of small and medium-sized deals and one significant pre-lease agreement.
- Amid demand for both class A and class B offices, overall market vacancy fell from 13.2% to 12.5% during the quarter.
- Demand for both class A and class B offices has been similar recently, and prices have been stable: class A office rents are roughly 14-18 euros per sq. m., and class B rents about 9-16 euros.
- In 2022 more than 40,000 sq. m. of new office space will be offered to the market in Riga.
- With a large amount of office space due to be delivered in the near future, pre-lease agreements are set to increase for the most desirable space, with a focus on enhancing employees’ wellbeing.